Asahi Kasei boosts S-SBR production capacity as market growth continues

Asahi-KaseiGlobal Japanese chemical company Asahi Kasei plans on boosting its solution-polymerized styrene-butadiene rubber (S-SBR) production capacity as part of the medium-term expansion strategy of its Performance Polymers Strategic Business Unit (SBU), according to the company’s recently released document regarding the Material Sector Business Briefing that was held on September 8, 2016.

Asahi Kasei’s synthetic rubber business includes S-SBR for high-performance and fuel-efficient tyres as well as elastomers, which are increasingly used for medical fluid bags and other medical devices.

S-SBR is mainly used in the tread of tyres, the part that comes in contact with the road. It affects mileage and is also related to wet grip or braking performance which affects safety.

According to the briefing, the S-SBR market has shown an annual growth rate of 9% from 2010 to 2015, and it is forecast to continue its growth at an annual rate of 7% to 8% in the following years.

In the last decade, tyre manufacturers have changed their requirements for the performance and tread compound design to provide more fuel-efficient and high-performance tyres for consumers.In addition to this, various labelling regulations that were introduced in Europe, Japan, South Korea, and China have resulted in higher demands for the synthetic rubber from global tyre manufacturers.

To continue meeting and even outpacing the growth in the global S-SBR demand, Asahi Kasei’s business strategy will be based on both technological development and supply capacity expansion.

The company’s domestic production capacity during 2012 was 140,000 tonnes per year. However, with the addition of the Singapore production lines, Line 1 and Line 2, the company’s capacity has grown to 240,000 tonnes per year.

Asahi Kasei is currently studying further expansions and reinforcements toward 2020.