TNI || New Delhi || 22nd March 2022
The government-owned Indian Oil Corporation Ltd. (IOCL), which happens to be a diversified, integrated energy company, plans to invest Rs. 1459 crore in a poly-butadiene rubber (PBR) project at its Naphtha Cracker Complex in Panipat, Haryana.
IOCL expects to start commercial production on this project by 2025, with its presence in practically all channels of oil, gas, petrochemicals, and other energy sources.
In a report to the Bombay Stock Exchange (BSE), IOCL stated that the company’s board of directors approved the PBR project during a recent meeting held on March 16, 2022.
Based on state-of-the-art technology provided by Goodyear Tire & Rubber Company, a global pioneer in automotive tyres, the facility will have a PBR manufacturing capacity of 60,000 tonnes per year.
The Goodyear Tire & Rubber Company happens to be an American multinational tyre manufacturer that makes tyres across all the segments one can think of, including bicycles.
Alongside Bridgestone from Japan, Michelin in France, and Continental from Germany, Goodyear is one of the top four tyre manufacturers in the world.
The major source of raw materials for the manufacturing of PBR is butadiene, which will be available from the company’s existing Naphtha Cracker Complex.
PBR is consumed mostly by the tyre sector in India, accounting for more than 80% of total usage, with the remainder going to other sectors such as shoes, conveyor belts, and so on.
Given India’s current PBR production deficit and continually rising demand, the demand-supply gap is anticipated to grow further in the future.
The project’s implementation would reduce India’s reliance on imported PBR, thus assisting the objectives of Atmanirbhar Bharat and Make in India.
According to the company statement, the petrochemical intensity rating of Panipat Refinery & Petrochemical Complex will climb from 15.9% to 18.05 percent with the activation of this project, as well as other planned developments.
In the financial year 2020–21, India’s synthetic rubber production increased by 7.4% to 428,320 tonnes, while consumption decreased by 4.9 percent to 618,000 tonnes, according to data compiled by the Rubber Board.
This creates a significant shortage of natural rubber, including PBR, in the country.