Specialty rubber output to rise

The global rubber supply gap, especially for natural rubber, is projected to reach over one million tonnes by 2020, with demand from tyre manufacturers pushing consumption to over 16 million tonnes. By 2020, global rubber consumption is seen to hit 35.9 million tonnes with synthetic rubber accounting for more than half at 19.3 million tonnes, while the rest at 16.5 million tonnes would be for natural rubber. Of this, consumption by tyres will account for 23.2 million tonnes and general rubber goods 12.6 million tonnes, according to estimates by the International Rubber Study Group.

Given this scenario, the rubber industry has focused increasingly in serving the rising demand while meeting the sustainability challenge. The concept of “Green Mobility” has brought forth a number of major projects with the more important ones in Asia – and all are geared towards the production of environment-friendly rubber products.

The past few years saw LANXESS AG infusing huge capital into its various facilities, one of which is touted as the world’s biggest neodymium-based performance butadiene rubber (Nd-PBR) plant being constructed in Singapore at a cost of € 200 million. The facility will add 140,000 metric tonnes annually to LANXESS’ capacity once completed in 2015 to supply premium rubber for the manufacture of “green tyres” to the burgeoning automotive markets in Asia.

The momentum to invest on this new facility stems from the anticipated rise in demand for specialty rubbers as a result of the fast-growing market for “green tyres.” Nd-PBR is used in the treads and sidewalls of such special tyres. It helps reduce the rolling resistance and increase the fuel efficiency of a tyre. Nd-PBR is highly resistant to abrasion and plays a significant role in making tyres safer and, above all, more durable. “Green tyres” production is currently the fastest-growing segment in the tyre industry – growing by as much as 10% annually.

Four key global megatrends - mobility, urbanisation, water and agriculture – are expected to drive LANXESS strategy in 2013, which will apply to all its markets in various regions of the world, most especially in Asia.

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