TOKYO (ICIS news)--India will have its first styrene butadiene rubber (SBR) plant in Panipat, to be built by a joint venture between Indian Oil Corp (IOC), Marubeni of Japan and TSRC Corp of Taiwan, a spokesperson of the Japanese trading firm said on Tuesday.
The 120,000 tonne/year styrene butadiene rubber (SBR) project in the Haryana state, valued at $200m (€148m), would be 50%-owned by Indian Oil. TSRC would have a 30% stake in the project, while Marubeni would hold the remaining 20%, said Kyoko Kawase of Marubeni.
A joint venture company, tentatively named Indian Synthetic Rubber Ltd, was created to run the plant, she said.
“The project is being commissioned right now but we do not expect construction to start until the latter half the year,” said a source at Indian Oil, adding that the plant was expected to come on stream in the third quarter of 2012.
Indian Synthetic Rubber was targeting net sales of
$100m in 2012, said Kawase of Marubeni.
The plant would be built to capitalise on the growing demand for cars in India, the companies had said earlier on in a joint statement. India currently relies on imports for its domestic SBR demand.
SBR is used in the production of automotive tyres, conveyors
and fan belts.
IOC’s naphtha cracker in Panipat would provide the feedstock butadiene to the SBR plant, while another raw material – styrene – would be imported, Marubeni’s Kawase said.
The cracker, which has an 857,000 tonne/year capacity,
started up in early March.
The Panipat SBR plant would use the production technology of Taiwanese synthetic rubber producer TSRC, based on the plan.
With additional reporting by Nurluqman Suratman
($1 = €0.74)