An agreement has been signed between China Petroleum and Chemical Corporation (Sinopec Corp.) and Sibur for the establishment of a joint venture that will produce 50 thousand tonnes of nitrile butadiene rubber (NBR) per year at a site in the Shanghai Chemical Industry Park, located 50 kilometers from Shanghai. Sinopec’s and Sibur’s shares in the JV will amount to 74.9% and 25.1% respectively.
The parties have also signed a licensing agreement under which the new plant will make NBR using Sibur’s technology.
Specialists from the Russian holding company will become employees of the JV and will play an active role in organizing the launch of the production process and overseeing the commercial-mode operation of the new facilities.
“Last year, Sibur and Sinopec set up a rubber JV at the site of OJSC Krasnoyarsk Synthetic Rubber Plant (KSRP), with Sinopec assigned a stake of 25% + 1 share. Deliveries to China’s market under the partnership with Sinopec now consume a significant portion of KSRP’s output. It is our strong belief that the establishment of a new joint venture in Shanghai will serve to improve market satisfaction and contribute to the development of China’s economy,” said Sinopec.
