Madrid – Repsol and Grupo Kuo have agreed to extend their Dynasol joint venture with the aim of making it a top 10 player in the global synthetic rubber (SR) market. The agreement is subject to regulatory approvals, said a 27 April release.
Under the strategic deal, Dynasol will focus particularly on developing products for the high-performance tire sector, which currently accounts for 70 percent of SR demand worldwide.
Spanish group Repsol and Kuo of Mexico have been equal partners in Dynasol since 1999. The JV claims to be the world's second largest producer in asphalt modification and a leader in other applications such as adhesives, sealants, and technical compounds.
Dynasol has facilities in Altamira, Mexico, and in Santander, Spain and will open a new plant in Liaoning, China within the next two months.
As part of the new deal, Kuo will provide Dynasol with its SR solution and nitrile rubber units in Altamira, Mexico, and China as most of its production is allocated to the tire industry. Repsol will contribute its rubber vulcanisation accelerators unit, General Química, located in Álava, Spain.
The deal modifies an existing shareholders agreement for the integrated joint management of Dynasol, which will ne headquartered in Madrid. The JV will have operations centres in Spain, Mexico, and China as well as offices in these countries and the US.
Dynasol will produce over 500 kilotonnes a year of material, and will expand its range of products using its own technologies.
With estimated revenues of $750 million, the venture is to become a major player in high-growth markets such as Latin America, North America, and China, according to the release.
The move "will make Dynasol an important player in the high-performance tire market, and we will significantly increase our production capacity and supply to our chemicals division," said Antonio Brufau, Repsol's chairman.