Goodyear claims it can substitute 15 percent of NR with synthetics

Akron, Ohio - The Goodyear Tire & Rubber Company says it can freely replace more than 15 percent of its natural rubber usage with synthetic materials without impacting tyre performance.

The company said it began seeking new substitution options in 2004 as NR prices started to rise and has since then developed proprietary polymers and rubber compounds at its technical centres in Akron and Luxembourg.

The International Rubber Study Group estimates that the tyre industry's substitution capability is less than 8 percent. Tyre makers, according to the IRSG, consume about 70 percent of the world's natural rubber production.

Joseph Gingo, Goodyear's executive vice president, quality systems and chief technical officer said, "new polymer development is ongoing, but the supply/demand volatility - which even in 2004 showed no signs of subsiding - created a sense of urgency for our research and development team," he said. "Their fast work is contributing to the success of our tyre businesses by providing flexibility with high quality."

While Goodyear's developments will not reduce its total raw material costs, it provides the opportunity to reduce the rate of increase, said the company.

"They do not eliminate our raw material cost concerns, but they do give us greater flexibility in the event of further natural rubber price increases or supply disruptions and can provide a competitive advantage," Gingo said.

Prices for natural rubber have increased significantly in recent years and are above $2/kg, a 20-year high. Synthetic rubber has also increased in price, according to IRSG data, but remains more economical than natural rubber.

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Press release from Goodyear

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