Indian Oil Corporation Limited (IOCL) has announced plans to build a 60,000 ton per annum (tpa) polybutadiene rubber (PBR) plant at its existing naphtha cracker complex in Panipat.
IOCL be investing Rs 14.6 billion ($191 million) in the new facility.
The plant will use technology provided by the Goodyear Tire & Rubber Co. The project is expected to be operational by 2025.
The company has informed that it will source the feedstock butadiene for the production of PBR from the 138,000 tpa butadiene extraction unit (BDEU) at the Panipat complex.
India Oil informs that 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 tyre industry consumes more than 80% PBR in India, with the remaining 20% going to industries such as footwear and conveyor belts.