Reliance and Sibur to Build a Halogenated Butyl Rubber Plant in Gujarat

India: Reliance Sibur Elastomers Private Ltd. (RSEPL), a joint venture between Reliance Industries Limited (RIL) and Sibur, announced the construction of butyl rubber halogenation manufacturing facility at RIL’s integrated petrochemical site in Jamnagar. The unit is expected to start operations in 2018 and produce about 60,000 MT of halogenated butyl rubber every year. Additionally, 1,20,000 MT per annum butyl rubber plant is under construction which would supply butyl rubber feed to the halogenation plant.

Techsci Research depicts that the start-up of South Asia’s first butyl rubber halogenation unit in Gujarat by Reliance Sibur Elastomers Private Limited is expected to capitalise on the surge in regional demand in tyre and pharmaceutical industries. Production of halogenated butyl rubber in India is forecast to reduce the dependence of Indian tyre manufacturers on imports. Moreover, rapid growth in the automotive industry of India and increasing demand for tyres, especially tubeless tyres, is projected to boost the demand for halogenated butyl rubber over the next few years.

According to the recently published report by TechSci Research, “Global Tire Chemicals Market By Type (Natural Rubber, Synthetic Rubber, Carbon Black, etc.), By Tire Category (Passenger Car, Bus and Truck etc.), By Region, Competition Market Forecast & Opportunities, 2011-2025”, the tire chemicals market is projected to surpass 42.58 million tons by 2025, on account of accelerating demand for highly durable tires majorly by passenger cars, medium & heavy commercial vehicle and OTR tires segment. Tire chemicals are of various types such as, natural rubber, synthetic rubber, accelerators, plasticizers, stearic acid, etc. Moreover, Natural rubber and synthetic rubber were the two leading tire chemicals in global tire chemicals market in 2015, and this trend is expected to continue through 2025, as natural rubber and synthetic rubber accounts for more than 50% consumption in global tire industry. Moreover, global tire chemicals market has been segmented demand in the basis of tire category, which was dominated by passenger cars 2015 and the same trend is anticipated to continue through 2025, owing to rising production and sales of passenger car across the globe.