Russia-China Joint Venture Redomiciles From Cyprus to Vladivostok

The joint venture between Russia’s SIBUR and China’s Sinopec, which owns the Krasnoyarsk Synthetic Rubber Plant (KZSK), has redomiciled from Cyprus to the special administrative region on Russky Island, Vladivostok Urban District, the Unified State Registry of Legal Entities (USRLE) has stated.

The USRLE said that Sibur-Sinopec Rubber Holding Company International LLC redomiciled in late December on Russky Island as an International Limited Liability Company (ILLC) named Sibur-Sinopec Rubber Holding Company.

SIBUR-Sinopec Rubber Holding Company Ltd. owns 100% of JSC KZSK. Sinopec acquired 25% plus 1 share of the company for US$13.3 million in 2014.

The Krasnoyarsk Synthetic Rubber Plant was established in 1993, and it specializes in the production of various grades of nitrile butadiene rubber, including nitrile butadiene rubber powder. These products are widely used for their oil, fuel, and chemical resistance, making them ideal for automotive seals, hoses, O-rings, and gaskets, as well as aerospace components, industrial rollers, and protective gloves (medical, lab, and heavy-duty). They are also found in adhesives, conveyor belts, footwear, and flooring and as a modifier for PVC, valued for durability, temperature tolerance, and abrasion resistance in demanding environments.

Russky Island is a special economic zone and offers preferential tax treatment and financial incentives for investors.