Oświęcim, Poland – Synthos Group has completed the acquisition of Trinseo’s synthetic rubber assets in Schkopau, Germany, and is now targeting sustainability in its next phase of growth.
Following the €400-million purchase, Synthos’ SR production capacity increased to over 800,000 tonnes per annum, said the Polish materials supplier in a statement 1 Dec.
The rubber products include emulsion styrene butadiene, polybutadiene and solution styrene butadiene rubbers.
“The acquisition of the Schkopau plant is the largest transaction in the history of our company,” said Michał Sołowow, owner of Synthos Group..
“Synthos will strengthen its position in the global synthetic rubber market by becoming the second largest manufacturer in this segment,” he added.
More importantly, Solowow said the transaction brings “the most advanced product portfolio in the world” to Synthos, enabling it to supply materials for electric vehicle tiers..
Following the completion, Synthos said it expected synergy effects to result in operational and financial improvements at the Schkopau plant.
The Polish supplier anticipates the German plant to generate earnings (EBITDA) of “at least €80–100 million per year” after the acquisition, which compares against $41 million (€36 million) reported in 2019. The unit posted sales of $441 million in 2019.
Synthos also expects synergies of more than €20 million resulting from increased sales volumes.
The manufacturer aims to increase volumes through “more efficient use of production capacities, the introduction of new types of rubber grades to the product portfolio, and cost synergies.”
Furthermore, with an advanced research and development unit, the Schkopau facility will support Synthos’ strategy to develop product offering continuously.
The acquisition of the German plant is the largest part of Synthos’ planned investment of $1.2 billion by 2025, the Polish group said adding that it would “soon start” investing in a 120ktpa butadiene extraction plant in Płock.
Concurrent with the closing of the acquisition, Synthos said it had adopted a “sustainable development strategy”, including a goal to move completely away from coal as an energy source by 2028.
Furthermore, Synthos aims to reduce greenhouse gas emissions by 28% by 2030, en route to achieving zero carbon emissions by 2050, and producing “100% sustainable products” by 2030.
The company also plans to increase the share of renewable raw materials in its raw material base and reduce energy and utility consumption by 2030.