Sinopec subsidiary to buy Russian rubber plant stake

Sinopec Corp., China's largest oil refiner, said on Wednesday its subsidiary has agreed to acquire a 25-percent stake in Russian petrochemical company Sibur's rubber plant in the Russian city of Krasnoyarsk.

Sinopec International (Hong Kong) Co., Ltd., has signed an agreement to buy 25 percent plus one additional share in the Russian synthetic rubber plant, according to a Sinopec statement that did not reveal the value of the deal.

According to the agreement, the additional share will give Sinopec International (Hong Kong) Co., Ltd. a right to veto in corporate business such as increases of corporate assets and changes of corporate executives.

Named as Krasnoyarsk Synthetic Rubber Plant, the plant is able to produce 42,500 tonnes of nitrile rubber each year.

Both parties are considering the possibility of increasing the production capacity of nitrile rubber to 56,000 tonnes each year upon establishment of the joint venture.

The deal is still subject to the approval of the Chinese and Russian governments.

The two firms are also in talks to set up a joint venture to produce nitrile as well as polyisoprene rubber in Shanghai, according to the statement. The two sides predicted the output of each materials could reach 50,000 tonnes annually.