China's top oil refiner, the Sinopec Corp., and Russia's leading petrochemical holding company SIBUR signed a memorandum on Tuesday for two planned joint ventures for the production of butadiene nitrile rubber in the cities of Krasnoyarsk and Shanghai.
According to the document, the two companies are also considering cooperative projects concerning polyisoprene rubber, petrochemical feedstock supplies and unconventional sources of feedstock for Russia and China.
Sinopec and SIBUR have agreed to hold talks about cooperative opportunities in the petrochemical industry.
If the joint ventures are formed, SIBUR will provide polymerization and finishing technology. The existing butadiene nitrile rubber production capacity of the Krasnoyarsk rubber plant in Russia will be expanded to 56,000 metric tons per year, while the Shanghai facility will have a projected annual production capacity of 50,000 metric tons.
The share price of Sinopec dipped about one percent to 7.09 HK dollars per share in Hong Kong on Tuesday and slid 0.58 percent to 6.86 yuan per share in Shanghai.
