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Rosneft and Pirelli sign memorandum of understanding seeking synthetic rubber partner

Wednesday, October 22, 2014

Moscow, Russia - Rosneft head, Igor Sechin, and Pirelli’s chairman, Marco Tronchetti Provera, signed a memorandum of understanding in the area of research and development, producing and shipping of synthetic rubber in the city of Nakhodka in the framework of the FEPCO (Far East Petrochemical Company) petrochemical cluster. Within the signed memorandum, Rosneft and Pirelli specified the requirements for the engagement of a third party acting as a technological and production partner. Moreover Rosneft and Pirelli claim their intentions of using FEPCO petrochemical cluster, which is situated in Nakhodka, for synthetic rubber production for the purpose, among other things, of supplies to Pirelli’s own tire production facilities in South-Pacific region. Above all, Rosneft and Pirelli show intention to develop research, design and experimental projects in this area in Nakhodka. Styrene butadiene rubber, which is supposed to be produced there, is an environmentally-friendly material, which is used in production of so called “green tires”. It improves adherence on both wet and dry road and helps to reduce fuel consumption. After signing the memorandum, Igor Sechin said: “The execution of this Memorandum represents a unique growth opportunity for Rosneft in the high-margin petrochemical field. Joint research and cooperation in the field of production and marketing will allow Rosneft and Pirelli to maximize the efficiency of the project and will let the parties develop and implement marketing know-how and acquire new competencies”. Marco Tronchetti Provera, chairman and CEO of Pirelli, said: “The agreement signed today goes in the direction of strengthening the synthetic rubber project in Nakhodka both technologically and in terms of the already existing synergies between Pirelli and Rosneft. It is also shows Pirelli and Rosneft beginning to move together into new alliances which, as we have already said, could also be a part of our future cooperation.”


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