The signing of the agreement was witnessed by Igor Shuvalov, First Deputy Prime Minister of the Russian Federation, and Li Keqiang, the VicePremier of the State Council of the People's Republic of China.
The agreement forms the basis for the creation of a joint venture (JV) for the production of butadiene nitrile rubber in Krasnoyarsk (Russia). Sinopec plans to acquire 25% plus 1 share in the Krasnoyarsk rubber plant. The companies will consider expanding the plant’s current production capacity from 42,000 tonnes to 56,000 tonnes per year.
The cooperation agreement describes the mechanism for the financing of the JV, as well as arrangements relating to share capital, management, raw material supply and marketing.
A final decision on the establishment of the JV is expected by the end of 2012.