Synthos, Michelin expand Nd BR tire rubber agreement

Oświęcim, Poland – Synthos SA and Groupe Michelin have recently signed a licencing agreement allowing the chemicals group to increase the production capacity of its neodymium polybutadiene rubber (Nd BR rubber) plants in the Czech Republic.

The deal will allow the Polish chemical group – as licensee – to increase Nd BR capacity at the facilities to 132 kilotonnes per annum (ktpa) from 80ktpa currently, according to a 22 March statement from Zbigniew Warmuz, CEO of Synthos.

The memorandum of agreement, signed on 26 Aug 2016, builds on a 2007 licensing agreement from 2007. It was entered into with licensors: Compagnie Générale des Etablissements Michelin of Clermont-Ferrand, France; and Michelin Recherche et Technique SA, based in Granges-Paccot, Switzerland.

Synthos did not give details of cost for extending the license but said it comprised a flat fee and a variable component in the form of royalties depending on the sales volume of the licensed products.

Warmuz’s comments accompanied Synthos financial statement for the 12 months to 31 Dec 2016, which showed a 17% year-on-year rise in group sales to PLN4,775 million (€1,118 million) but operating profit flat at PLN387 million.

The 2016 results include a strong performance for Synthos’ synthetic rubber business which increased operating profit by 20% year-on-year to PLN275 million on sales 14% higher at PLN2,146 milion.

Synthos linked the gains to growth in the European tire market. In 2016, it noted, 206.7 million consumer replacement tires for passenger cars, SUVs and trucks up to 3.5 tonnes were sold in the EU – 1.9% more than in 2015.