Dawn Polymer plans 25ktpa EPDM rubber expansion in China

Shanghai, China – Shandong Dawn Polymer Materials Co. plans to invest RMB500 million (€64 million) to expand EPDM rubber production through a 25 kilotonne per annum (ktpa) project at its majority-owned subsidiary Ningbo SK Synthetic Rubber Co.

In a 10 June stock exchange announcement, the Chinese materials producer said the investment is intended to “expand production capacity” and enhance “market competitiveness and profitability.”

The project, approved by Dawn’s board on 9 June, will be developed by Ningbo SK Synthetic Rubber Co., in which Dawn holds an 80% stake, and is expected to be completed over a two-year construction period.

According to the filing, the expansion in Ningbo will address ‘shortcomings’ in the local supply and ensure “supply chain security” of the new energy and advanced manufacturing sectors.

The group described EPDM as “an extremely important raw material” for the rubber products industry.

The rubber, it said, has features such as “excellent weather resistance, ozone resistance, electrical insulation, low compression permanent deformation, high strength and high elongation.”

The material is widely applied in automotive sealing strips, for which Dawn said demand has increased alongside the rapid growth of China’s automotive market.

Dawn said Ningbo SK has “more than 10 years of successful experience” operating EPDM facilities and plans to use reserved land at its existing plant to add capacity.

The filing also described EPDM as ‘a strategic material’ for new energy vehicles, photovoltaic applications, building waterproofing and wire and cable products, noting that high-end automotive and solar grades “still rely on imports.”

Referring to market conditions, Dawn said demand for EPDM has been driven by growth in electric vehicles, battery sealing applications and renewable energy, while supportive government policies and technological advances have created a “high-certainty” opportunity for expansion.