India is the fourth largest producer of natural rubber in the world

India is working on a synthetic rubber project. Despite the world economic downturn and institutional predictions, India’s economic growth rate in 2012–2013 will be significantly lower than in previous years due to declining demand, but this has not affected India’s enthusiasm for the construction of the synthetic rubber industry.

The promising demand outlook is the main driving force for India to start large-scale construction of synthetic rubber projects. At a recent project analysis meeting held by the Indian Oil Company, the senior representatives of the Formosa Plastics Corporation who participated in the Indian Synthetic Rubber Project stated this way. The development of the synthetic rubber industry in a seemingly unoptimistic economic environment is not a counter-trend for India but a realistic choice.

At present, the contradiction between demand and production capacity of synthetic rubber in India is more prominent. According to statistics, as of 2010, India's synthetic rubber production capacity is only 113,000 tons, but the consumption has reached 406,000 tons. Filling this huge demand gap is the direct cause of India’s rapid development of the synthetic rubber industry.

In the next two years, India will have 400,000 tons/year of synthetic rubber production capacity, including an annual production of 12 million tons of milk built by Formosa Plastics Co., Ltd. and Indian Oil Corporation in partnership with Japan Marubeni Corporation. The butadiene-styrene rubber plant will be put into operation in the first quarter of 2013. The unit is located in Panipat, Haryana State, India. The raw material butadiene will be supplied by the Indian Oil Company in the local cracker, while styrene will be imported. It is reported that the joint venture intends to expand the capacity of the plant after it has been put into production for a period of time to increase its production capacity by 20%, and it is also possible to build another production line when appropriate. By 2015, the joint venture company will The total production capacity of benzene rubber will reach 200,000 tons.

In the face of this investment hot spot, other Indian companies are also implementing their own expansion plans. India's Prudential Industries is building a 150,000-ton/year SBR plant in Hazela, Gujarat. It is expected that it will be completed and put into operation in mid-2013. In the same period, the company also set up a set of 40,000 tons/year polybutadiene rubber plant. India Prudential Industries also established a joint venture with Russia’s Sibur Company in Jamnagar, Gujarat, and will build a 100,000-ton/year butyl rubber plant, which is expected to start production in 2014. India GAIL also recently announced plans to establish a polybutadiene rubber plant with a capacity of 90,000 tons/year in Dahej, Gujarat.

India is the fourth largest natural rubber producer in the world, but it is also a big consumer of natural rubber. At present, natural rubber accounts for a large share of India's rubber consumption. However, India is still heavily dependent on imports of synthetic rubber. Data show that in 2011, the demand for natural rubber in India's tire industry was 680,000 tons, and the demand for synthetic rubber was 143,000 tons; the demand for natural rubber in non-tire industry was 284,000 tons, and the demand for synthetic rubber was in demand. It is 285,000 tons.

The relevant agencies estimate that the demand for natural rubber in the Indian tire industry this year will be 722,000 tons, and the demand for synthetic rubber will be 156,000 tons; the demand for natural rubber in the non-tire industry will be 295,000 tons, and the demand for synthetic rubber It was 342,000 tons. According to forecasts, the total domestic demand for natural rubber and synthetic rubber in India will reach 1.93 million tons by 2015, and will further increase to 2.534 million tons by 2020, of which the demand for synthetic rubber will reach 935,000 tons.

In addition, with India’s population growth in the next 10 years and GDP per capita reaching US$10,000 in the next five years, coupled with India’s current increase in infrastructure construction, especially road construction, the company’s car will be promoted more effectively. And the development of the tire industry.

At the same time, the Indian car and passenger car industry is also developing strongly. From 2011 to 2012, India’s car sales are in the range of 9 to 10 million vehicles. Experts expect India’s car sales and production volume to increase at an average annual rate of 14% in the coming years. The 16% increase in speed has driven India’s demand for synthetic rubber to continue to increase.