Lanxess and S-SBR - final update

Lanxess is in the final stages of a

major research project into global demand for S-SBR in the coming years.The company expects to see the results of the 18-month study by the middle of this year.

Initial results show that demand for

the material is likely to grow rapidly on the back of increased

demand for fuel-efficient tyres. In fact, according to Christoph

Kalla, head of marketing for Lanxess performance butadiene rubber

group, all capacity which has been publicly announced up to now is

likely to be full almost as soon as it comes on stream.

ERJ has tracked announcements relating

to over 500kt of S-SBR due to come on stream between now and 2015

(see table), on top of an estimated total capacity at present of

around 1200 kt.

Much of this new capacity is in plants

expected to be dedicated to S-SBR for the tyre industry, however, all

such plants will be capable of making a range of materials, including

styrenic block copolymers (SBCs); and butadiene rubber in addition

to S-SBR.

Of this 1200 kt of existing capacity,

Kalla noted that up to 400 kt is dedicated to SBCs and so-called

first-generation S-SBR.

Kalla said that it is possible to make

simple SBR molecules in these plants - equivalent to emulsion SBR

molecules -- and this is what the first generation solution plants

mostly did. Lanxess' approach, he said, is to make more sophisticated

materials, not only predetermined molecular weights and branching

structures, but also in terms of functionalised groups at the chain

ends and along the backbone.

This type of high-tech material is

likely to become increasingly in demand as a complement to Lanxess

range of Nd-BR materials. The combination, said Kalla, can be used not

only to deliver specific properties such as fuel economy, wet grip

and longevity to tyres, but also to tune the compounds to the process

equipment and conditions within the factory, with the potential to

make the plant more productive.

Lanxess' study into S-SBR covers not

only applications in tyres, but regional variations and involved

detailed discussions with individual customers - mostly in the tyre

segment - to determine their likely needs for specific attributes

and properties in the coming years.

He said that customers are sometimes

prepared to pay higher prices for materials if they can identify

specific benefits which will add value for their own customers.

Kalla noted that with the advent of

consumer labels for tyres in Europe, Korea, Japan and increasingly

other countries, the benefits of improved wet grip and rolling

resistance can be made immediately obvious to the end-user. Because

these benefits are now immediately obvious, there is more willingness

from the tyre makers to accept some of these new technologies, he

said.

Overall, said Kalla, Lanxess is

continuing to invest in its S-SBR business, but not at the commodity

end of the spectrum.

He said that the introduction of new

players and new plants into the S-SBR field is unlikely to have the

effect of eroding margins through commoditisation. On the contrary,

he said, in addition to the significant pent-up demand, the

increasing number of producers will lead to increasing numbers of

grades and specialised materials, designed specifically for one or

other manufacturer, or in come cases, designed specifically for a

single plant.

Nevertheless, a few specialities aside,

Kalla said the need for a global supply network is increasing, as car

makers and tyre makers seek the capability to deliver the same

products in every region of the world.

Asked about the position of S-SBR in

Asia, Kalla said there is a much more pressing need to increase

capacity for Nd-BR in Asia. There are a number of facilities which

can make S-SBR (although Lanxess has none at present), but none which

can make Nd-BR. As a consequence, Lanxess made the decision to put in

a plant for that material in to Asia. The table below shows that a

large volume of S-SBR will be available in the region within a few

years.

 -- more on this story in the coming issue of ERJ --