Driven by the rapid growth in the demand for automotive tires, global consumption of SBR (styrene-butadiene rubber) continues to expand. In this situation, related companies actively carried out capacity expansion, but raw material supply for butadiene remained tight. LANXESS Germany predicts that the global demand for high-performance rubber SBR will continue to grow at an average annual rate of nearly 10% in the next few years. If energy expansion is not carried out, it is expected that there will be a global supply shortage for SBR by 2014. Currently in the United States, replacing tires has become the industry with the highest SBR demand.
LANXESS announced on April 14 that it intends to increase its production capacity of SSBR and Nd-PBR by 20,000 tons/year at the Orange Factory in Texas, USA. Completed by the end of 2012. The current SSBR and Nd-PBR capacities of the plant are 25,000 tons/year and approximately 25,000 tons/year respectively. Lanxess said that the expansion project will invest 14.5 million US dollars. In addition, the company's expansion work in Leverkusen will be completed in April 2012. LANXESS also plans to expand its SSBR production capacity at its production site in Gironde, France. With the development of the world auto industry, especially the strong demand of automakers in China and India, SBR consumption will continue to grow rapidly. At the same time, the demand for tires that are more environmentally friendly and safer for drivers has also contributed to the rapid development of the SBR market.
In the European Union, new regulations to be implemented starting in November 2012 require that new tyres sold in Europe must be marked with indicators such as fuel economy, wetland grip and external rolling noise, which will stimulate SBR demand growth. At the same time, Japanese tire manufacturers also introduced a similar tire labeling system in early 2010, and the United States is currently evaluating similar labeling regulations. These programs in Japan and the EU aim to reduce CO2 and noise emissions by promoting the use of green tires without sacrificing safety indicators.
In January 2010, LANXESS announced that it will build a 100,000-ton/year butyl rubber plant on Jurong Island in Singapore. The project is expected to be completed in the first quarter of 2013.
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