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The joint venture, in which Sinopec will hold 74.9% and Sibur 25.1%, will be established to build a butadiene nitrile rubber plant at the Shanghai Chemical Industry Park some 50 km (30 miles) south of Shanghai with an annual capacity of 50,000 tons.
The agreement was signed in the presence of Chinese President Xi Jinping and Russian President Vladimir Putin.
The parties also signed a technology license agreement for the use of Sibur’s butadiene nitrile rubber production technology at the new facility. Sibur’s specialists will take part in establishing the new facility’s production and commercial operations.
Media reports earlier said the cost of construction could amount to $150 million.