Report: Marubeni, India Oil and TSRC to Form JV in India for Tire Rubber
04 April 2010
The Nikkei reports that Japan-based Marubeni Corp., state-run India Oil Corp. and Taiwan-based TSRC Corp., a maker of synthetic rubber, will form a joint venture to produce tire rubber in India.
The JV reportedly will launch as early as May; India Oil will hold 50%, TSRC 30%, and Marubeni 20%.
The new firm is expected to build a 18 billion yen [US$190 million] factory that will be able to pump out 120,000 tons of styrene-butadiene rubber when it opens in 2012. That amount is equivalent to India’s current annual demand.
India Oil operates eight domestic oil refineries. It has been working to bolster its petrochemical operations, including by recently bringing onstream its first naphtha cracker. The joint venture will use butadiene—a byproduct of the cracker—to make the styrene-butadiene rubber, a core input for tires.
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