Synthetic rubber producer Synthos says that it will cease Emulsion-SBR (ESBR) production at its Kralupy plant in the Czech Republic in the second quarter of this year, citing the “unsustainable market environment for ESBR due to unpredictable costs in Europe that is forcing a permanent reduction in production capacity”.
Synthos had already announced last September that it was no longer able to operate its ESBR production at full capacity as unsustainable and unpredictable utility costs have led to an unsustainable market environment for ESBR for European producers; a direct result of the geopolitical situation and the Russian invasion of Ukraine.
Against this backdrop, and given predictions that gas price volatility will continue, the company has now taken the decision to indefinitely cease production of ESBR at its production facility in the Czech Republic and to reduce its annual ESBR capacity from 430,000 to 320,000 tonnes.
Despite this reduction, Synthos says it remains the largest producer of ESBR in Europe and will continue to carefully monitor the development of utility and feedstock costs in Europe and the related competitiveness in the global market environment.
“After careful consideration, particularly in light of expert forecasts on the cost situation of the chemical industry in Europe, we will not be able to continue operating our ESBR plant in the Czech Republic. Such a decision is not made easily, because without the employees of the ESBR plant in Kralupy we would not be the company we are today. That is why we will do everything possible to ensure that as many employees as possible can find jobs in other departments at the Kralupy plant.” – explains Matteo Marchisio, Business Unit Director, Synthetic Rubber. “It goes without saying that our customers are equally important. Our transition plan ensures a smooth transition for our customers, whom we will supply from one of our other ESBR plants in Europe.”
This decision does not affect Synthos’ production and development of SSBR, BR, ESBR, NBR and HSR, at our manufacturing sites in Poland and Germany and to the production of butadiene rubber (BR) in Kralupy, Czech Republic.