Synthos announces its plan to invest in Brazil
Synthos S.A. is planning to build a neodymium polybutadiene rubber plant in Triunfo Petrochemical Complex in Rio Grande do Sul.
Synthos S.A. is planning to build a neodymium polybutadiene rubber plant in Triunfo Petrochemical Complex in Rio Grande do Sul. The investment will be carried out provided that the 2013 contracts on raw material supplies will come into effect.
Upon the implementation of those contracts, the company will build a modern production plant producing neodymium polybutadiene rubber (NdBR) used to manufacture high-performance car and truck tires and various technical rubber products. The plant capacity will reach 80,000 tonnes per year, which will result in a huge production growth of elastomers in Brazil and will replace a significant part of the current import.
“Considering the growing demand for synthetic rubber in Brazil and other South American countries, we will not aim at replacing the local production, but try to substitute the import into the region,” said Tomasz Kalwat, CEO, Synthos S.A.
The production of polybutadiene rubber in Brazil will be based on the license granted by Michelin.
Synthos has signed contract agreements with tire manufacturers Michelin and Pirelli regarding the supply of NdBR to their facilities in Brazil.
The time remaining until the implementation of contracts will be dedicated to the preparation of the necessary documentation (including project documents) without incurring substantial financial liabilities.
Brazil is the world’s seventh economy and the largest economy in South America. It is one of the emerging markets with high growth potential. Synthos S.A. continuously emphasises its presence on that market. In 2012, our rubber export to South America amounted to 3.3%, and in 2013 it reached 6.3%.
According to the Polish Foreign Market Research Lab, in the first three quarters of 2013, the sales of tires for new cars in Brazil increased by 9%. The replacement tires market increased by 11% as compared to the previous period. Thus, the Brazilian market and other South American economies are highly attractive.
- SYNTHOS S.A.