TSRC Corporation, Indian Oil Corporation, Marubeni Corporation Joint Venture to establish Styrene-Butadiene Rubber manufacturing facility in India

Indian Oil Corporation, TSRC Corporation (TSRC), Taiwan and Marubeni Corporation (Marubeni), Japan have executed a Joint Venture Agreement for implementation of a state of art, 120,000 TPA Emulsion Styrene Butadiene Rubber (e-SBR) project based on Butadiene feed available from IndianOil's Panipat Naphtha Cracker Complex (PNCP).

TSRC is the e-SBR technology provider and a leading producer & supplier of synthetic rubbers. Marubeni is one of the largest general trading companies in Japan engaged in the trading of commodities including but not limited to oil, gas, chemicals, metals, machineries, foods, etc on a global level.

There is a robust growing demand for SBR in the country which is utilized for manufacture of automotive tyres / conveyors/ fan belts etc. At present, there is no operating e-SBR capacity in the country and the entire e-SBR domestic demand is met through imports. Thus setting up of the e-SBR unit at Panipat would not only result in import substitution but would also add value to the intermediate streams of IndianOil's PNCP.

IndianOil, TSRC and Marubeni had earlier carried out a detailed feasibility study for setting up of the e-SBR plant at Panipat based on which, the Boards of Directors of IndianOil, TSRC and Marubeni have subsequently approved implementation of the project in Joint Venture. The equity structure of the Joint Venture would be IndianOil – 50%, TSRC – 30% and Marubeni - 20 %.

The project is targeted to be completed by Q2'2012 at an estimated cost of Rs.900 Crore. Provisions for a quick expansion of the plant to 200,000 MT per annum depending on the demand have also been planned.