Sinopec and Sibur partner for butadiene nitrile rubber JV
Sinopec Group and Sibur have entered into a cooperation agreement to form a butadiene nitrile rubber joint venture (JV) in Krasnoyarsk, Krasnoyarsk Krai, Russia.
The cooperation agreement includes the mechanism for the financing of the JV, and arrangements relating to share capital, management, raw material supply and marketing.
Under the JV, Sinopec plans to buy 25% and one share in the Krasnoyarsk rubber plant.
The JV will also consider expanding the plant's current production capacity from 42,000t per annum to 56,000t per annum.
The JV is expected to be established by the end of 2012.
As well as the rubber plant JV agreement signed in October 2011, Sinopec signed a preliminary agreement with Sibur to form a polyisoprene rubber JV, including the supply of petrochemical as well as unconventional sources as feedstocks.
Sibur will provide polymerisation and finishing technology for both JVs, and the companies will work together on upstream and downstream businesses.
Butadiene nitrile rubber is used in the petroleum and natural gas industries and in applications such as water, sewer, mineral oil and vegetable oil.
Headquartered in Beijing, Sinopec distributes synthetic fibre, chemical fibres and fertilisers, as well as manufacturing petroleum products and crude oil.