IOC, allies line up Rs 900 cr for synthetic rubber plant

NEW DELHI: Indian Oil Corp (IOC) and its partners Marubeni Corp and Taiwan’s TSRC Corp will invest Rs 900 crore in setting up a unit to manufacture synthetic rubber for tyres. 

The three will build a plant at Panipat in Haryana by September 2012 to manufacture 1,20,000 tonne a year of synthetic rubber from butadine, an IOC statement said here. 

Butadine will be sourced from IOC’s naphtha cracker at Panipat. IOC will hold 50% in the venture while TSRC will have 30%. Marubeni will hold the remaining 20%. The plant has been planned to benefit from rising auto demand in India. The SBR would produce high quality synthetic rubber used in the manufacture of automotive tyres, conveyors and fan belts.