Indian Oil to build 60ktpa butadiene rubber plant

Mumbai, India – Indian Oil Corp has announced plans to build a 60 kilotonne-per-annum (ktpa) polybutadiene rubber (PBR) plant at its existing naphtha cracker complex in Panipat, north of Delhi.

In a filing with the Bombay Stock Exchange 16 March, the Indian state-owned company said it would be investing Rs 14.6 billion ($174 million) in the new facility.

Set for operation by 2025, the plant will use technology provided by the Goodyear Tire & Rubber Co., the filing added.

The company said it will source the feedstock butadiene for the production of PBR from the 138ktpa butadiene extraction unit (BDEU) at the Panipat complex.

India Oil said the decision to build the new plant was made in view of "the present deficit" in PBR production in India and "the steadily growing demand."

"The demand-supply deficit is expected to grow considerably in the future,” the company said in its statement.

The tire industry, it added, consumes more than 80% PBR in India, with the remaining 20% going to industries such as footwear and conveyor belts.