MOSCOW (MRC) -- During Russian President Vladimir Putin’s state visit to China, SIBUR, a leading Russian gas processing and petrochemicals company, signed a contract with China Petroleum and Chemical Corporation (or "Sinopec") to establish a joint venture for the construction of a 50,000 tpa butadiene nitrile rubber (or "NBR") plant at the Shanghai Chemical Industry Park, 50km south of Shanghai, reported SIBUR on its site.
Sinopec’s share in the joint venture will be 74.9% and SIBUR’s will be 25.1%. Chinese President Xi Jinping and President Vladimir Putin were both present at the signing ceremony.
The parties also signed a technology license agreement for the use of SIBUR's NBR production technology at the new facility. SIBUR’s specialists will take part in establishing the new facility’s production and commercial operations.
Sinopec expressed, "Last year the two parties developed a joint venture on the site of the Krasnoyarsk Synthetic Rubber Plant (or KZSK) in Russia. Sinopec purchased 25% + 1 share of KZSK. Today, a significant proportion of KZSK products are delivered to the Chinese market through their partnership with Sinopec. Sinopec believes that with the establishment of this new joint venture in Shanghai, Sinopec will be better equipped to fulfil market demand and contribute to China’s economic development."
SIBUR expressed, "China remains a fast developing market, committed to replacing imports with domestic production. Sinopec is a leader in this market with significant resource capabilities, and this, combined with SIBUR’s advanced technologies for producing butadiene nitrile rubbers, will enable a successful long-term partnership between the two companies. It will also enable us to develop a highly competitive production facility in China and expand SIBUR’s footprint in the Asia market."
Butadiene nitrile rubber (NBR) is essentially an acrylonitrile and butadiene copolymer obtained by the emulsion polymerization method. Due to high resistance to aggressive agents NBR is widely used for the manufacture of various oil-and-petrol resistant industrial rubber products. NBR is essential to manufacture aircraft fuel tank seals, fuelling hoses, bag fuel tanks, and aircraft window seals. The material is used in conveyor belts for the food industry and in rubberised textile fabrics for aggressive environments.
SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. We own and operate Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and are a leader in the Russian petrochemicals industry. As of 31 March 2014, SIBUR operated 27 production sites located all over Russia, had over 1,400 large customers engaged in the energy, chemical, fast moving consumer goods (FMCG), automotive, construction and other industries in approximately 70 countries worldwide and employed over 27,000 personnel.
Sinopec Corp. is one of the largest scale integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading crude oil and natural gas; producing, storing, transporting and distributing and marketing petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. Its refining capacity and ethylene capacity rank No.2 and No.4 globally. Sinopec listed in Hong Kong, New York, London and Shanghai in August 2001. Sinopec Group, the parent company of Sinopec Corp., is ranked the 5th in Fortune Global 500 in 2012.