While the natural rubber industry tries to get its act together, synthetic rubber is cashing on its green outlook, nourished with ample applications in the automotive sector. German speciality chemicals firm Lanxessexplains why its innovations and technologies could address tomorrow’s mobility challenges.
A beaming Dr. Ron Commander stepped up on the stageat this year’s World Rubber Summit, an exclusive summit for the global rubber community held in Singapore from 23-24 May. Bringing great tidings, the Head of Lanxess’ Butyl Rubber Business Unit began his speech with a statement – that the future of synthetic rubber is bright.
Acknowledging some challenges in the industry, Commander shared the company’s sustainable actions to override the rising cost of raw materials. “Although it’s good to review broad economic trends, the best way to gauge synthetic rubber’s future is to look closely at the innovations and new technologies that are beginning to happen right now,” he said.
The company is the world’s largest net purchaser of petroleum-based butadiene and isobutene, which is essential for high-performance rubber.
Dr. Ron Commander shares the company’s recent developments in synthetic rubber during the World Rubber Summit held at Raffles City Convention Centre, Singapore.
“Today, thanks to the volatile market, we are now actively exploring non oil-based material at Lanxess,” he announced. For the past few years, the company has made progress in biobased rubbers and anticipates the future by complementing it with its portfolio of petroleum-based products.
“We’ve made investments of about SG$34 million in the development ofbiobased isobutene. We have developed a dehydration process that converts that isobutanol (from corn) to isobutene.”
The firm is also the first to launch a biobased EPDM rubber branded as Keltan Eco. It contains up to 70% sugarcane-based ethylene. The firm also says the carbon in Keltan Eco coming from sugar cane can be traced back, as proven by measuring isotope C-14 according to the ASTM D6866 testing standard.
Aside from raw material costs, Commander cited environmental changes as another challenge that needs to be addressed. “We anticipate problems before they gather steam and use specific technologies to solve them.”
Climate change represents one of the greatest environmental problems. It is the direct result of CO2 emissions from human activity. In the automotive field, tyres are among the areas that have potential for fuel and carbon savings.
Lanxessproduces materials solution for the production of green tyres. The company produces 800,000 tonnes of synthetic rubber/year with roughly 70% of itgoing to tyre compounds.
Its neodymium-catalysed butadiene rubber(Nd-BR) is used for the treads and sidewalls of green tyres whilecarboxylated styrene-butadiene rubber (XSBR) is used for tread compounds to improve wet grip. According to Commander, green tyres can reach its peak performance with formulations containing these solutions.
“Years ago, researchers were lamenting that it is impossible to reduce a tyre’s rolling resistance without sacrificing wet grip and durability. Fortunately, we stopped lamenting and started innovating,” kidded Commander.
He explained that a tyre’s rolling resistanceaccounts for 20% to 30% of a car’s fuel consumption. “In the 90s, carbon black with silica fillerswas used to improve wet grip and efficiency in tyres. That’s the first generation of the so-called green tyres. Recently, we discovered that Nd-BR, in combination with XSBR and rubber additives, could allow tyre manufacturers to further expand the magic triangle of wet grip, durability and rolling resistance. The result significantly advanced green tyre technology.”
Green tyres can help reduce 5% to 7% of fuel consumption without sacrificing safety and durability.
Still not resting on its laurels, Lanxess believes it is possible to achieve a further 10% reduction in rolling resistance using the advanced materials and concepts that are currently available in the market.
“We can create stronger bonds between rubber molecules and filler particles in tyres. By increasing the number of circle groups and actively tying the polymer to the silica particles, I thereby believe that we can reduce internal friction and heat blast caused by the tyre.”
“I believe it is the future of our industry, green tyres has been taking advantage of a megatrend within a megatrend,” affirmed Commander.
Growing mobility to fuel demand
Among the megatrends cited is rapidly growing mobility. About 85% of this mobility growth will come from BRIC countries. In China alone, there are about 225 million vehicles and by 2030, 800 million Chinese people will achieve middle-class status. And this rising prosperity will leadto the human desire to own a car.
Asia Pacific is still by far the largest regional market for rubber forLanxess. In 2011, Asia Pacific accounted for 23% of group sales and 54% of butyl rubber sales. Latin America, meanwhile, accounted for 14% of group sales.
“The megatrend within that mobility surge is the demand by governments and citizens to reduce fuel consumption and CO2 emissions. This has been a major global challenge; governments are demanding car makers and tyre manufacturers take action,” explained Commander.
Today, there are more than a billion cars and trucks being used globally. Global Insights, an economic forecasting company projected 3 billion vehicles on the road by 2035.
“That is all good news for synthetic rubber. The number of vehicles will triple and those vehicles will need fuel-saving tyres. Synthetic rubber is clearly in the right place,” he said.
In China, wherein it represents a large market for automotives, policies have specifically statedthat the government will vigorously promote energy conservation and comprehensive utilisation of resources.
According to Commander, the 12thfive-year plan of China sets an ambitious goal of reducing CO2 emission per units of GDP by 40% to 45% by 2020. Carbon emission reduction is not only a priority in China but across the globe. Governments in the US, Brazil, European Union, Japan, South Korea and India have made clear targets to reduce CO2 emissions by 2020.
The EU for instance is calling for 21% reduction of CO2 emissions of newly registered vehicles by 2020. This November, tyre labelling in EU will take effect and by 2014, all new vehicles should be equipped with new tyres, and only those with approved tyres can be sold.
A green tyre is estimated to cost between EUR20 to EUR50 more than a conventional tyre and in two years, four green tyres can save an average driver (12,500 km per year) up to EUR100 in fuel, according to a study commissioned by the EU.
As to an EU tyre label, Commander explained how the label is 100% transparent in showing which parts may suit or may not suit customers’ needs. He believes that safer, quieter and more fuel efficient tyres will dominate the market in the future with or without legislation.
Ample supply ahead
Lanxess is making serious efforts to meet future demand.The company has just started up on schedule a nitrile butadiene rubber (NBR) plant in Nantong, China, as part of its 50:50 joint venture with Taiwan’s TSRC Corp.The two companies have jointly invested EUR39 million in the new plant, which has a yearly capacity of 30,000 tonnes.
“The plant is the most modern of its kind in Asia, and will address the needs of the rapidly growing Chinese market,” said Commander. Built on an area of around 40,000 sq m in Nantong Economic and Technological Development zone in Jiangsu province, the plant will produce the highest form of NBR that is claimed to have a higher resistance to oil than conventional rubbers.
In Singapore, Lanxessis building its largest butyl rubber plant in Jurong Island. The facility, estimated to be worth SG$650 million, will go on stream in Q1 2013 with 100,000 tonnes/year capacity.
Later this year, the company will also break ground for a new plant for Nd-PBR also in the same location. The facility, worth SG$325 million, will go on stream in H1 2015 with a capacity of 140,000 tonnes of Nd-PBR.
Commander cites excellent infrastructure, access to raw materials and highly skilled workforce and location to the sea port as the main reasons for choosing Singapore as its facility site.
He further adds that they are also busy ramping up capacities in almost all the facilities. In Germany, US and Brazil, the company has already invested EUR30 million to increase capacity to 65,000 tonnes/year of Nd-PBR.
In Zwijndrecht, Belgium, it has increased capacity of its facility to 10% to reach 150,000 tonnes/year of regular butyl and halobutyl synthetic rubber per year. It also built two new pilot plants at the same location for the development of its butyl rubber technology. All this activity should thrust Lanxess in the synthetic rubber sector limelight.
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