Q&A: Denka tracks elastomer business trends

In this interview, ERJ asks Katsuhiro Saito, responsible for global sales and marketing for Denka CR about current developments (see panel) at the company’s chloroprene rubber and other speciality elastomer businesses

ERJ: Apart from butadiene, what other raw materials costs are affecting Denka’s acetylene-based chloroprene rubber (CR)?

KS: The main raw materials of our acetylene-based CR are chlorine and calcium carbide based on lime and carbon recourse. In addition to them, electric power is the key cost driver.

Denka’s advantage is having its own lime-mine and power plants to grant a more stable cost-structure to its product than butadiene-based CR.

ERJ: Please explain developments at the Denka Performance Elastomers (DPE) plant in Laplace, Louisiana since last year’s ‘cold wave’?

KS: The ‘cold wave’ was the severest winter in the last 30 years in Louisiana in January, 2018. Pipes were frozen at our La Place plant. It has since recovered and been operating at full steam [meeting] strong CR demand.

ERJ: We were really interested in Denka’s comment that the popularity of electric vehicles (EVs) will impact rubber sales. Can the company give more details about which rubber materials and/or rubber parts will be affected by the EV trend and over what timescale?

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