Sinopec Group to buy shares in Russian rubber plant

China's top refiner Sinopec Group has signed an agreement with Russian petrochemicals group Sibur to buy the latter’s 25% shares plus 1 stock in a synthetic rubber plant, with 42,500 tons/year of process capacity inRussia.

The deal is still waiting for both governments’ approve.

After the JV founded, the JV plans to lift it capacity to 56,000 tons/year.

Not long before, Sinopec Group and Sibur signed a frame work to establish a joint venture inShanghaito produce synthetic rubber, Sinopec disclosed on Friday.

The joint venture will use patents and technologies from Sibur to produce nitrile butadiene rubber and isoprene rubber.

Sinopec and Sibur signed a deal on April 28 to establish a joint venture inKrasnoyarskofRussiato produce nitrile butadiene rubber. Through the joint venture, the companies are considering expanding the Sibur plant's current annual output of 42,000 tonnes to 56,000 tonnes.

Nitrile butadiene rubber is used in the automobile, aerospace, oil exploration, textiles and printing sectors. Isoprene rubber is used to produce tires.