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Tire & Rubber Chemical Industry News

We track rubber chemical industry market trends using a wide range of industry sources. Optimum market insight is achieved by combining public information with RCCL's extensive range of confidential information which is pooled together using RCCL's proprietary database and reporting systems.

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Industry News

Period:
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July (2020)

Avon Rubber p.l.c: Agreement to Divest Milkrite  Link...

Avon Rubber has signed an agreement to sell Milkrite InterPuls to DeLaval Holding BV. The transaction is expected to be complete by Q1 2021. Following completion, Avon Rubber will focus solely on its Avon Protection business, which is recognised as a global leader in respiratory and ballistic protection in Military and First Responder markets.


CooperStandard: Finalises Divestiture of Certain Operations in Europe and India  Link...

Cooper-Standard Holdings has completed the divestiture of its European rubber fluid transfer and specialty sealing business, as well as its Indian operations to Mutares SE & Co. KGaA.

The transaction includes two manufacturing facilities in Poland, one manufacturing facility in each of Spain and Italy, and all of the Company's operations in India, excluding the Company's corporate IT development office located in Chennai.

The divestiture of non-core operations will enable Cooper-Standard to improve profitability and focus resources in areas with greater potential for profitable growth.


PolyOne Corporation: Completes Clariant Masterbatch Acquisition and Annonces New Name: Avient Corporatioin  Link...

PolyOne Corporation has completed the purchase of the colour masterbatch businesses of Clariant and Clariant Chemicals India Ltd. PolyOne has now changed its name and will now be called Avient.


June (2020)

Cabot Corporation: Completes Placement of Major Air Emission Control Equipment at Franklin, Louisiana Plant  Link...

Cabot Corporation has now received and sited all major emission control equipment covering the EPA national enforcement inititative at its Franklin plant. The project is on track to meet the EPA April 2021 deadline.

The project at the Franklin site will reduce NOx emissions by 90% via the use of selective catalytic control and SO2 emissions by 95% using wet gas scrubbing. These technologies are in use a several of Cabot's sites across the globe. Annual emissions of NOx and SO2 will be reduced about 900 and 6500 tons per year at the Franklin site.

The project at Franklin builds on Cabot's earlier emissions control project at its plant in Pampa, Texas. Work at this plant was completed in 2017, reducing NOx emissions by 67% which adds up to nearly 1500 tons of saved emissions over the last three years.


Apollo Tires: Commissions New Plant in Andhra Pradesh, India  Link...

Apollo Tyres has commissioned its fifth manufacturing plant in India, bringing the global total to seven. The plant is located in Chinnapanduru village in Chittoor district of Andhra Pradesh. Capacity will be ramped up gradually in the next 12 to 18 months with a planned final 2022 capacity of 15k PCR and 3k TBR. The plant utilises the latest manufacturing technology and is targetting premium OEMs and RP market customers in India.


Phillips Carbon Black Ltd: 2019 FY and Q4 Results  Link...

Phillips Carbon Black Ltd (PCBL) produce furnace carbon black and also cogenerate electricity using the waste gas from the carbon black process. PCBL report in two segments: Carbon Black and Power, the Power segment sells back to the Carbon Black segment as well as supplying surplus electricity for external sale. All quarterly results are unaudited. Results are reported based for the period in question with no currency adjustments between reporting periods. Currency values reported in: Millions of INR

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue201931570.634311.1-8.0
Carbon BlackEBIT20194678.26190.3-24.4
PowerSales Revenue20191517.81629.9-6.9
PowerEBIT2019990.51089.1-9.1
Carbon BlackSales Revenue2019/46801.09005.7-24.5
Carbon BlackEBIT2019/41030.61511.4-31.8
PowerSales Revenue2019/4364.3392.1-7.1
PowerEBIT2019/4233.3256.0-8.9


Continental Rubber Group: Tire Group Creates New Sustainability Department  Link...

As of April 1, 2020 Claus Petschick heads up the newly formed sustainability department responsible for the strategic direction and worldwide steering of all sustainability projects forming part of the company's Vision 2030 strategy program.The program focuses on the four strategic topics of climate change mitigation, clean mobility, circular economies, and sustainable supply chains. In order to make the tires of the future even more energy-efficient and environmentally friendly in terms of production, use and recyclability, Continental is systematically investing in the research and development of new technologies, alternative materials, and environmentally compatible production processes.


PolyOne Corporation: Expanding Sustainability Portfolio in Europe  Link...

PolyOne is adding production of both post-industrial recycled nylon grades (Nymax™ PIR) and bio-based thermoplastic elastomers (reSound™ OM) in Europe. This strengthened sustainability portfolio will support circular economy goals and provide additional eco-conscious material options for EU customers.

The EU has about 25 percent of global bioplastics production, which is set to increase to 30 percent by 2024, this growth is being driven by industry commitments to use more recycled plastics.

Nymax™ PIR post-industrial recycled nylon contains between 20 and 100 percent post-industrial nylon materials and offers comparable performance to prime nylon grades for use in automotive, outdoor and industrial applications.

reSound™ OM TPE utilises between 40 and 50 percent bio-renewable content derived from sugarcane offering equivalent performance to standard TPEs for use in cosmetics, personal care and consumer electronics.


EHS: European Chemicals Agency - Resorcinol Finding  Link...

The European Chemicals Agency Member State Committee (MSC) did not agree to identify resorcinol as a substance of very high concern (SVHC) due to its endocrine-disrupting properties. The Commissions's REACH committtee will now make the final decision.

The MSC did not unanimously support France’s proposal to identify resorcinol (EC 203-585-2; CAS 108-46-3) as an SVHC. However, the committee acknowledged that there is scientific evidence that resorcinol is an endocrine disruptor as defined by the World Health Organization (WHO)


Prime Polymer Co Ltd: Opens First PP Compounding Plant in Europe  Link...

Mitsui Chemicals Inc and Prime Polymer Co have begun operations at Mitsui Prime Advanced Composites Europe BV, a joint venture also including Mitsui & Co Ltd. This puts in place an integrated European system for research, manufacturing and sales.


Tosoh Silica Corporation: Establishing Precipitated Silica Joint Venture with Namhe Chemical Corporation  Link...

Tosoh Silica Corporation, a member of the Tosoh Group, is establishing a joint venture with Namhae Chemical Corporation to construct a precipitated silica base in Yeosu, South Korea targetting use in fuel-efficient tires.


Mesnac: Subsidiary Ecombine Constructing 300 kMTpa Liquid Phase Mixing Facility  Link...

Mesnac's subsidiary Ecombine Advanced Materials has started construction of a 300 kMTpa liquid phase mixing facility in Qingdao, China. Liquid phase mixing is targeted at producing silica reinforced compounds for tire tread applications. Production of over 200k tires at multiple tire manufacturers has reportedly proven the advantages of this technology, with improvements in wear, rolling resistance and wet grip.


May (2020)

BASF: Starts Construction of TPU Plant, Zhanjiang, China  Link...

BASF has started construction of an engineering plastics and TPU production unit within its new Verbund project in Zhanjiang, Guangdong, China. This production unit is the first plant to be built in the Verbund project serving the needs of growth industries in APAC.


ZF Group: Completes WABCO Acquisition  Link...

ZF Friedrichshafen AG has successfully completed the acquisition of commercial vehicle technology supplier WABCO. With the addition of WABCO, ZF’s focus will be on expanding its commercial vehicle service portfolio and on operating customer business. WABCO will operate as an independent division, Commercial Vehicle Control Systems, within ZF Friedrichshafen AG and become the tenth division of the Germany-based technology company.


Orion Engineered Carbons: Breaks Ground on New Logistics Center in Cologne, Germany  Link...

Orion Engineered Carbons is building a new logistics center at its largest manufacturing plant in Cologne, Germany. When complete the warehouse will have a capacity of about 12400 pallets. The Cologne production facility produces 160 kMTpa of more than 100 differentiated products requiring dedicated handling and logistics. The facility is due to be commissioned in December of this year.


Thai Carbon: 2019 Full Year and Q4 Results  Link...

Thai Carbon report in one segment: Carbon Black. Currency values reported in: Millions of THB

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue20197494.08550.2-12.4
Carbon BlackEBIT20191464.01689.7-13.4
Carbon BlackSales Revenue2019/41747.02194.7-20.4
Carbon BlackEBIT2019/4266.0470.7-43.5


RCCL News:

New Report - Furnace Carbon Black Market Pricing May 2020  Link...
furnace carbon black may 2020 pricing

Rubber Chemical Consultants Ltd (RCCL) a provider of client driven, bespoke rubber chemical market insight projects and reports is pleased to announce that its May 2020 Furnace Carbon Black Market Pricing report is now available.

This report provides detailed historic, current and future market pricing for representative reference grades produced within the regions of China, Europe and North America. Short term and long term market outlooks are provided as well as the weighted average pricing for each of the three regions. The impact of COVID-19 has been incorporated into the market demand analysis.

This report is available as a package deal with RCCL's Furnace Carbon Black Industry & Markets 2020 report which will be published in June 2020.

Find out more »


Tire Sector: EU Tire Labelling: European Commission Adopts New Tire Labelling Regulation  Link...

The EU Commission has adopted a proposal for new regulations on tire labelling for the purposes of fuel efficiency, safety and noise reduction. This would replace the 2009 Tire Labelling Regulation (TLR), while maintaining and reinforcing most of its key provisions.

The tyre label is currently applicable to passenger and light-duty vehicles, in future it would also apply to heavy-duty vehicles. The new label would include visual information on tyre performance in snow or ice conditions, and could be adjusted by means of delegated acts to include information on mileage, abrasion or re-studded tyres.


TRADE: Indian Government Reviewing Chinese and Russian Carbon Black Imports  Link...

The Indian government is reviewing anti-dumping measures for Chinese and Russian carbon black imports for use in rubber applications. The period for investigation is April 2019 to Dec 2019 with the injury period being FY 2016/17/18/19.


Tire Sector: Coronavirus (COVID-19) Global Impact Summary to 15th May 2020  Link...

Update of reported global impacts through 15 May 2020.

RCCL has summarised the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry/market trends are being used to generate short (quarterly), medium and long term outlooks.

RCCL prepared preliminary market estimates for the Chinese rubber industry at the end of April - an overview is presented in our April 2020 quarterly newsletter.

Detailed market estimates for China, Europe and NAFTA are included in our Furnace Carbon Black Pricing report which is due to be published 22 May 2020.

Analysis will be extended to global coverage by analysing all major regions. This will be included in our Furnace Carbon Black Industry & Markets 2020 report which will be published early June 2020.

Other analysis focusing on specific segments and/or chemicals can be arranged on a client basis - please contact us for details.


RCCL Industry Analysis:

Analysis Snippet: Tire Sector Coronavirus (COVID-19) Global Impact




Auto Sector: Coronavirus (COVID-19) Global Impact Summary to 15th May 2020  Link...

Update of reported global impacts through 15 May 2020.

RCCL has summarised the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry/market trends are being used to generate short (quarterly), medium and long term outlooks.

RCCL prepared preliminary market estimates for the Chinese rubber industry at the end of April - an overview is presented in our April 2020 quarterly newsletter.

Detailed market estimates for China, Europe and NAFTA are included in our Furnace Carbon Black Pricing report which is due to be published 22 May 2020.

Analysis will be extended to global coverage by analysing all major regions. This will be included in our Furnace Carbon Black Industry & Markets 2020 report which will be published early June 2020.

Other analysis focusing on specific segments and/or chemicals can be arranged on a client basis - please contact us for details.


RCCL Industry Analysis:

Analysis Snippet: Global Automotive Industry Coronavirus COVID-19 Impacts




H&R Group: 2020 Q1 Results  Link...

H&R GmbH produce speciality chemical products using state-of-the-art refineries and processes. Products include plasticisers, white oils and paraffins as well as precision plastic products. Rubber Chemical Consultants tracks H&R GmbH consolidated results, in 2017 the refining and sales segment accounted for approximately 94% of total revenue, the plasticiser share was approximately 27% of sales revenue in previous years. Currency values reported in: Millions of EUR

SegmentParameterPeriod20202019YoY, %Notes
All SegmentsSales Revenue2020/1259.4286.1-9.3
All SegmentsEBITDA2020/110.720.1-46.8
All SegmentsEBIT2020/1-2.09.4-121.3
All SegmentsNet Margin2020/1-4.25.2-180.8


Kolon Industries: 2020 Q1 Results  Link...

Kolon Industries reports operations in five segments. The Chemical Segment contains the company's hydrocarbon resin activities, where tire resins are a minor component. Rubber Chemical Consultants tracks the company results and the Chemical Segment results. Currency values reported in: Millions of KRW

SegmentParameterPeriod20202019YoY, %Notes
All SegmentsSales Revenue2020/1898000.01058000.0-15.11
All SegmentsEBIT2020/127000.049000.0-44.9
ChemicalsSales Revenue2020/1210000.0189000.011.12
ChemicalsEBIT2020/120000.021000.0-4.8


Thai Lube Base PCL: 2020 Q1 Results  Link...

Thaioil is Thailand's largest refinery and supplier of petroleum products. Thaioil reports in four segments: Oil Refinery, Petrochemical & Lube Base Oil, Power Generations & Transportation & Others. Rubber Chemical Consultants Ltd tracks Thaioil's Petrochemical Segment which reports the Lube Base Oil results separately. The Lube Base oil segment produces Lube Base Oil, Bitumen and TDAE process oil. Currency values reported in: Millions of THB

SegmentParameterPeriod20202019YoY, %Notes
All SegmentsSales Revenue2020/13879.04704.0-17.51
All SegmentsEBITDA2020/1379.096.0294.82
All SegmentsNet Margin2020/1284.056.0407.13


Cabot Corporation: 2020 Q2 Results  Link...

Cabot Corporation: Reinforcing volumes for Q2 (ending March 2020): Asia -20%; EMEA -13%, Americas -8%. Cabot focusing on working capital efficiency and cost reduction measures, while reducing capital spending to $200 million for the year. A pronounced COVID-19 effect is expected on fiscal third quarter results.

Cabot Corporation operate in four segments: Reinforcement Materials, Performance Chemicals, Purification Solutions and Speciality Fluids. RCCL tracks performance in the Reinforcement Materials (rubber carbon blacks) and Performance Chemicals (specialist carbon blacks, plastic compounds, metal oxides). EBIT/EBITDA figures for carbon black in the performance chemical segment use RCCL estimates. RCCL also estimates performance for total carbon black based on annual results. Currency values reported in: Millions of USD

SegmentParameterPeriod20202019YoY, %Notes
Carbon BlackSales Revenue2020/2523.0624.0-16.21
Carbon BlackEBIT2020/282.387.8-6.3
Rubber BlackSales Revenue2020/2355.0445.0-20.2
Rubber BlackEBITDA2020/278.078.0.0
Rubber BlackEBIT2020/261.061.0.02
Rubber BlackSales Vol YoY %2020/286.099.0-13.13
Specialist BlackSales Revenue2020/2168.0179.0-6.14
Specialist BlackEBIT2020/221.326.8-20.65
Specialist BlackSales Vol YoY %2020/2106.099.07.1


Nynas: Exits US Sanctions  Link...

The US Treasury Department's Office of Foreing Asset Control (OFAC) announced that Nynas is no longer being blocked pursuant to the Venezuela Sanctions Regulations. As a result of a corporate restructuring of the ownership of Nynas AB sanctions are lifted, and US persons and companies no longer require an authorization from OFAC to engage in transactions or activities with Nynas AB. As a consequence, general license GL 13E is removed.

The US sanctions ultimately forced Nynas into reorganisation at the end of last year - the focus moving forwards is to complete the ongoing reorganisation process and return to normal trading conditions with associated long-term financing.


Tokai Group: 2020 Q1 Results  Link...

Tokai Carbon Co Ltd operates in five reporting segments one of which is carbon black. Tokai carbon produce carbon black in Japan, Thailand and China. Tokai acquired Cancarb (which produces thermal carbon black) in 2014 and also acquired Sid Richardson (a furnace carbon black manufacturer with three US production facilities) mid 2018. RCCL tracks Tokai's carbon black segment. Currency values reported in: Millions of JPY

SegmentParameterPeriod20202019YoY, %Notes
Carbon BlackSales Revenue2020/121030.027308.0-23.01
Carbon BlackEBIT2020/11741.03424.0-49.22


Arakawa Chemical Industries: 2019 FY and Q4 Results  Link...

Arakawa Chemical Industries: Profitability in the adhesive busness continued to deteriorate due to weakening of supply and demand balance in the market. The group as a whole, continued domestic and overseas operations up to end of FY, however the customer base was starting to see severe downward trends.

Arakawa Chemical Industries reports in four segments. Rubber Chemical Consultants tracks results for all segments as well as those for the Adhesive segment which contains products for the tire and rubber industry. Currency values reported in: Millions of JPY

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue201972965.079500.0-8.2
All SegmentsEBITDA20195461.06435.0-15.1
All SegmentsEBIT20192574.03564.0-27.8
All SegmentsNet Margin20191731.03889.0-55.5
AdhesivesSales Revenue201925836.027697.0-6.7
AdhesivesEBIT20191047.01750.0-40.2
All SegmentsSales Revenue2019/417856.018967.0-5.9
All SegmentsEBITDA2019/41209.01284.0-5.8
All SegmentsEBIT2019/4500.0467.07.1
All SegmentsNet Margin2019/4227.0345.0-34.2
AdhesivesSales Revenue2019/46249.06481.0-3.6
AdhesivesEBIT2019/474.0188.0-60.6


Orion Engineered Carbons USD: 2020 Q1 Results  Link...

Orion Engineered Carbons: During the quarter all plants including China, Korea and Italy were operational. Significant employee flexibility allowed operational and safety improvements in the face of changing demand. Orion are currently operating numerous reactors in ‘agile campaign mode’ running for several weeks to restock inventories, and then shutting down the reactors while continuing to ship. This mode minimizes costs while supporting customers as they gradually increase their production.

Orion Engineered Carbons manufactures furnace carbon black as well as thermal, gas, lampblack and acetylene blacks and is the third largest carbon black producer on a global basis. Orion reports results in two segments: Specialist and Rubber. Rubber Chemical Consultants tracks the two segments as well as the overall company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20202019YoY, %Notes
Carbon BlackSales Revenue2020/1336.0384.7-12.7
Carbon BlackGross Margin2020/190.297.7-7.7
Carbon BlackadjEBITDA2020/163.864.6-1.2
Carbon BlackEBITDA2020/161.458.84.4
Carbon BlackEBIT2020/137.534.58.7
Carbon BlackSales Vol MT2020/1235100.0262800.0-10.5
Rubber BlackSales Revenue2020/1216.2253.1-14.61
Rubber BlackGross Margin2020/150.556.6-10.8
Rubber BlackadjEBITDA2020/135.835.21.72
Rubber BlackSales Vol MT2020/1176800.0198800.0-11.13
Specialist BlackSales Revenue2020/1119.8131.6-9.04
Specialist BlackGross Margin2020/139.741.4-4.1
Specialist BlackadjEBITDA2020/128.129.4-4.4


Evonik Industries: 2020 Q1 Results  Link...

Evonik Industries: Solid Q1 performance. All larger plants running with limited impact on supply chains. Reporting segment changes for 2020 announced in strategy document.

Evonik currently reports in four segments. The silica and silane activities reside in the Resource Efficiency segment. Rubber Chemical Consultants tracks the Resource Efficiency segment. Note: Prior year values are unadjusted values for the given period. Currency values reported in: Millions of EUR

SegmentParameterPeriod20202019YoY, %Notes
Resource EfficiencySales Revenue2020/11437.01399.02.71
Resource EfficiencySales Vol YoY %2020/197.098.0-1.02


CooperStandard: Agrees to Divest Certain Operations in Europe and India  Link...

Cooper-Standard Holdings Inc has signed an agreement to divest its European rubber fluid transfer and speciality sealing businesses as well as its Indian operations to Mutares SE & Co. KGaA.

The agreement includes approximately 2,500 employees and two manufacturing facilities in Poland, one manufacturing facility in both Spain and Italy, and all of the Company's operations in India, excluding the Company's corporate IT development office located in Chennai. Completion is expected by end of second quarter 2020.


Solvay: 2020 Q1 Results  Link...

Solvay changed their reporting segments at the end of 2019. The new Chemicals segment now includes precipitated silica (along with soda ash and derivatives, peroxides and coatis), silica was previously in the Advanced Materials segment. Rubber Chemical Consultants track the Chemicals segment which includes Solvay's precipitated silica operations. Currency values reported in: Millions of EUR

SegmentParameterPeriod20202019YoY, %Notes
ChemicalsSales Revenue2020/1800.0831.0-3.71
ChemicalsadjEBITDA2020/1239.0226.05.8
Precipitated SilicaSales Revenue2020/1111.0113.0-1.8


Eastman: 2020 Q1 Results  Link...

Eastman: Robust results in a challenging environment due to diverse market coverage. Prospects for Q2 sales revenue: highly impacted sectors (auto, tire, aviation) will be down about 40%, mixed impact sectors (construction, durables, electronics, industrial chemicals) will be down about 15% with resilient sectors (consumables, medical, food, personal care, water treatment, tabacco) at similar prior period levels.

Eastman operate in four reporting segments. Rubber Chemical Consultants tracks Eastman's Additives & Functional Products (AFP) segment which contains tire related materials (resins, antidegradants and sulphur) and also tracks the company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20202019YoY, %Notes
All SegmentsSales Revenue2020/12241.02380.0-5.81
All SegmentsEBIT2020/1368.0320.015.0
All SegmentsNet Margin2020/1258.0209.023.4
Additives Functional ProductsSales Revenue2020/1822.0855.0-3.92
Additives Functional ProductsEBIT2020/1143.0146.0-2.1


Chroma Color Corporation: Closing Recently Acquired Calumet City Operations  Link...

Chroma recently completed significant investments at multiple manufacturing sites and has announced the transition of all production from its Calumet City, IL location to other Chroma Color manufacturing sites. The Calumet facility was part of the January 2020 acquisition of Plastics Color Corporation, the remaining parts of the acquisition will be renamed to Chroma Color Corporation.


Trinseo S.A.: To Acquire Vinyl Pyridine Latex Business from Synthomer plc  Link...

Trinseo has completed the acquisition of the vinyl pyridine latex (VP latex) business from Synthomer plc. VP latex is an essential ingredient in binders for coating tire cord fabrics, ensuring a strong bond between the tire cord and rubber during the tire manufacturing process.

The transaction includes product recipes, customer lists and associated intellectual property related to the tire cord binders business; no physical assets or employees are transferring to Trinseo. As part of the transaction, Trinseo has established agreements with Synthomer for contract manufacturing the products at Synthomer’s production facility at Marl, Germany, where the products will continue to be produced.


Tire Sector: Coronavirus (COVID-19) Global Impact Summary to 30th April 2020  Link...

Update of reported global impacts through 30 April 2020.

RCCL has summarised the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry/market trends are being used to generate short (quarterly), medium and long term outlooks.

RCCL has prepared preliminary estimates for the Chinese rubber industry. An overview of these estimates and methodology is presented in our April 2020 quarterly newsletter. We are currently preparing estimates for NAFTA and Europe, which will be included along with China in our Furnace Carbon Black Pricing report.

Analysis will be extended to global coverage by analysing all major regions. This will be included in our Furnace Carbon Black Industry & Markets 2020 report.

Other analysis focusing on specific segments and/or chemicals can be arranged on a client basis.


RCCL Industry Analysis:

Analysis Snippet: Tire Sector Coronavirus (COVID-19) Global Impact




Auto Sector: Coronavirus (COVID-19) Global Impact Summary to 30th April 2020  Link...

Update of reported global impacts through 30 April 2020.

RCCL has summarised the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry/market trends are being used to generate short (quarterly), medium and long term outlooks.

RCCL has prepared preliminary estimates for the Chinese rubber industry. An overview of these estimates and methodology is presented in our April 2020 quarterly newsletter. We are currently preparing estimates for NAFTA and Europe, which will be included along with China in our Furnace Carbon Black Pricing report.

Analysis will be extended to global coverage by analysing all major regions. This will be included in our Furnace Carbon Black Industry & Markets 2020 report.

Other analysis focusing on specific segments and/or chemicals can be arranged on a client basis.


RCCL Industry Analysis:

Analysis Snippet: Global Automotive Industry Coronavirus COVID-19 Impacts

The current situation is far from transparent. Plants temporarily closed due to local COVID-19 impositions have opened at much reduced production rates. In China, for example there are reports of a wide range of utilisation rates as we move into May. In North Asia, there are some planned temporary closures and significant reductions in plant utilisations announced by a number of automotive manufacturers for May and June.




April (2020)

Jiangxi Black Cat Carbon Black: 2019 Full Year Results  Link...

Jiangxi Black Cat Carbon Black: Carbon black market pricing reduced significantly due to market factors. These factors included weak global demand due to trade friction, a downturn in the domestic automotive industry, lower crude oil pricing and new carbon black capacity.

Jiangxi Black Cat Carbon Black is China's biggest producer of furnace carbon black with capacity at just over 1 million metric tonnes. Rubber Chemical Consultants tracks Jiangxi Black Cat for total financial performance as well as performance in furnace black and precipitated silica production. Currency values reported in: Millions of CNY

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue20195579.16767.2-17.6
Carbon BlackGross Margin2019358.91118.0-67.9
Carbon BlackSales Vol MT2019963200.0992300.0-2.9


China Synthetic Rubber Corporation: 2019 Q4 Results  Link...

China Synthetic Rubber Corporation (CSRC) manufacture furnace carbon black, biotech and electronic products. Rubber Chemical Consultants Ltd tracks the Carbon Black segment which accounts for approximately two thirds of CSRC's total sales revenue (2016). Currency values reported in: Millions of TWD

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue2019/43253.34268.0-23.8
Carbon BlackEBIT2019/4-260.8-52.8-393.5


RCCL Industry Analysis:

Analysis Snippet: China Synthetic Rubber Carbon Black Sales Revenue vs Weighted Average Feedstock Pricing

The figure below shows the relative change in carbon black sales revenue and weighted average feedstock pricing using Q1 2011 as the baseline. 2020 Q1 carbon black sales revenue has been estimated from total sales revenue using the previous quarter's split. The weighted average feedstock pricing was determined using NAFTA and China feedstock types (most relevant to CSR's operations).

The chart shows significant softening in the market from Q3 2019 inferring substantial volume reductions, this is expected to increase for Q2 2020.


img1

Longxing Chemical Stock: 2019 Full Year Results  Link...

Longxing Chemical Stock: Carbon black demand reduced suppressing prices. Domestic tire production started to decline from March 2019. Increased domestic capacity for carbon black has led to oversupply causing further downward pricing pressure.

Longxing Chemical Stock (second largest furnace carbon black producer in China) also produces chemicals and precipitated silica. Rubber Chemical Consultants tracks Longxing's furnace black and precipitated silica segments as well as quarterly company results. Currency values reported in: Millions of CNY

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue20192589.22872.1-9.8
Carbon BlackGross Margin2019256.1436.6-41.3
Carbon BlackSales Vol MT2019456561.0440237.53.7


Kraton Corporation: 2020 Q1 Results  Link...

Kraton Corporation: First quarter 2020 results reflect geographic diversification with no material impact due to COVID-19 during the period.

Kraton Performance Polymers Inc manufacture styrenic block copolymers and other engineered polymers. Kraton acquired Arizona Chemical in January 2016. Arizona Chemical manufacture pine and hydrocarbon based resin products. Rubber Chemical Consultants tracks Kraton's reporting segment for Chemicals which covers the Arizona Chemical business activities including specialised resins for tire applications. Currency values reported in: Millions of USD

SegmentParameterPeriod20202019YoY, %Notes
All SegmentsSales Revenue2020/1186.9195.4-4.31
All SegmentsEBITDA2020/128.443.6-34.8
All SegmentsadjEBITDA2020/126.741.3-35.3
All SegmentsTire Segment Sales2020/111.313.0-13.62
All SegmentsSales Vol MT2020/1110100.0103600.06.3


Datwyler Holding Inc: Sells Civil Engineering Business to Management Team  Link...

Datwyler sold its civil engineering business (Datwyler Sealing Technologies Deutschland GmbH) to representatives of the existing management on 28 April 2020. The closing of the agreement is scheduled for 4 May 2020.

The divested company combines the civil engineering business with elastomer profiles for applications in tunnels, underground construction and track superstructures at the German location Waltershausen. Some 180 employees generate annual sales of around CHF 40 million.

The divestiture allows the Datwyler Group to focus on growing, high-margin sealing components for attractive global markets such as healthcare, mobility, oil & gas, food & beverage and general industry


Atul Ltd: 2019 Q4 Results  Link...

Atul Ltd a diversified chemical manufacturer with manufacturing operations in India reports results in two operating segments: Life Sciences and Performance Chemicals. Rubber Chemical Consultants tracks the Performance Chemical segment which contains rubber resins and related products (resorcinol and resorcinol formaldehyde) as well as the company results covering all segments. Currency values reported in: Millions of INR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/49654.710008.4-3.51
All SegmentsEBIT2019/41898.51658.214.5
All SegmentsNet Margin2019/41424.71085.431.3
Performance ChemicalsSales Revenue2019/47446.27193.83.5
Performance ChemicalsEBIT2019/41472.61045.340.9


Jiangxi Black Cat Carbon Black: 2020 Q1 Results  Link...

Jiangxi Black Cat Carbon Black is China's biggest producer of furnace carbon black with capacity at just over 1 million metric tonnes. Rubber Chemical Consultants tracks Jiangxi Black Cat for total financial performance as well as performance in furnace black and precipitated silica production. Currency values reported in: Millions of CNY

SegmentParameterPeriod20202019YoY, %Notes
All SegmentsSales Revenue2020/11097.61559.8-29.6
All SegmentsGross Margin2020/1121.683.944.9
All SegmentsNet Margin2020/1-4.0-74.294.7


Tire Sector: Coronavirus (COVID-19) Global Impact Summary to 23rd April 2020  Link...

Update of reported global impacts through 23 April 2020.

RCCL has summarised the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry/market trends are being used to generate short (quarterly), medium and long term outlooks.

RCCL has prepared preliminary estimates for the Chinese rubber industry. An overview of these estimates and methodology is presented in our April 2020 quarterly newsletter. We are currently preparing estimates for NAFTA and Europe, which will be included along with China in our Furnace Carbon Black Pricing report.

Analysis will be extended to global coverage by analysing all major regions. This will be included in our Furnace Carbon Black Industry & Markets 2020 report.

Other analysis focusing on specific segments and/or chemicals can be arranged on a client basis.


RCCL Industry Analysis:

Analysis Snippet: Tire Sector Coronavirus (COVID-19) Global Impact




Longxing Chemical Stock: 2020 Q1 Results  Link...

Longxing Chemical Stock (second largest furnace carbon black producer in China) also produces chemicals and precipitated silica. Rubber Chemical Consultants tracks Longxing's furnace black and precipitated silica segments as well as quarterly company results. Currency values reported in: Millions of CNY

SegmentParameterPeriod20202019YoY, %Notes
All SegmentsSales Revenue2020/1471.4690.6-31.7
All SegmentsGross Margin2020/169.472.8-4.6
All SegmentsNet Margin2020/11.31.6-21.0


Trelleborg A.B.: Divests Moulded Component Operations in Sweden and Estonia  Link...

Trelleborg has finalised divestment of its Swedish and Estonian moulded components business unit (part of the recently initiated Business Under Development segment). The divested operations manufacture various moulded products (2019 SR 250M SEK) and have been sold to the current management team.


RCCL News:

April 2020 Newsletter (Issue 18) Now Available  Link...

Special Focus: Discussion and initial results for short-term market impact of COVID-19 on China's Tire & Rubber Goods Industry:

  • RCCL's analysis methodology.
  • Summary of initial results.
  • Concluding comments.

Rubber chemical manufacturer changes.

Rubber chemical consumer (tire, rubber goods, plastics) changes.

Quarterly compound capacity movements for Tire, MRG & Plastic Segments.

Lastest Projects and Global Tire & Rubber Chemicals Database Upgrades.

rubber chemical consultants Jan 2020 newsletter

Goodyear: Closing Gadsden, Alabama Plant  Link...

Goodyear have reached a tentative bargaining agreement, subsequently approving a plan to close its Gadsden, Alabama plant. This is part of Goodyear's strategy to strengthen the competitiveness of its manufacturing footprint by curtailing production of tires for declining, less profitable segments of the tire market. The tentative bargaining agreement remains subject to approval by the membership of the local union.


Automotive Sector: Coronavirus (COVID-19) Global Impact Summary to 14th April 2020:   Link...

Update of reported global impacts through 14 April 2020.

RCCL has summarised the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry/market trends are being used to generate short (quarterly), medium and long term outlooks.

RCCL is preparing estimates for the Chinese rubber industry. An overview of these estimates and methodology will be presented in our April 2020 quarterly newsletter (publishing 20th April 2020). Following this we will be preparing estimates for NAFTA and Europe, which will be included along with China in our Furnace Carbon Black Pricing report.

Finally, this will be extended to global coverage by analysing all major regions. This will be included in our Furnace Carbon Black Industry & Markets 2020 report. Other analysis focusing on specific segments and/or chemicals can be arranged on a client basis.


RCCL Industry Analysis:

Analysis Snippet: Global Automotive Industry Coronavirus COVID-19 Impacts




Tire Sector: Coronavirus (COVID-19) Global Impact Summary to 14th April 2020  Link...

Update of reported global impacts through 14 April 2020.

RCCL has summarised the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry/market trends are being used to generate short (quarterly), medium and long term outlooks.

RCCL is preparing estimates for the Chinese rubber industry. An overview of these estimates and methodology will be presented in our April 2020 quarterly newsletter (publishing 20th April 2020). Following this we will be preparing estimates for NAFTA and Europe, which will be included along with China in our Furnace Carbon Black Pricing report.

Finally, this will be extended to global coverage by analysing all major regions. This will be included in our Furnace Carbon Black Industry & Markets 2020 report. Other analysis focusing on specific segments and/or chemicals can be arranged on a client basis.


RCCL Industry Analysis:

Analysis Snippet: Tire Sector Coronavirus (COVID-19) Global Impact




Michelin: Partnering With Enviro For Tire to Raw Material Development  Link...

Michelin is partnering with Enviro to develop and industrialize on a large scale an innovative pyrolysis technology to recycle tires at the end of their life.

Enviro's innovative technology enables production of high-quality products such as recovered carbon black, pyrolysis oil, steel or gas, These products can then be re-incorporated into the production circuit of different industrial sectors.

The partnership has four key points of focus:

  • Deploying Enviro's pyrolysis technology on a larger scale
  • Michelin will take a 20% stake in Enviro, the group will support development of Enviro through board representation
  • A project to build a factory to industrialise the technology
  • A joint supply agreement between Michelin and Enviro

Discussions are ongoing between the two companies with the objective to conclude a final agreement by mid-2020.


Tokai Group: Carbon Black Price Increase in Japan  Link...

Tokai Carbon have increased the price of all grades of carbon black by 6.0 JPYen/Kg effective May 1st 2020. The increase is due to the impact of the IMO sulphur regulations which have necessitated a move away from traditional indices to pricing revisions based on a crude oil index.


H&R Group: 2019 FY and Q4 Results  Link...

H&R Group: Performance down due to global economic developments including the trade dispute between the United States and China. This has significantly influenced major markets leading to pricing pressures caused by redirection of low priced products to Europe in place of the North America.

H&R GmbH produce speciality chemical products using state-of-the-art refineries and processes. Products include plasticisers, white oils and paraffins as well as precision plastic products. Rubber Chemical Consultants tracks H&R GmbH consolidated results, in 2017 the refining and sales segment accounted for approximately 94% of total revenue, the plasticiser share was approximately 27% of sales revenue in previous years. Currency values reported in: Millions of EUR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue20191075.31114.1-3.5
All SegmentsEBITDA201952.374.3-29.6
All SegmentsEBIT20196.940.2-82.8
All SegmentsSales Vol MT2019815254.0836140.0-2.5
All SegmentsNet Margin2019.122.3-99.6
All SegmentsSales Revenue2019/4250.6280.5-10.6
All SegmentsEBITDA2019/47.714.7-47.7
All SegmentsEBIT2019/4-4.17.3-156.7
All SegmentsNet Margin2019/4-4.81.8-364.5


Hangzhou Zhongce Rubber Company Ltd: Groundbreaking for Phase III Expansion at Thailand Plant  Link...

Hangzhou Zhongce Rubber has started construction of phase III at its all-steel TBR workshop at its Thailand plant.


Tire Sector: Coronavirus (COVID-19) Global Impact Summary to 6th April 2020  Link...

Update of reported global impacts through 6 April 2020.

RCCL has summarised the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry/market trends are being used to generate short (quarterly), medium and long term outlooks.

RCCL is preparing estimates for the Chinese rubber industry. An overview of these estimates and methodology will be presented in our April 2020 quarterly newsletter (publishing 20th April 2020). Following this we will be preparing estimates for NAFTA and Europe, which will be included along with China in our Furnace Carbon Black Pricing report.

Finally, this will be extended to global coverage by analysing all major regions. This will be included in our Furnace Carbon Black Industry & Markets 2020 report. Other analysis focusing on specific segments and/or chemicals can be arranged on a client basis.


RCCL Industry Analysis:

Analysis Snippet: Tire Sector Coronavirus (COVID-19) Global Impact



Automotive Sector: Coronavirus (COVID-19) Global Impact Summary to 6th April 2020  Link...

Update of reported global impacts through 6 April 2020.

RCCL has summarised the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry/market trends are being used to generate short (quarterly), medium and long term outlooks.

RCCL is preparing estimates for the Chinese rubber industry. An overview of these estimates and methodology will be presented in our April 2020 quarterly newsletter (publishing 20th April 2020). Following this we will be preparing estimates for NAFTA and Europe, which will be included along with China in our Furnace Carbon Black Pricing report.

Finally, this will be extended to global coverage by analysing all major regions. This will be included in our Furnace Carbon Black Industry & Markets 2020 report. Other analysis focusing on specific segments and/or chemicals can be arranged on a client basis.


RCCL Industry Analysis:

Analysis Snippet: Global Automotive Industry Coronavirus COVID-19 Impacts



Tire Sector: Coronavirus (COVID-19) Global Impacts Summary to 3rd April 2020  Link...

Update through 2 April 2020 of reported global impacts.

RCCL has tried to summarise the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry and market trends will be used to generate short (quarterly), medium and long term outlooks when the situation is clearer.


RCCL Industry Analysis:

Analysis Snippet: Tire Sector Coronavirus (COVID-19) Global Impact

Status as of 2nd April 2020



Dayco: Invests in New Brazilian Campus  Link...

Dayco has added a new South American plant located in Indaiatuba, Brazil. The facility will improve Dayco's capabilities in South America, supporting the fast-growing aftermarket business in this region. The new plant will unify the manufacturing, logistics, engineering and corporate departments in a single Brazilian location, generating greater synergy between the territories and agility in its processes.


Shandong Linglong Tyre Co., Ltd: Medium-Long Term Development Plan 2020 to 2030  Link...

Linglong plans to elevate its position to a top five global industry player by 2030 with a focus on product quality and competitiveness, together with social, economic and ecological environmental sustainability.

The company is targetting production of 160 million tires pa by 2030 with an updated 6 + 6 strategy to optimise global industrial output. This is an updated strategy to operate 6 domestic and 6 overseas production bases by 2030 (previous strategy was 5 + 3).

The company currently has four production bases in China and two overseas (Thailand, Serbia). A fifth production facility is targetted to be operational in China by 2023 followed by the sixth facility in 2025. The additional capacities in China will also see rationalisation of legacy tire production (11 million units). A further three overseas production bases will be selected by 2021.

The fifth domestic production base will be built in Changchun which is being developed as a world-class automotive production and development hub. The proposed capacity is 14 million tires pa consisting of 12 million PCR, 2 million TBR and 200k TBR retreads. Construction will be completed by 2025, with the project being implemented in three phases: I) 1.2 million TBR II) 0.4 million TBR, 6 million PCR III) 0.4 million TBR, 6 million PCR, 0.2 million TBR retreads.


March (2020)

Automotive Sector: Coronavirus (COVID-19) Global Impacts Summary to 27 March 2020  Link...

Update through 27 March 2020 of reported global impacts.

RCCL has tried to summarise the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry and market trends will be used to generate short (quarterly), medium and long term outlooks when the situation is clearer.


RCCL Industry Analysis:

Analysis Snippet: Global Automotive Industry Coronavirus Impact

Status as of 27th March 2020



Tire Sector: Coronavirus (COVID-19) Global Impacts Summary to 27 March 2020  Link...

Update through 27 March 2020 of reported global impacts.

RCCL has tried to summarise the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry and market trends will be used to generate short (quarterly), medium and long term outlooks when the situation is clearer.


RCCL Industry Analysis:

Analysis Snippet: Tire Sector Coronavirus (COVID-19) Global Impact

Status through 27th March 2020.



Michelin: Early Closure for Dundee, UK Plant  Link...

Tyre production at the Michelin plant in Dundee has ceased early as a result of the coronavirus pandemic. The company has shut the plant after 50 years of manufacturing and agreed to pay the workers their full entitlement to wages through to the planned closure date in the summer. Michelin first announced the plant closure in 2018 the target closure date was originally mid 2020.


Sumitomo Rubber Industries: Develops Reduced Odour Natural Rubber  Link...

Sumitomo Rubber Industries (SRI), Ltd. has developed a reduced odour natural rubber. After identifying the factors causing natural rubber to emit an odour, SRI have introduced a proprietary processing technique at their natural rubber processing plant in Thailand. The product achieves significant odour reduction by suppressing the breakdown of odour causing non-rubber components, such as proteins and lipids, that are found within the rubber in its raw state.


Chengshan (Prinx) Group Co: New TBR Plant in Thailand Completed  Link...

The first TBR tire was produced on March 25th 2020. Prinx Thailand is the first overseas production base of Prinx Chengshan Tire. The first phase of production is planned in the second quarter of 2020, with the final annual production capacity of TBR tire targetted at 800 kpa. Final production capacity also includes 4 million PLT tires per annum.


Automotive Sector: Coronavirus (COVID-19) Global Impacts Summary  Link...

The automotive industry has seen significant impact from the coronavirus outbreak. Disruption first started in China, centred on Wuhan, one of China’s most important automotive production hubs. Wuhan is the location of numerous automotive production sites as well as parts producers, which is why disruption in this area also has implications for other production sites in China and elsewhere.

The spread of the virus is now leading to significant disruption in other regions. Rather than referencing individual closures and companies in individual news items, RCCL has tried to summarise the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry and market trends will be used to generate short (quarterly), medium and long term outlooks when the situation is clearer.


RCCL Industry Analysis:

Analysis Snippet: Global Automotive Industry Coronavirus COVID-19 Impacts

Status as of 23rd March 2020.


Tire Sector: Coronavirus (COVID-19) Global Impacts Summary   Link...

The tire industry has seen significant impact from the coronavirus outbreak. Disruption is related to closures for health and safety reasons as well as shrinking market demand. Market demand was first impacted by automotive plant closures, relating to OE demand, followed by reduced replacement market demand.

Rather than referencing individual closures and companies in individual news items, RCCL has tried to summarise the impacts in each region. This will be updated as the situation progresses. The summaries are from multiple sources providing a simplified overview. Underlying complexities need to be acknowledged (e.g. differences in status for individual manufacturer’s plants within a country), however, the purpose is to determine trends.

Automotive, tire and MRG industry and market trends will be used to generate short (quarterly), medium and long term outlooks when the situation is clearer.


RCCL Industry Analysis:

Analysis Snippet: Tire Sector Coronavirus (COVID-19) Global Impact

Status as of 23rd March 2020.


Orion Engineered Carbons: FY 2020 Guidance Update  Link...

Due to the ongoing uncertainty relating to the full extent of the COVID-19 situation, Orion Engineered Carbons has announced it is withdrawing its full-year 2020 guidance issued in February. The company has also announced a number of actions to maintain and strengthen its financial flexiblity including increasing its cash position and suspending its dividend.


Dow Corning: Dow signs Memorandum of Understanding with Zhangjiagang Free Trade Zone  Link...

Dow has signed a MoU for collaboration with the Zhangjiagang Free Trade Zone in Jiangsu, China. The MoU facilitating expansion at Dow’s manufacturing site in Zhangjiagang with potential investments of $300 million in the next five years. The MoU intends to increase Dow’s capacity to meet growing global demand for silicone intermediates and finished products, enhancing the Company’s ability to collaborate and deliver innovative solutions with customers.


Domo Chemicals: Building New Nylon Plant in China  Link...

Domo Chemicals in investing €12 million for a new nylon compounding plant in China. The plant, to be based in DuShan Pinghu city, Zhejiang will have a final capacity of 50 kMTpa. Phase I will implement 25 kMTpa capacity and is scheduled to start operation Q4 2020.


Apollo Tires: Refocusing Enschede, Netherlands Plant  Link...

Apollo Tires are planning to transition the Enschede plant to high value PC and agricultural tire production with the elimination of less profitable product lines. The plan will eliminate 750 jobs at the plant over the next 2 years.


Evonik Industries: 2019 FY and Q4 Results  Link...

Evonik: Reslience in Tire Silica Market, volumes down in automotive (non-tire) and sealants.

Evonik currently reports in four segments. The silica and silane activities reside in the Resource Efficiency segment. Rubber Chemical Consultants tracks the Resource Efficiency segment. Note: Prior year values are unadjusted values for the given period. Currency values reported in: Millions of EUR

SegmentParameterPeriod20192018YoY, %Notes
Resource EfficiencySales Revenue20195685.05709.0-.41
Resource EfficiencyEBITDA20191290.01288.0.2
Resource EfficiencyEBIT2019964.0985.0-2.1
Resource EfficiencySales Vol YoY %201996.099.0-3.0
Resource EfficiencySales Revenue2019/41387.01404.0-1.22
Resource EfficiencyEBITDA2019/4314.0259.021.23
Resource EfficiencyEBIT2019/4227.0180.026.1
Resource EfficiencySales Vol YoY %2019/496.0101.0-5.04


WDK: German Rubber Industry Production Declined in 2019  Link...

Sales and production in the German rubber industry declined during the year. Total production volume declined by 3.9% YoY with initial impact in automotive OE followed by declines in other areas. The outlook for 2020 is for flat demand with difficulties predicted managing the impact of coronavirus on raw material supply.


Goodyear: reCharge Concept Tire  Link...

Goodyear has uveiled its latest concept tire - the Goodyear reCharge.

The Goodyear reCharge is a revolutionary self-regenerating concept tire that can adapt and change to meet individual mobility needs. The reCharge concept includes a number of innovative features that are built around three pillars:

  • Personlised
    • A reloadable and biodegradable tread compound that can be recharged with individual capsules, radically simplifying the process of replacing your tires.
  • Sustainable
    • The compound would be made from a biological material reinforced with fibres inspired by one of the toughest natural materials in the world - spider silk.
  • Low-Maintenance
    • A robust low-maintenance construction that would eliminate the need for pressure maintenance or downtime related to punctures.


Elkem: Initiates New Productivity Improvement Programme  Link...

Elkem is implementing a new global productivity improvement programme to improve its cost position and streamline its organisation in preparation for future growth and specialisation

The productivity improvements will be achieved mainly through planned reductions of personnel cost. It is too early to estimate how many full-time equivalents will be affected. The programme is being implemented in close dialogue with employee representatives and in compliance with local labour laws.


Metso: Establishes Manufacturing Site for Mining Consumables in Lithuania  Link...

Metso's Minerals Consumables bussiness unit is starting a rubber and polymer wear parts manufacturing plant in northern Lithuania. The facility will start operations Q2 2020.


Ingenia Polymers Inc: Acquires Bayshore Masterbatch Operations in La Porte, Texas  Link...

Ingenia Polymers has acquired the Bayshore masterbatch tolling operations located in La Porte, Texas that were formerly part of A. Schulmann prior to its acquisition by LyondellBasell in 2018.


February (2020)

Kraton Corporation: 2019 FY and Q4 Results  Link...

Kraton Corporation: Increasing evidence that customers are requiring more sustainable products and solutions. This positions Kraton well for evolving market trends based on their feedstock and product development portfolio.

Kraton Performance Polymers Inc manufacture styrenic block copolymers and other engineered polymers. Kraton acquired Arizona Chemical in January 2016. Arizona Chemical manufacture pine and hydrocarbon based resin products. Rubber Chemical Consultants tracks Kraton's reporting segment for Chemicals which covers the Arizona Chemical business activities including specialised resins for tire applications. Currency values reported in: Millions of USD

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019751.5790.1-4.9
All SegmentsEBITDA2019144.4162.8-11.3
All SegmentsEBIT201962.191.6-32.2
All SegmentsTire Segment Sales201950.448.14.71
All SegmentsSales Revenue2019/4176.1174.41.0
All SegmentsadjEBITDA2019/419.540.8-52.2
All SegmentsEBITDA2019/417.530.3-42.3
All SegmentsTire Segment Sales2019/411.59.324.32
All SegmentsEBIT2019/4-4.812.1-139.5


Goodyear: First to Achieve OE Tire with 3PMSF and A Rated Rolling Resistance  Link...

Goodyear has become the first company to produce an OE all-season tire with the 3PMSF (verified winter performance) which is also rated A (most efficient) for rolling resistance. The product represents close collaboration between functions and teams at Goodyear's Luxembourg and German developmen facilites and leverages the most recent tread pattern developments as well as new rubber compounding.


Longxing Chemical Stock: 2019 Results Preliminary Update  Link...

Reporting period was adversely affected by the US-China trade dispute and close to double digit negative growth in domestic automobile production and sales. This was further compounded by additional furnace carbon black capacity growth leading to over supply as well as weakened market demand. Operating income has dropped by 9.1% YoY with an 86.4% drop in operating profit.


Solvay: 2019 FY and Q4 Results  Link...

Solvay: Silica revenue showing resilience in difficult market environment.

Solvay operate with four reporting segments, plus corporate and business services. Rubber Chemical Consultants track the Advanced Materials segment which includes Solvay's precipitated silica operations. Currency values reported in: Millions of EUR

SegmentParameterPeriod20192018YoY, %Notes
Advanced MaterialsSales Revenue20194512.04385.02.91
Advanced MaterialsadjEBITDA20191143.01197.0-4.5
Advanced MaterialsadjEBIT2019801.0895.0-10.5
Precipitated SilicaSales Revenue2019449.0442.01.6
Advanced MaterialsSales Revenue2019/41069.01093.0-2.22
Advanced MaterialsadjEBITDA2019/4252.0275.0-8.4
Advanced MaterialsadjEBIT2019/4161.0191.0-15.7
Precipitated SilicaSales Revenue2019/4109.0110.0-.93


Cabot Corporation: Introduces Engineered Elastomer Composites (E²C™)  Link...

Cabot Corporation announced the launch of its Engineered Elastomer Composites (E²C™) solutions.

Enabled by proprietary technology for mixing reinforcing agents into elastomers, E²C solutions are pre-mixed composite solutions designed to help tire manufacturers unlock superior performance sustainably and economically.

E²C solutions have been shown to break critical trade-offs in off-the-road (OTR)/earthmover tire design by both lowering operating temperatures and extending tire life significantly. This can enable an average mine to increase haulage capacity, boost output, and reduce annual downtime for tire changes leading to a potential benefit up to $150M per year. The E2C series of solutions offers balanced performance, increased durability and improved energy efficiency, and can be formulated for specific OTR/earthmover applications to deliver maximum performance benefit.

The first E2C solution, DX9730, is part of a new Durability series of products designed to reduce in-field failures and maximize operational uptime. DX9730 offers breakthrough improvements in cut, chip, and chunk resistance, reduces the risk of catastrophic tire failures and unplanned vehicle service and increases fleet utilization.


Cooper Tire & Rubber Co: Investing in Serbian and Mexican Plants  Link...

Cooper's 2019 FY report and outlook for 2020 includes significant capital expenditures, ranging from $260-280 million in 2020 for its Serbian and Mexican plants. These strategic investments are part of Cooper's plans to enhance global competitiveness and follow on from shifting production from Melksham, UK to Serbia as well as acquiring full ownership of the Mexican facility.


Kolon Industries: 2019 FY and Q4 Results  Link...

Kolon Industries reports operations in five segments. The Chemical Segment contains the company's hydrocarbon resin activities, where tire resins are a minor component. Rubber Chemical Consultants tracks the company results and the Chemical Segment results. Currency values reported in: Millions of KRW

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue20194407000.04753000.0-7.3
All SegmentsEBIT2019173000.0145000.019.3
All SegmentsNet Margin201922000.043000.0-48.8
ChemicalsSales Revenue2019760000.0900000.0-15.6
ChemicalsEBIT201981000.084000.0-3.6
All SegmentsSales Revenue2019/41133000.01327000.0-14.61
All SegmentsEBIT2019/411000.032000.0-65.6
All SegmentsNet Margin2019/4-29000.0-19000.0-52.6
ChemicalsSales Revenue2019/4171000.0221000.0-22.62
ChemicalsEBIT2019/411000.020000.0-45.0


Thai Lube Base PCL: 2019 Q4 Results  Link...

Thaioil is Thailand's largest refinery and supplier of petroleum products. Thaioil reports in four segments: Oil Refinery, Petrochemical & Lube Base Oil, Power Generations & Transportation & Others. Rubber Chemical Consultants Ltd tracks Thaioil's Petrochemical Segment which reports the Lube Base Oil results separately. The Lube Base oil segment produces Lube Base Oil, Bitumen and TDAE process oil. Currency values reported in: Millions of THB

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/44424.05941.0-25.51
All SegmentsEBITDA2019/4653.0209.0212.42
All SegmentsNet Margin2019/4502.0145.0246.2


Orion Engineered Carbons 2019 FY and Q4 Results  Link...

Orion Engineered Carbons: Challenging environment continued in 2019 Q4 with weak OEM dynamics and tire customers reducing volumes towards year-end. There were some benefits from price and product mix. Orion's strategic initiatives during 2019 included cost reduction and price increase implementations. Additional surcharge mechanisms have been put in place for most 2020 rubber contracts to recover feedstock pricing differentials.

Orion Engineered Carbons manufactures furnace carbon black as well as thermal, gas, lampblack and acetylene blacks and is the third largest carbon black producer on a global basis. Orion reports results in two segments: Specialist and Rubber. Rubber Chemical Consultants tracks the two segments as well as the overall company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue20191476.41578.2-6.5
Carbon BlackadjEBITDA2019267.3294.1-9.1
Carbon BlackEBITDA2019243.9294.5-17.2
Carbon BlackEBIT2019147.2196.3-25.0
Carbon BlackSales Vol MT20191023200.01084600.0-5.7
Rubber BlackSales Revenue2019967.91032.8-6.3
Rubber BlackadjEBITDA2019145.2144.9.2
Rubber BlackSales Vol MT2019772100.0822200.0-6.1
Specialist BlackSales Revenue2019508.5545.5-6.8
Specialist BlackadjEBITDA2019122.2149.2-18.1
Specialist BlackSales Vol MT2019251100.0262400.0-4.3
Carbon BlackSales Revenue2019/4322.4385.9-16.4
Carbon BlackadjEBITDA2019/463.264.4-1.9
Carbon BlackEBITDA2019/457.853.09.1
Carbon BlackEBIT2019/432.626.722.1
Carbon BlackSales Vol MT2019/4233500.0256200.0-8.9
Rubber BlackSales Revenue2019/4207.7259.1-19.81
Rubber BlackadjEBITDA2019/431.435.4-11.32
Rubber BlackSales Vol MT2019/4176700.0195400.0-9.63
Specialist BlackSales Revenue2019/4114.8126.9-9.54
Specialist BlackadjEBITDA2019/431.829.09.7
Specialist BlackSales Vol MT2019/456800.060800.0-6.65


IRPC Public Company Limited : 2019 Full Year Results  Link...

IRPC Public Company Ltd is an integrated refining and petrochemical company with complexes at its own industrial zone in Rayong province. IRPC reports in three segments: Petroleum business, Petrochemical Business and Supporting Businesses. Rubber Chemical Consultants Ltd tracks the performance in the Petroleum Business, more specifically the Lube Base Oil sub segment which produces rubber processing oils along with other products. Currency values reported in: Millions of THB

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue201916781.019229.0-12.71


Continental Rubber Group: Producing Tires with Cokoon Dip Technology Jointly Developed with Kordsa  Link...

Continental and Kordsa started series production (2019) of the first 250k PC tires featuring their new sustainable adhesive technology. This technology enables rubber bonding activation of textile reinforcing materials without the traditional RFL dip (resorcinol formaldehyde latex).

Cokoon was first announced as an open innovation technology in March 2019, more than 40 companies have expressed an interest in testing the material and joinging the licensing pool. Over 20 companies have been sampled with materials. All the interested parties have been invited to join the pool and obtain free licensing in order to contribute to the development of this new green technology.


Birla Carbon: and GranBio Introduce Nanocellulose Dispersion Composite (NDC™) Masterbatch   Link...

Birla Carbon and GranBio Technologies have announced the introduction of their patent-pending NDC™ rubber masterbatch for qualification by tire and rubber companies. The NDC™ masterbatch is the result of a three-year Joint Development Program between the two companies designed to address growing sustainability demands from the tire industry both in terms of improving tire rolling resistance and vehicle fuel economy through enabling the incorporation of sustainable, bio-derived nanocellulose into commercial rubber compounds.

The NDC™ masterbatch overcomes traditional dispersion challenges by combining several synergistic innovations including GranBio’s patented hydrophobic form of nanocellulose. The breakthrough in nanocellulose technology for rubber compounds provides many advantages and benefits for the rubber compounder including easy dispersing, convenient, dust-free handling and integration into formulations along with increased use of renewable raw materials and improvements in fuel economy.


Wacker Chemie AG: Begins Efficiency Program to Increase Competitiveness and Profitability  Link...

Waker Chimie AG has announced its initial plans for its 'Shape the Future' efficiency program. Savings of €250 million/pa are targetted by reducing material costs and in-house services by creating a leaner company structure. Over 1000 jobs are expected to go by the end of 2022 affecting administrative and indirect business functions. The main part of the reduction will be at German sites.


Pirelli Tires: 2020-2022 Industrial Plan Vision 2025 Cost Competitiveness  Link...

Pirelli Tires is looking to make €510 million in efficiency improvements through product development, manufacturing, administration and organisational changes. For manufacturing, the plan is to have 18 plants in 2022 (82% in low cost countries) with the Bollate Plant in Italy converted to Premium Velo production. There will be 2 production hubs in low cost countries serving closer high value markets: LATAM for North America and Russia for Europe.


Kraiburg Holding GmbH: Foam-Free Lightweight TPE  Link...

Kraiburg TPE has developed very low density TPE targetted at automotive, power tools and other application areas.

The new TPE technology uses 3M™ Glass Bubbles to obtain materials with very low densities of between 0.7 and 0.9 g/cm³ allowing the production of extremely lightweight thin-walled moldings providing excellent surfaces and able to withstand mechanical loads.

The microscopically small hollow glass bubbles are made of chemically stable borosilicate glass that is insoluble in water. They spread evenly in the TPE matrix and help increase the dimensional stability.


Tokai Group: 2019 FY and Q4 Results  Link...

Tokai Group: 2020 forecast is for further margin reduction (-8.3%).

Tokai Carbon Co Ltd operates in five reporting segments one of which is carbon black. Tokai carbon produce carbon black in Japan, Thailand and China. Tokai acquired Cancarb (which produces thermal carbon black) in 2014 and also acquired Sid Richardson (a furnace carbon black manufacturer with three US production facilities) mid 2018. RCCL tracks Tokai's carbon black segment. Currency values reported in: Millions of JPY

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue2019101751.076926.032.31
Carbon BlackEBIT20198512.010629.0-19.92
Carbon BlackSales Revenue2019/421392.027939.0-23.4
Carbon BlackEBIT2019/4543.02834.0-80.8


Phillips Carbon Black Ltd: 2019 Q3 Results  Link...

Phillips Carbon Black Ltd: Fall in domestic demand is expected to be short lived. Increased focus on international sales to increase volumes moving forwards.

Phillips Carbon Black Ltd (PCBL) produce furnace carbon black and also cogenerate electricity using the waste gas from the carbon black process. PCBL report in two segments: Carbon Black and Power, the Power segment sells back to the Carbon Black segment as well as supplying surplus electricity for external sale. All quarterly results are unaudited. Results are reported based for the period in question with no currency adjustments between reporting periods. Currency values reported in: Millions of INR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/37686.59458.9-18.7
All SegmentsEBIT2019/31031.21672.1-38.3
All SegmentsNet Margin2019/3696.21085.8-35.9
Carbon BlackSales Revenue2019/37489.19197.1-18.61
Carbon BlackEBIT2019/31171.01674.3-30.1
Carbon BlackSales Vol MT2019/398593.0101917.0-3.3


Mangalam Organics Limited: 2019 Q3 Results  Link...

Mangalam produces synthetic resins and terpene derived chemicals. For 2016 approximately 10% of revenue was derived from synthetic resins. In June 2015 a fire in the synthetic resin operation stopped production, the company has subsequently restarted production for a more limited selection of high margin products. Mangalam report for the combined segments and RCCL tracks this information. Currency values reported in: Millions of INR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/3805.41214.3-33.7
All SegmentsEBIT2019/3115.1375.6-69.3
All SegmentsNet Margin2019/337.7262.7-85.6


Thai Carbon: 2019 Q3 Results  Link...

Thai Carbon: Tremendous business pressure due to lower demand and economic slowdown.

Thai Carbon report in one segment: Carbon Black. Currency values reported in: Millions of THB

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue2019/31639.02243.8-27.0
Carbon BlackEBIT2019/3221.0426.4-48.2


Ascend Performance Materials: Acquires Compounding & Masterbatch Business of Poliblend and Esseti Plast  Link...

Ascend Performance Materials has signed an agreement to acquire Poliblend and Esseti Plast GD from D'Ottavio Group. The acquisition includes a manufacturing facility in Mozzate, Italy, the masterbatch portfolio of Esseti Plast GD and the engineering plastics portfolio of Poliblend. Poliblend was founded in 1999 and offers compounding and masterbatch services, including color and additive concentrates that enhance the appeal and end-use performance of plastics products, packaging and fibers.


Lanxess: Vegan Based Rubber Processing Promoter  Link...

Lanxess has added a plant-based raw material variant to its Aktiplast PP product range. Aktiplast PP-veg, which is based on renewable raw materials, was developed specifically in response to a customer requirement from Asia.

Unlike the conventional product, Aktiplast PP-veg is manufactured only from vegetable oils. The proportion of renewable raw materials in Aktiplast PP-veg is around 90 percent, so that its CO2 footprint is significantly reduced. The starting point are raw materials made from the fruits of oil palms. They are ecologically more sustainable than coconut palms, rapeseed or sunflowers, as they provide by far the highest oil yield per hectare of farmland area.

The processing promoter is particularly suitable for polymer blends based on natural rubber. It reduces the viscosity of rubber compounds and significantly improves injection and extrusion behavior, also in combination with functionalized polymers. Depending on the compound composition, the product improves scorch behavior, promotes vulcanization and ensures easy demolding without contamination of the mold.


Kraton Corporation: Highlighting Sylvatraxx™ 8000 at Tire Tech Expo 2020  Link...

Karton Corporation is highlighting its second generation polyterpene product, Sylvatraxx™ 8000, at this years Tire Tech Expo in Hannover. This product has a high biobased content designed to optimise wet traction and rolling resistance in silica-filled, high performance all-season tires.


Ceat: Inaugurates New Plant in Tamil Nadu, India  Link...

CEAT has inaugurated its new manufacturing plant located at Kanchipuram, Tamil Nadu, India. The facility can manufacture 28.5k PCR/day and 2.5k MCR/day. This is CEAT's sixth manufacturing location in India.


Polykemi AB: Increasing Capacity with New Extruder Line  Link...

Polykemi have invested in a new 92mm Coperion extruder, replacing an older line. The upgrade is expected to increase production by 5kMTpa.


Nokian Tires: Commercial Production Begins at Nokian Tyres' North American Factory  Link...

Nokian Tyres has begun producing tires for commercial sale at its North American factory in Dayton, Tennessee. The highly automated factory uses sustainable processes and is producing premium all-season and all-weather tires tailored to the needs of the North American market. The facility will produce up to 4 million tires pa by 2023


Continental Rubber Group: Starting Brazilian Production of Air Springs for Buses and Trucks  Link...

Continental has expanded its existing production capacities in Brazil to include the production of air spring systems for the local OE and RP truck, bus and trailer market.


Arakawa Chemical Industries: 2019 Q3 Results  Link...

Exports continue to weaken resulting in reduced production. Focus is on expanding business, improving profitability and promoting business development. Supply/demand balance in the adhesive market softened resulting in lower profit.

Arakawa Chemical Industries reports in four segments. Rubber Chemical Consultants tracks results for all segments as well as those for the Adhesive segment which contains products for the tire and rubber industry. Currency values reported in: Millions of JPY

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/318552.021032.0-11.8
All SegmentsGross Margin2019/34394.04698.0-6.5
All SegmentsEBITDA2019/32008.01936.03.7
All SegmentsEBIT2019/31153.01201.0-4.0
All SegmentsNet Margin2019/31049.02119.0-50.5
AdhesivesSales Revenue2019/36533.07115.0-8.2
AdhesivesEBIT2019/3412.0430.0-4.2


Cabot Corporation: 2020 Q1 Results  Link...

Cabot Corporation: 2020 tire customer agreements include successful implementation of pricing formula adjustments for MARPOL related feedstock differentials. Acquiring Shenzhen Sanshun Nano, a producer of carbon nanotubes (CNT) for lithium-ion batteries.

Cabot Corporation operate in four segments: Reinforcement Materials, Performance Chemicals, Purification Solutions and Speciality Fluids. RCCL tracks performance in the Reinforcement Materials (rubber carbon blacks) and Performance Chemicals (specialist carbon blacks, plastic compounds, metal oxides). EBIT/EBITDA figures for carbon black in the performance chemical segment use RCCL estimates. RCCL also estimates performance for total carbon black based on annual results. Currency values reported in: Millions of USD

SegmentParameterPeriod20202019YoY, %Notes
Carbon BlackSales Revenue2020/1549.0624.0-12.01
Carbon BlackEBIT2020/175.888.0-13.9
Rubber BlackSales Revenue2020/1379.0457.0-17.1
Rubber BlackEBITDA2020/164.078.0-17.9
Rubber BlackEBIT2020/147.062.0-24.22
Rubber BlackSales Vol YoY %2020/197.0101.0-4.0
Specialist BlackSales Revenue2020/1170.0167.01.83
Specialist BlackEBITDA2020/139.334.713.4
Specialist BlackEBIT2020/128.826.010.74
Specialist BlackSales Vol YoY %2020/1113.097.016.5


Eastman: 2019 FY and Q4 Results  Link...

Eastman: Additives & Functional Products (AFP) revenue decreased due to lower volumes, selling prices and unfavourable forex. EBIT decreased due to lowers sales volume, product mix and forex. 2020 outlook includes 1/3rd of AFP identified for improvement actions (further details to follow) as part of site and/or portfolio optimisation.

Eastman operate in four reporting segments. Rubber Chemical Consultants tracks Eastman's Additives & Functional Products (AFP) segment which contains tire related materials (resins, antidegradants and sulphur) and also tracks the company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue20199273.010151.0-8.6
All SegmentsadjEBIT20191389.01633.0-14.9
All SegmentsEBIT20191120.01552.0-27.8
All SegmentsNet Margin2019759.01084.0-30.0
Additives Functional ProductsSales Revenue20193273.03647.0-10.31
Additives Functional ProductsadjEBIT2019550.0671.0-18.0
Additives Functional ProductsEBIT2019496.0639.0-22.4
All SegmentsSales Revenue2019/42205.02376.0-7.2
All SegmentsadjEBIT2019/4279.0276.01.1
All SegmentsEBIT2019/462.0135.0-54.1
All SegmentsNet Margin2019/426.035.0-25.7
Additives Functional ProductsSales Revenue2019/4763.0851.0-10.32
Additives Functional ProductsEBIT2019/459.085.0-30.6


Michelin: Fenner Precision Polymers Acquires Fabri Cote   Link...

Fenner Precision Polymers (a member of the High Tech Materials Division of the Michelin Group) has acquired Fabri Cote, a speciality manfucturer of custom coated textiles. Fabri Cote is a market leader in development and production of custom rubber coated fabrics primarily for aerospace applications.


Michelin: Fenner Precision Polymers Acquires Fabri Cote   Link...

Fenner Precision Polymers (a member of the High Tech Materials Division of the Michelin Group) has acquired Fabri Cote, a speciality manfucturer of custom coated textiles. Fabri Cote is a market leader in development and production of custom rubber coated fabrics primarily for aerospace applications. Fabri Cote joins the growing Fenner Precision Polymers Business Line, with operations in Pennsylvania, North Carolina, Lincoln UK, and Shanghai China. Fenner Precision Polymers provides polymeric, metal, and textile based industrial solutions that add recognized value to motion control, power transfer, and related applications.


January (2020)

Chroma Color Corporation: Acquires Plastics Color Corporation  Link...

Chroma Color Corporation has acquired Plastics Color Corporation, including its two facilities in Asheboro, North Carolina and Calumet City, Illinois. Plastics Color Corporation produces color concentrates, functional additives and custom polymer masterbatch.


Nitta Corporation: Acquires Truck and Bus Air Spring Business from Toyo Tire Group  Link...

Nitta has acquired Toyo Tire's Truck and Bus Air Spring Business.


Michelin: Joint Development Agreement with AVA Biochem for 5-HMF Commercial Scale Production  Link...

AVA Biochem AG, based in Zug, Switzerland has developed a water-based process for the conversion of sugars into the 100% bio-based molecule 5-HMF. This platform chemical is ideally positioned to replace petroleum-sourced chemicals in various mass-market applications including resins and adhesives where toxic formaldehyde is replaced.

AVA Biochem has entered into a joint development agreement with Michelin aiming to establish the world's first commercial-scale production plant for 5-HMF.


Hexpol AB: 2019 Increased Sales Driven by Acquistions  Link...

Hexpol group sales for 2019 increased by 13 percent, acquisitions and exchange rate fluctuations increased sales by 16 and 6 percent respectively. Organic sales decreased by 9 percent. The volume was higher overall, including the acquired operations of Kirkhill Rubber, Mesgo Group and Preferred Compounding.

A North American restructuring programme was initiated after the Preferred Compounding acquistion which included the closing to two production units in the US during 2019 Q4.

Lower organic volume was due to softer market demand strengthened by increased insourcing of basic compounds at some rubber compounding customers. When sales drop for customers with in-house mixing they tend to increase insourcing of compound. There was also a sharp decline in Tire & Toll compounding compared to the previous year.


RCCL Industry Analysis:

Analysis Snippet: Global & North American MRG Compounding Capacity Consolidations

Custom compounders account for a significant share of global rubber goods (MRG) compounding capacity. With continued acquisitions in the custom compounding segment it is useful to put some context around global and regional consolidation in the MRG compounding sector.

Figure 1 presents a summary of global MRG compounding capacity for 2019, broken down by region and country. The pie charts for each region are split into custom, partial and internal compounding shares. Custom compounding volume is derived from compounders supplying exclusively to external customers (converters). Partial compounding volume is for compounders that utilise compound for their own purposes and supply excess capacity to external converters. Internal compound is used solely for internal consumption.

The main MRG compounding regions are China (treated as a region due to its high compounding volume), North America, Europe, and North Asia. The most significant countries are China and the USA. It is clear from the pie charts that custom compounding is more prevalent in North America and Europe.

Figure 1 - Global Rubber Goods (MRG) 2019 Compounding Capacities and Types by Region


Herfindahl indices were calculated using the theoretical (not market adjusted) compounding capacity for each MRG company active in compounding. These capacities are based on MRG volumes and cover all MRG related market segments. Tire volumes were excluded.

It should be noted that the MRG sector has significant complexity, covering a wide range of industries, each with underlying segments and subsegments. Detailed analysis for industry specific sectors and segments is recommended as follow-on analysis.

Table 1 presents global Herfindahl indices for all MRG compounding. The H values indicate a competitive landscape which is showing a steady consolidation from 2011 to 2020. The ‘effective’ companies (provided by 1/H) shows a steady decrease from 140 to 85.

Table 1 - Global MRG Compounding Herfindahl Indices All Compounding Types


Table 2 presents North American Herfindahl indices for all MRG compounding. The H values indicate an un-concentrated industry, with a trend towards higher concentration. The effective companies reduce from 36 to 21 over the time period studied.

Table 2 - North American Compounding Herfindahl Indices All Compounding Types


Table 3 presents North American Herfindahl indices for custom and partial custom compounding. The H values show a transition from low concentration to moderate industry concentration by 2020. The effective companies reduce from 13 to 7 over the time period analysed.

Table 3 - North American Custom and Partial Custom Compounding Herfindahl Indices


Table 4 presents North American Herfindahl indices for custom compounding only. This shows a transition from low, to moderate, to high concentration over the ten year period, with the effective companies reducing from 7.2 to 3.6.

Table 4 - North American Custom Compounding Herfindahl Indices


The above considerations have importance for chemical suppliers with a shrinking customer base and consumers with high volume leverage. The impact is more significant for commoditised products where supply competition is fierce and the consumer base is restricted through the increasing influence of major custom compounders. It is notable that the MRG sector as a whole has seen major players make strategic moves to differentiated products (and compounds) which are generally lower volume and higher value.

Further analysis for industry sectors, segments and subsegments, is available from Rubber Chemical Consultants. Please contact us for details.


Semperit AG Holdings: Semperit Focusing on Industrial Rubber Sector Looking to Divest Medical Business  Link...

The Semperiti Group is to focus on the Industrial Sector, transforming into an industrial rubber specialist. The Executive and supervisory Boards have therefore decided to separate from the medical business.

The company is moving forwards with SemperGrowth200, following the succesful restructuring of the industrial business which is now organised into four segments (Semperflex, Semperform, Semperseal and Sempertrans). The initial focus in expansion and sales growth in North America.


Atul Ltd: 2019 Q3 Results  Link...

Atul Ltd a diversified chemical manufacturer with manufacturing operations in India reports results in two operating segments: Life Sciences and Performance Chemicals. Rubber Chemical Consultants tracks the Performance Chemical segment which contains rubber resins and related products (resorcinol and resorcinol formaldehyde) as well as the company results covering all segments. Currency values reported in: Millions of INR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/310414.110194.92.2
All SegmentsEBIT2019/32283.91791.527.5
All SegmentsNet Margin2019/31696.81168.945.2
Performance ChemicalsSales Revenue2019/37597.77583.8.2
Performance ChemicalsEBIT2019/31679.21429.217.5


Sumitomo Rubber Industries: Develop Technique to Observe Sulphur Cross-Link Density with Ibaraki University  Link...

Sumitomo Rubber Industries, through joint research with Ibaraki University, have developed a technique for selectively observing any of the various materials contained within a tire rubber. Utilizing a new particle beam microscope recently developed by Ibaraki University, this groundbreaking technique makes it possible to evaluate the actual rubber that is used in mass-produced tires (rather than processed test samples), creating enormous potential for future applications in materials development.

The technique has already been used to observe cross-link density at the nanometer scale. While conventional observation techniques only provide image data that shows an inextricable mixture of sulphur and other reinforcing agents, this new technique generates clear images in which specific compound components, such as silica cross-links or other reinforcing agents, are each assigned specific colours.

This detailed image data can be used to develop internal structures for tires with superior performance such as fuel efficiency and wear amongst others. The development has huge potential for the acceleration of the material development process.


Longxing Chemical Stock: Sharp Decline in Performance in 2019  Link...

A combination of weakened market demand and intensified industry competition led to a sharp decline in financial performance for 2019. Pricing levels reduced faster than feedstock pricing impacting gross margin.Market volumes reduced due to the trade war and poor domestic automotive market performance. Competition in the market has intensified with approximately one million tons of additional capacity added in the past two years - overcapaity therefore becomes an issue.


Jiangxi Black Cat Carbon Black: 2019 Preliminary Results  Link...

Preliminary results show negative net margin. The drop in performance is due to the decline in production and sales in the domestic automotive industry, combined with trade friction. Reduction in demand coupled with increased industry production volume has increased competition.


Eaton Corporation: Reaches Agreement to Sell Its Hydraulics Business  Link...

Eaton Corporation has entered into an agreement to sell its Hydraulics business to Danfoss A/S, a Danish industrial company for $3.3 billion cash. Eaton is retaining the Filtration and Golf Grip businesses currently reported in the company’s Hydraulics segment.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of the year.


Directa Plus: Joint R&D Agreement with Comerio Ercole for Industrial Graphene Application Development  Link...

Directa Plus has signed an agreement with Comerio Ercole to pursue joint research and development projects for Direct Plus' G+ graphene material in rubber, tires, plastic and non-woven materials industries. The partners will use Comerio’s own R&D laboratory, with mixing and calendering machinery, to explore prototype processes using polymers and elastomers that could in future be useful to produce and improve compounds containing G+.


CooperStandard: Advances Diversification Strategy with Three New Fortrex™ Technology Development Agreements  Link...

Cooper Standard's Advanced Technology Group has announced three new agreements to jointly develop commercial applications of its proprietary Fortrex™ chemistry platform. Two agreements are with consumer goods companies and the other is with an industrial goods company. Six agreements in total have been signed in 2019.

Fortrex™ is Cooper Standard's innovative chemistry platform used to create lightweight elastomeric materials that offer significant performance advantages over EPDM synthetic rubber, TPV and many other materials in terms of weight reduction, compression set, weathering and durability.


RCCL News:

New Report - Furnace Carbon Black Market Pricing February 2020: Available for Pre-Order  Link...
furnace carbon black feb 2020 pricing

Rubber Chemical Consultants Ltd (RCCL) a provider of client driven, bespoke rubber chemical market insight projects and reports is pleased to announce that its February 2020 Furnace Carbon Black Market Pricing report is now available for pre-order.

This report provides detailed historic, current and future market pricing for six representative reference grades produced within the regions of China, Europe and North America. Short term and long term market outlooks are provided as well as the weighted average pricing for each of the three regions.

This report is available as a package deal with RCCL's Furnace Carbon Black Industry & Markets 2020 report which will be published in March 2020.

Find out more »


Tristone Flowtech Group GmbH: Acquires Hose Plant from Anhui Zongding Sealing Co. Ltd.  Link...

Tristone Flowtech Group has acquired Anhui Zhongding Rubber Hose Products Co. Ltd, from Anhui Zongding Sealing Co. Ltd. The plant is located in Ningguo and produces mainly engine, battery cooling and air charge hoses for local Chinese OEMs. 2019 sales were 34 million Euros.


Dellner Bubenzer Group: Acquires Silentblock UK Ltd  Link...

The Dellner Bubenzer Group has acquired vibration control specialists Silentbloc UK Ltd, as part of their strategic drive to pursue growth and new opportunities in their polymer solutions business.

The new Dellner Polymer Solutions division incorporating Dellner Woodville and Silentbloc, will provide technologically advanced rubber fabrication and bonding solutions for a global market, particularly in the rail, industrial, defence, off-highway, oil and gas, mining, marine, power generation, chemical processing and furniture sectors.


Evonik Industries: New Multi-Purpose Silicone Production in Geesthacht, Germany  Link...

Evonik has inaugurated its new multi-purpose silicones manufacturing factility in Geesthacht, Germany. The increased production footprint helps to strengthen Evonik's focus on silicone and nanotechnology specialty chemical products.

The additional capacities are for a range of silicone and nanotechnology products. These include: addition-curing silicones and silyl-terminated polymers which are used as binders for adhesives and sealants in parquet adhesives, adhesives for wound care and other medical applications or in electronics such as e-mobility housings or potting materials.


Carlton Forest Group: Pyrolysis Fuel Oil Approved for Power Generation  Link...

Carton Forest's pyrolysis group (IRR Manufacturing) announced that its pyrolysis oil has been approved by a third party engine manufacturer for power generation.


Trelleborg A.B.: Divests Cernay, France Rubber Roller Unit  Link...

Trelleborg has divested a rubber roller development and manufacturing unit located in Cernay, France. This unit was part of Trelleborg's printing blankets operations which was placed in the Business Under Development segment.The buyer is the Belgian Hannecard Group.

The divested operation, which had annual sales of approximately SEK 70 M (approx 6.7 M Euro) in 2018 and profitability in line with the level for Trelleborg’s printing blankets, will be deconsolidated on January 7, 2020. The transaction will only have a negligible impact on the Group’s earnings.


Goodyear: Advancing Future Mobility with Goodyear Ventures Fund  Link...

Goodyear has announced a new venture capital fund, Goodyear Ventures, with $100 million targeted for new investments in future mobility solutions over the next 10 years.

Goodyear Ventures will continue and expand Goodyear’s growing relationships in new mobility, with a focus on partnering and investing in startups with a shared vision of sustainable, safe and new mobility experiences that make life’s connections easier every day.

Goodyear Ventures will focus on eight themes:

  • Electric and autonomous technologies
  • Connected mobility solutions
  • Next-generation public mobility
  • Next-generation aviation mobility
  • Future transportation infrastructure
  • Future maintenance and operations
  • Emerging technologies
  • New tire materials

RCCL News:

January 2020 Newsletter (Issue 17) Now Available  Link...

Rubber Chemical Consultants Ltd, a provider of client driven, bespoke rubber chemical market insight projects and reports is pleased to announce the issue of its January 2020 quarterly newsletter.

This edition provides a 2019 review for rubber chemical manufacturers and consumers looking at capacity changes, acquistions, technology introductions and more.

Regular analysis of the previous quarter's movements for manufacturers and consumers (tire, MRG, plastics) is also included.

This newsletter is free to subscribers with an official company email.

rubber chemical consultants Jan 2020 newsletter

Eaton Corporation: Completes Sale of its Automotive Fluid Conveyance Division  Link...

Eaton has completed the sale of its Automotive Fluid Conveyance Division to Quantum Capital Partners.

The Automotive Fluid Conveyance Division manufactures hydraulic power assisted steering, active ride systems, oil cooling, air conditioning and plastic components for the automotive industry. It employs approximately 1,300 people and has manufacturing facilities in the United Kingdom, Germany, the Czech Republic and China.


China Synthetic Rubber Corporation: Establishing Joint Venture Carbon Black Plant in Turkey  Link...

OYAK, Turkey’s largest occupational pension fund, has started building a carbon black production facility in cooperation with the Taiwanese International CSRC Investment Holdings Co. Ltd., the parent company of the world’s sixth-largest carbon black producer Continental Carbon. The project is to be launched in Iskenderun and will be capable of meeting the annual domestic demand of 220 thousand tons for carbon black, which has a domestic market volume of USD 260 million and is used primarily by the tire industry as well as by numerous other fields.

OYAK's intention is to integrate the facility with operations in the iron and steel sectors, thus capitilising on back stream integration. The facility will have advanced environmental protection systems for both energy recovery and emissions.


RCCL Industry Analysis:

Analysis Snippet: OYAK and China Synthetic Rubber Corporation JV Furnace Carbon Black Plant in Turkey

The proposed new furnace carbon black plant in Turkey has the potential to disrupt carbon black trade balances in Europe, CIS and Africa.

Figure 1 presents the total (Global) import volume in thousands of metric tonnes (kMT) of HS2803 into Turkey as well as the main importing regions/countries: Europe (28), Russia and Egypt. It can be seen that in recent years the volumes have been split fairly evenly between the three main importing regions/countries.

The import volume from Egypt (Birla Carbon’s Alexandria plant) was 65 kMT in 2018. This volume accounts for about one full production line at this plant. Likely scenarios are reassignment of volumes to Europe, adding further pressure to European producers, or reduction in production capacity at this plant (most probable).

The import volume from Russia was 62 kMT in 2018. This accounts for roughly 1.75 production lines in this region. Likely scenarios are reassignment of volumes to other regions and/or capacity rationalisation in CIS.

The import volume from Europe was 52 kMT in 2018. This accounts for roughly 2 production lines based on product mix. Scenarios for this volume are more complex due to the product mix which has a higher value content.

Figure 2 presents the average yearly import value in USD/MT. It is clear that the EU material has significantly higher value, the magnitude indicating a higher technology grade mix. Values for Russian and Egyptian materials indicate standard rubber grades.

Significantly more detailed analysis covering the wider implications of this new plant will be available in RCCL’s 10th Edition Furnace Carbon Black Industry & Markets 2020 Report. The related report, Furnace Carbon Black Market Pricing February 2020, will also explore future implications. These reports provide detailed supply, demand, trade and manufacturing considerations – please contact us us for more details.


Figure 1 - HS2803 Import Volumes to Turkey

turkey cb import volumes

Figure 2 - HS2803 Turkey Average Import Values

turkey cb import values

QEW Engineered Rubber: Acquires Rubber Compounding Holland  Link...

The QEW Group has acquired Rubber Compouding Holland from the Indian based Elgi Rubber group.

Rubber Compounding Holland specialises in advanced rubber compounds for many demanding products and operations including: special black compounds, coloured compounds, foam compounds, fluoroelastomers and silicones.


December (2019)

Datwyler Holding Inc: Focusing on Fast-Growing, High-Margin Sealing Business  Link...

Datwyler Group will focus on the fast-growing, high-margin Sealing business for attractive global markets and will divest the two distribution companies Distrelec and Nedis


Semperit AG Holdings: New Strategic Orientation of Industrial Sector  Link...

With the arriveal of Kristian Brok as the new COO as of January 2020, Semperit is implenting steps of its new industrial rubber strategy with focus on regional and application-related customer intimacy.

Recent restructuring in the past 2 years has delivered improved profitability for the industrial sector which moving forwards will now be organised into four segments instead of three. The business units Profiles and Rubber Sheeting will be separated from the Semperform segment and operated as a segment of their own under the name SemperSeal from 1 January 2020. By contrast, Semperform will focus on handrails, sheave and bull wheel liners for ropeways, ski foils and Engineered Solutions (SES) in future.

Expansion of production is planned in North America to reduce dependence on the European economic area, this will be accompanied by increased customer support in the region.

a new organizational unit, the Customer Excellence Center (CEC), is also being set up in order to focus more strongly on undeveloped industries, the digitization of the product portfolio and the analysis of further possible applications for Semperit's product range in future.


PolyOne Corporation: Agrees to Acquire Clariant Color and Additive Masterbatch Busines  Link...

PolyOne Corporation has entered into an agreement with Clariant to purchase its global color and additive masterbatch business. In addition, PolyOne has entered into an agreement with Clariant Chemicals India Ltd. to purchase its color and additive masterbatch business.

Clariant's color and additive masterbatch business, which had sales of $1.15 billion for the last twelve months, includes specialty technologies and solutions for high-growth global end markets, such as consumer, packaging, and healthcare. The Clariant business includes 46 manufacturing operations and technology centers in 29 countries and approximately 3,600 employees, who will join PolyOne's Color, Additives and Inks segment.

The acquisition is expected to close in the middle of 2020 subject to customary closing conditions.


Toyoda Gosei Co., Ltd: Exhibiting e-Rubber at CES 2020  Link...

Toyoda Gosei will exhibit its novel material, e-Rubber, at CES 2020 Las Vegas in January 2020.

A next-generation rubber that moves with electricity, e-Rubber can function as a soft, flexible and sensitive sensor and as an actuator capable of gentle, human-like movements. Its use in haptics devices can provide a more realistic experience by adding the sense of touch to images (sight) and sound (hearing) in augmented reality, which is expected to grow in use with the spread of 5G wireless technology.

The development of e-Rubber is one of Toyoda Gosei's strategic developments for its 2025 business plan. This focuses on new technologies, taking advantage of its knowledge in rubber, plastics and other fields gained through development and production of automotive parts and LEDs.


Cabot Corporation: Price Increase for Speciality Carbon Black Products Manufactured in Euroope  Link...

Cabot Corporation is implementing price increases for speciality carbon black products manufactured in Europe, effective January 1, 2020 or as contracts allow. The increase relates to the new IMO sulphur fuel level regulations being implemented January 2020. Price increases will vary depending on product and manufacturing plant.


Trelleborg A.B.: Expands Qingdao Tunnel Sealing Systems Facility  Link...

Trelleborg is starting local production of its Gina Gasket at its Qingdao facility following the addition of a new manufacturing line. Trelleborg’s Ridderkerk premises has designed and supplied tunnel sealing systems to projects across China for the last 15 years and to almost all immersed tunnel projects across the globe for over 60 years. Moving forward, the company’s Qingdao facility will service the Chinese market, with Ridderkerk continuing to supply to other parts of the world.


Nynas: Applies for Company Reorganisation  Link...

Nynas AB has filed for company reorganisation at Södertörn's District Court. Nynas loans have not been extended by the banks. Thus, Nynas cannot pay due debts forcing the company to apply for a reorganisation.

US sanctions against Nynas 50 percent shareholder, Venezuelan PDVSA, have eroded Nynas profitability over time. Due to PDVSA's ownership, Nynas has been affected by US financial restrictions since August 2017. Recently, the company has also been stopped from buying crude oil from Venezuela which has been replaced with other crude oils. This has resulted in increased raw material costs. As a result of the sanctions, the company had high financial prices and lost business because of the sanctions. Now, a situation has arisen where there is no longer a continuous financing of the company's operations.

A plan has been drawn up with the objective to get Nynas completely out of the sanctions in early 2020. A strategic three-year plan to achieve better profitability has also been developed and Nynas is also implementing changes in the raw material mix to the refineries. Despite these actions the banks have chosen not to support the company's plan resulting in the request for reorganisation.


Metso: Discontinuing Rubber and Poly-Met Wear Parts Manufacturing at Ersmark, Sweden Plant  Link...

As part of ongoing evaluations of its EMEA Minerals Consumables business footprint, Metso has decided to discontinue manufacturing at its Ersmark plant in Sweden. The plant will be ramped down in stages starting Q2 2020 with full closure in Q3 2020.

The Ersmark factory produces rubber and poly-met wear parts used in the mining industry. Metso is a leading player in the rubber and poly-met mill lining business with a strong service network in all the main mining markets. In addition to Ersmark, Metso has another factory continuing synthetic wear part production in Trelleborg, Sweden, and nine other factories for synthetic solutions globally.


XG Sciences: Partners with Perpetuus to Supply Graphene to North American Tire Markets  Link...

XG Sciences has entered into commercialisation and license agreements with Perpetus Advanced Materials.

The Agreements provide the commercial framework allowing the two companies to more closely collaborate in the exclusive supply of functionalized graphene into the North American market and to also collaboratively develop applications for the global marketplace. Initially, the Companies will focus efforts on elastomers, with an emphasis on tires and related applications, but may expand the relationship over time to include other markets and applications. Under the Agreements, Perpetuus will locate one or more of its patented, plasma-based surfaces-modification production plantsin the U.S. near one of XG Sciences’ graphene nanoplatelet production facilities. The collaboration contemplates both product development collaboration and high-volume commercial supply.


Trelleborg A.B.: Strenghtens Focus on Selected Segments  Link...

Trelleborg is implementing organizational changes with the aim of focusing the Group on selected segments and at the same time highlight areas where improvement in profitability must occur. The new structure will consist of three business units compared to the current five. An additional Businesses Under Development segment is also being created for intensive review of operations not currently considered well-positioned. Profitability improvements are required for these businesses over a 12-24 month timeframe for further inclusion in the Group.

Businesses under development will consist of:

  • Printing blankets operations of Trelleborg Coated Systems
  • Oil & gas operations of Trelleborg Offshore & Construction
  • Swedish and Estonian operations for speciality mouldeds components (SMC) of Trelleborg Industrial Solutions (TIS)
  • Czech operations for SMC and technical rubber products of TIS plus bicycle tire operations of Trelleborg Wheel Systems


Sirmax SpA: Opens New TPE Plant in Poland  Link...

Sirmax has opened its new TPE plant in Kunto, Poland. This is Sirmax's second plant in Poland, ant the 12th plant globally. TPE products, marketed under the Xelter brand are used for applications in automotive such as gaskets, interior components and accessories, as well as household seals and gaskets.


HÜBNER Group: Selling Automotive Segment to Gotec  Link...

HÜBNER will be divesting its automotive segment as of 1 April 2020. The business with injection-molded plastic components will be sold to the automotive supplier GOTEC Gorschlüter GmbH located in Wülfrath, Germany, close to Wuppertal. GOTEC is the world’s leading specialist for coating with rubber-metal adhesion promoters. The HÜBNER segment that will now be transferred to GOTEC includes the production of auto-body parts, car key shells, keypads and accelerator pedals. In the automotive segment HÜBNER was mainly active as a contract manufacturer.

The HÜBNER Group is continuing with the restructuring and reorientation of its Material Solutions business segment concentrating on innovative, technologically sophisticated industries and markets. This is being done by providing high-quality technical solutions that make use of plastics, composite materials and elastomers such as rubber and silicones together with increasing use of sensor systems.

The company's aim is to consolidate its leading market position in the area of door safety and sealing systems for public transport applications. In addition there will be focus on the oil and gas industry, aviation industry and healthcare material Solutions.


November (2019)

Parker Hannifin Corp: Completes LORD Acquistion  Link...

Parker Hannifin Corporation has completed its acquistion of LORD Corporation. LORD is a leading manufacturer of advanced adhesives and coatings as well as vibration and motion control technologies.


Sailun Co: JV Plant in Vietnam Produces First TBR Tire  Link...

Cooper Tire & Rubber Company and Sailun Vietnam Co., Ltd. have produced the first tire at their joint venture facility in Vietnam. The plant is expected to be operational and producing on a commercial basis in early 2020.


Mitsubishi Chemicals: Acquiring TPU Business of AdvanSource Biomaterials  Link...

Mitsubishi Chemicals is acquiring the thermplastic polyurethane elastomer (TPU) business of U.S. based AdvanSource Biomaterials Corporation (ABC) via its Mitsubishi Chemical Performance Polymers subsidiary in the U.S.ABC products are used mainly for medical devices such as cardiovascular catheters. Their share in the U.S. market has been expanding. TPU’s characteristics, such as biocompatibility, antimicrobial properties, and flexibility, make this product indispensable in the use and applications such as cardiovascular catheters and other devices designed for body insertion. The TPU market for medical devices is expected to achieve high growth in the future on the back of an aging population,


Shandong Linglong Tyre Co., Ltd: TBR Commissioning Starts at Hubei Linglong Plant  Link...

Hubei Linglont Tire Co., Ltd., Linglong's fourth domestic manufacturing plant has produced its first TBR tire and has entered the commissioning stage 16 months after the groundbreaking ceremony. Hubei Linglong Tire will cover a total area of over 1,000,000 square meters with planned floor area more than 670,000 square meters. The main products of this manufacturing base will include TBR tire, PCR tire, and OTR etc., with the aim of annual capacity of PCR reaching 12 million units, annual capacity of TBR reaching 2.4 million units, and the annual capacity of OTR reaching 60,000 units with estimated sales revenue reaching RMB five billion.


Toyoda Gosei Co., Ltd: Restructuring European Operations  Link...

Toyoda Gosei Co., Ltd (TG) will transfer the entire ownership stake in Toyoda Gosei Meteor (TGM) to an affiliate German business fund. TG has been reforming its regional earnings structure in an effort to achieve sustainable growth. The European busines has continued to struggle and TG has therefore decided to sell all of its shares in TGM. At the end of the transaction TGM and Meteor Sealing Systems LLC will no longer be consolidated subsidiaries of TG. The transaction is due for completion by end Dec 2019.


Cabot Corporation: Breaks Ground on Indonesian Carbon Black Expansion  Link...

Cabot has broken ground on its carbon black capacity expansion project in Cilegon, Indonesia. This phase of the project will add approximately 80 kMT of production capacity to be completed in 2021.


Scandinavian Enviro Systems AB: Oil Base Project with RISE and Nynas AB  Link...

The Research Institute of Sweden (RISE) and Nynas AB are launching a joint research project to develop a process for refining oil recovered from end-of-lift tyres using Enviro's recycling process.


RCCL News:

Automotive Rubber Components Market 2019 Past-Present-Future  Link...
automotive components 2019

Rubber Chemical Consultants Ltd (RCCL) a provider of client driven, bespoke rubber industry market insight projects and reports is pleased to announce the issue of a new cutting edge rubber industry report.

Global automotive rubber component market analysis for the years 2011 to 2040. Analysis covers rubber compound and component unit demand. This is segmented by region, original equipment (OE) vs replacement (RP), vehicle type and subtypes, drivetrains, component type and subtypes.

The report details the proprietary top-down market model developed specifically for analysis of the automotive rubber component market. This model builds representative historic, current and future regional car parcs by vehicle subtype using short term policies modified by future changes. Vehicle subtypes are assigned rubber components based upon their technology requirements. The final analysis is broken down by OE and RP demand.

Find out more »


Bridgestone: Americas Start At-Scale Use of Recovered Carbon Black  Link...

Bridgestone Americas announced the at-scale use of recovered carbon black (rCB) as part of its long-standing partnership with Delta-Energy Group LLC. To date Bridgestone has purchased 235 MT of rCB, by the end of 2020 Bridgestone plan to increase the use of D-E Black to 6800MT.

Bridgestone began evaluating Delta-Energy's material in 2007 and became an equity partner in late 2014. Since that time, the use of D-E Black® as a partial replacement for virgin carbon black in new tires has undergone extensive testing. This ensures compliance with the necessary standards, quality and performance.


Mahansaria Tyres: Setting up OTR Plant in India  Link...

Mahansaria Tyres are setting up a new OTR facility in Gujarat, India. The plant will be operational mid-2020 with plans to supply tires into Europe and Americas.


Birla Carbon: Forms Joint Development Agreement with CHASM Advanced Materials  Link...

Birla Carbon and CHASM Advanced Materials Inc. are joining forces to accelerate the discovery and development of novel nanomaterials for markets such as high-performance tires, novel coatings and next-generation batteries.

The joint development agreement allows the two companies to share research and engineering resources to develop and manufacture hybrid nanomaterials based on carbon substrates and carbon nanotubes. These hybrid nanomaterials combine CHASM’s nanotube enhanced carbon (NTeC) technology with Birla Carbon’s expertise in commercialization and manufacturing.


H&R Group: 2019 Q3 Results  Link...

H&R Group: Difficult market conditions impact sales and earnings. Future focus on differntiated products is being accelerated.

H&R GmbH produce speciality chemical products using state-of-the-art refineries and processes. Products include plasticisers, white oils and paraffins as well as precision plastic products. Rubber Chemical Consultants tracks H&R GmbH consolidated results, in 2017 the refining and sales segment accounted for approximately 94% of total revenue, the plasticiser share was approximately 27% of sales revenue in previous years. Currency values reported in: Millions of EUR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/3274.7283.3-3.1
All SegmentsEBITDA2019/35.118.5-72.4
All SegmentsNet Margin2019/3-5.85.3-208.6
All SegmentsEBIT2019/3-6.710.1-166.3


Toyoda Gosei Co., Ltd: Expanding Weatherstrip Production in Central China  Link...

Toyoda Gosei is expanding weatherstrip production capacity (parts for doors and windows) at Hubei Toyoda Gosei Zheng Ao Rubber and Plastics Sealing Science and Technology Co., Ltd. Weatherstrip production capacity will be approximately doubled from the FY2018 level, with completion scheduled for May 2021.


Klean Carbon: Moves Ahead with UK and USA Tire Pyrolysis Projects  Link...

Following the acquistion of Berlin based Carbon Resources Recovery GmbH, Klean is now moving ahead with the detailed engineering and design of projects in Boardman, Oregan, USA and Midlands, UK. These projects will have a base nameplate capacity of 120 MT/day producing ASTM rated oils, rCB and steel.

The UK facility will produce an oil meeting the UK's Renewable Transport Fuel Obligations which can be used as a blending stock for the production of more sustainable transportation fuels. Negotiations are currently underway with UK refineries with significant economic potential.


Trelleborg A.B.: Marketing Concept Carbon-Free Tractor Tire  Link...

Trelleborg alongside Massey Ferguson has unveiled the MF NEXT Concept Tractor fitted with new TM1000 Progressive carbon-free tires in a totally white compound. The new concept tire aims to demonstrate Trelleborg's commitment to reducing the carbon footprint of modern farm equipment.


Thai Carbon: 2019 Q2 Results  Link...

Thai Carbon: Market demand was down, however profitability improved due to operating and cost efficiencies.

Thai Carbon report in one segment: Carbon Black. Currency values reported in: Millions of THB

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue2019/21957.02096.4-6.7
Carbon BlackEBIT2019/2498.0376.832.2


Thai Lube Base PCL: 2019 Q3 Results  Link...

Thaioil is Thailand's largest refinery and supplier of petroleum products. Thaioil reports in four segments: Oil Refinery, Petrochemical & Lube Base Oil, Power Generations & Transportation & Others. Rubber Chemical Consultants Ltd tracks Thaioil's Petrochemical Segment which reports the Lube Base Oil results separately. The Lube Base oil segment produces Lube Base Oil, Bitumen and TDAE process oil. Currency values reported in: Millions of THB

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/34288.05007.0-14.41
All SegmentsEBITDA2019/3258.0222.016.22
All SegmentsNet Margin2019/3187.0158.018.4


BlackBear Carbon BV: Aiming To Develop Its Next Tire-to-Carbon-Black-Upcycling-Plant at the Port of Rotterdam  Link...

Black Bear Carbon's preference for developing its next plant is a site in the Port of Rotterdam, Netherlands. Black Bear Carbon and the Port of Rotterdam Authority will collaboratively review the technical and financial details of the cooperation and establishment of the project, aiming for confirmation on their cooperation in early December and to proceed with the timely realization of the ‘Recovered Carbon Black Nederland’ project in Rotterdam


Pyrolyx AG: Enters Five-Year rCB Supply Agreement with Continental  Link...

Continental and Pyrolyx have entered into a five-year rCB supply agreement for Continental tire manufacturing facilities worldwide. This announcement is seen as a major step in addressing the global challenge of improving the sustainability of tire manufacturing and materials consumption. The supply agreement will support Pyrolyx’s growth with additional manufacturing facilities in North America and Eastern Europe, and specifically details sales over the next five years rising to 10,000 tons per year.


Tokai Group: 2019 Q3 Results  Link...

Tokai Group: Strong headwinds continue in Asia.

Tokai Carbon Co Ltd operates in five reporting segments one of which is carbon black. Tokai carbon produce carbon black in Japan, Thailand and China. Tokai acquired Cancarb (which produces thermal carbon black) in 2014 and also acquired Sid Richardson (a furnace carbon black manufacturer with three US production facilities) mid 2018. RCCL tracks Tokai's carbon black segment. Currency values reported in: Millions of JPY

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue2019/325764.019794.030.21
Carbon BlackEBIT2019/32283.02596.0-12.1

2019/3 Consolidation of Tokai CB Ltd from September 2018 contributed to growth in net sales and operating income.


Kolon Industries: 2019 Q3 Results  Link...

Kolon Industries reports operations in five segments. The Chemical Segment contains the company's hydrocarbon resin activities, where tire resins are a minor component. Rubber Chemical Consultants tracks the company results and the Chemical Segment results. Currency values reported in: Millions of KRW

SegmentParameterPeriod20192018YoY, %Notes
ChemicalsSales Revenue2019/3200000.0224000.0-10.7
ChemicalsEBIT2019/322000.020000.010.01


Solvay: 2019 Q3 Results  Link...

Solvay operate with four reporting segments, plus corporate and business services. Rubber Chemical Consultants track the Advanced Materials segment which includes Solvay's precipitated silica operations. Currency values reported in: Millions of EUR

SegmentParameterPeriod20192018YoY, %Notes
Advanced MaterialsSales Revenue2019/31141.01082.05.51
Advanced MaterialsadjEBITDA2019/3301.0292.03.1
Advanced MaterialsadjEBIT2019/3213.0218.0-2.3
Precipitated SilicaSales Revenue2019/3115.0109.05.52


Klean Carbon: Klean Industries Acquires Carbon Resources Recovery GmbH  Link...

Klean Industries has acquired Carbon Resources Recovery (CRR) GmbH based in Berlin, Germany. CRR operate a continuous tire pyrolysis plant.


Cabot Corporation: 2019 FY and Q4 Results  Link...

Cabot Corporation: Challenging business environment continues. Reinforcement segment benefiting from 2019 customer contracts with further improvements expected moving into 2020. Actions being taken to address feedstock differentials in the specialist segment.

Cabot Corporation operate in four segments: Reinforcement Materials, Performance Chemicals, Purification Solutions and Speciality Fluids. RCCL tracks performance in the Reinforcement Materials (rubber carbon blacks) and Performance Chemicals (specialist carbon blacks, plastic compounds, metal oxides). EBIT/EBITDA figures for carbon black in the performance chemical segment use RCCL estimates. RCCL also estimates performance for total carbon black based on annual results. Currency values reported in: Millions of USD

SegmentParameterPeriod20192018YoY, %Notes
Rubber BlackSales Revenue20191815.01774.02.3
Rubber BlackEBIT2019266.0279.0-4.7
Rubber BlackSales Vol YoY %2019100.0103.0-2.9
Specialist BlackSales Revenue2019694.0731.0-5.11
Specialist BlackEBIT2019106.0142.2-25.42
Specialist BlackSales Vol YoY %201998.0110.0-10.9
Rubber BlackSales Revenue2019/4452.0467.0-3.23
Rubber BlackEBIT2019/471.064.010.94
Rubber BlackSales Vol YoY %2019/4102.0104.0-1.95
Specialist BlackSales Revenue2019/4176.0183.0-3.86
Specialist BlackEBIT2019/427.928.5-2.27
Specialist BlackSales Vol YoY %2019/497.0106.0-8.5


CooperStandard: Implementing Additional Restructuring and Cost Reduction Initiatives  Link...

Cooper Standard is implementing additional restructuring and cost reduction actions in addition to those already announced and implemented in 2018 and the first half of 2019. Additional initiatives include the transition to a global organisation structure, resizing of the SGA and engineering functions and structural cost reductions through the closure of 10 facilities.


Arlanxeo: Realligning EPDM Production Network with Closure of Its Keltan® Unit in Orange, Texas  Link...

Arlanxeo is realligning its production network of Keltan® EPDM elastomers to improve competitiveness and harmonise technology platforms across the portfolio. This will result in the closure of the production unit in Orange, Texas in Q2 2020.


Evonik Industries: 2019 Q3 Results  Link...

Evonik Industries: Resource Efficiency Segment: Difficult market conditions continuing for automotive and coatings busineses. Silica business for replacement tires stable, reduction in business for automotive sealants and silicone rubber applications.

Evonik currently reports in four segments. The silica and silane activities reside in the Resource Efficiency segment. Rubber Chemical Consultants tracks the Resource Efficiency segment. Note: Prior year values are unadjusted values for the given period. Currency values reported in: Millions of EUR

SegmentParameterPeriod20192018YoY, %Notes
Resource EfficiencySales Revenue2019/31414.01426.0-.81
Resource EfficiencyEBITDA2019/3322.0338.0-4.72
Resource EfficiencyEBIT2019/3240.0261.0-8.03
Resource EfficiencySales Vol YoY %2019/397.098.0-1.04


Hexpol AB: Closing Kardoes Rubber Site by End 2019  Link...

Hexpol is closing its Kardoes Rubber site by the end of 2019. The closure announcement, coming shortly after the acquistion of Preferred Compounding, is part of an integration and restructuring of the business.


Arakawa Chemical Industries: 2019 Q2 Results  Link...

Arakawa Chemical Industries reports in four segments. Rubber Chemical Consultants tracks results for all segments as well as those for the Adhesive segment which contains products for the tire and rubber industry. Currency values reported in: Millions of JPY

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/218331.019743.0-7.2
All SegmentsGross Margin2019/23422.04294.0-20.3
All SegmentsEBITDA2019/2645.01511.0-57.3
All SegmentsEBIT2019/246.0823.0-94.4
AdhesivesSales Revenue2019/26462.06891.0-6.2
AdhesivesEBIT2019/2199.0659.0-69.8


Orion Engineered Carbons USD: 2019 Q3 Results  Link...

Orion Engineered Carbons: Speciality and Mechanical Rubber Goods (MRG) businesses impacted by continued weakness in Asian markets and with automotive OEMs. Tire business has remained stable. Weakening global economy has also impacted other markets as the year has progressed.

Orion Engineered Carbons manufactures furnace carbon black as well as thermal, gas and lampblacks and is the third largest carbon black producer on a global basis. Orion reports results in two segments: Specialist and Rubber. Rubber Chemical Consultants tracks the two segments as well as the overall company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue2019/3370.2394.0-6.0
Carbon BlackadjEBITDA2019/368.172.6-6.2
Carbon BlackEBITDA2019/360.464.6-6.6
Carbon BlackEBIT2019/338.441.8-8.3
Specialist BlackSales Revenue2019/3122.8134.2-8.51
Specialist BlackGross Margin2019/341.448.2-14.12
Specialist BlackadjEBITDA2019/330.034.7-13.53
Specialist BlackSales Vol MT2019/360400.064700.0-6.64
Rubber BlackSales Revenue2019/3247.4259.8-4.85
Rubber BlackGross Margin2019/357.360.9-5.96
Rubber BlackadjEBITDA2019/338.137.9.57
Rubber BlackSales Vol MT2019/3196000.0202000.0-3.08


Mangalam Organics Limited: 2019 Q2 Results  Link...

Mangalam produces synthetic resins and terpene derived chemicals. For 2016 approximately 10% of revenue was derived from synthetic resins. In June 2015 a fire in the synthetic resin operation stopped production, the company has subsequently restarted production for a more limited selection of high margin products. Mangalam report for the combined segments and RCCL tracks this information. Currency values reported in: Millions of INR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/21209.81090.910.9
All SegmentsEBIT2019/2260.0244.16.5
All SegmentsNet Margin2019/2162.6185.7-12.4


October (2019)

Phillips Carbon Black Ltd: 2019 Q2 Results  Link...

Phillips Carbon Black Ltd (PCBL) produce furnace carbon black and also cogenerate electricity using the waste gas from the carbon black process. PCBL report in two segments: Carbon Black and Power, the Power segment sells back to the Carbon Black segment as well as supplying surplus electricity for external sale. All quarterly results are unaudited. Results are reported based for the period in question with no currency adjustments between reporting periods. Currency values reported in: Millions of INR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/28629.98802.6-2.0
All SegmentsEBIT2019/21118.01609.3-30.5
All SegmentsNet Margin2019/2770.51079.7-28.6
Carbon BlackSales Revenue2019/28395.08562.9-2.0
Carbon BlackEBIT2019/21250.01638.6-23.7


Longxing Chemical Stock: 2019 Q3 Results  Link...

Longxing Chemical Stock (second largest furnace carbon black producer in China) also produces chemicals and precipitated silica. Rubber Chemical Consultants tracks Longxing's furnace black and precipitated silica segments as well as quarterly company results. Currency values reported in: Millions of CNY

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/3732.6833.7-12.1
All SegmentsDirect Total2019/3627.1695.8-9.9
All SegmentsGross Margin2019/389.1137.6-35.3
All SegmentsNet Margin2019/315.234.8-56.3


Jiangxi Black Cat Carbon Black: 2019 Q3 Results  Link...

Jiangxi Black Cat Carbon Black is China's biggest producer of furnace carbon black with capacity at just over 1 million metric tonnes. Rubber Chemical Consultants tracks Jiangxi Black Cat for total financial performance as well as performance in furnace black and precipitated silica production. Currency values reported in: Millions of CNY

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/31667.11875.1-11.1
All SegmentsDirect Total2019/31534.41590.3-3.5
All SegmentsGross Margin2019/3132.8284.8-53.4
All SegmentsNet Margin2019/3-10.5133.7-107.9


Eastman: 2019 Q3 Results  Link...

Eastman: Third quarter global economic conditions deteriorated due to escalation of trade disputes. This has impacted the consumer and transportation segments. In the AFP segment, tire related pricing was impacted by competitive pricing pressures.

Eastman operate in four reporting segments. Rubber Chemical Consultants tracks Eastman's Additives & Functional Products (AFP) segment which contains tire related materials (resins, antidegradants and sulphur) and also tracks the company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/32325.02547.0-8.71
All SegmentsEBIT2019/3367.0517.0-29.0
All SegmentsNet Margin2019/3267.0412.0-35.2
Additives Functional ProductsSales Revenue2019/3832.0915.0-9.12
Additives Functional ProductsEBIT2019/3144.0186.0-22.6


Atul Ltd: 2019 Q2 Results  Link...

Atul Ltd a diversified chemical manufacturer with manufacturing operations in India reports results in two operating segments: Life Sciences and Performance Chemicals. Rubber Chemical Consultants tracks the Performance Chemical segment which contains rubber resins and related products (resorcinol and resorcinol formaldehyde) as well as the company results covering all segments. Currency values reported in: Millions of INR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/210456.310074.23.8
All SegmentsEBIT2019/22131.48469.3-74.8
All SegmentsNet Margin2019/22100.11190.276.4
Performance ChemicalsSales Revenue2019/27473.47052.16.0
Performance ChemicalsEBIT2019/21420.21216.116.8


Bridgestone: Opens New Construction and Mining Tire Factory in Thailand  Link...

Bridgestone Speciality Tire Manufacturing (Thailand) Co., Ltd. a subsidiary of Bridgestone Corporation has opened its new factor for radial construction and mining tires. Production is stated as 35 tons/day.


Murfitts Industries: rCB Production Plant Coming On Stream  Link...

Murfitt industries have recently completed a tire pyrolysis development program and are now bringing a new tire pyrolysis plant on stream.


Bridgestone: Introduction of Concept Tires Using World's First Hybrid Polymer  Link...

Bridgestone is exhibiting concept tires at the Tokyo Motor Show which utilise its recently developed high strength rubber (HSR). HSR provides significant benefits in crack and wear resistance as well as improved tensile strength and a wider operating temperature range.

In a separate announcement Bridgestone have named the HSR polymer technology as Susym. The name being derived from the words "sustain", "symphony" and "symbiosis".


Kraton Corporation: 2019 Q3 Results  Link...

Kraton Corporation: Weakening demand in China, Asian and European regions for main non-tire product groups. Tire sales volumes were up 2.4%.

Kraton Performance Polymers Inc manufacture styrenic block copolymers and other engineered polymers. Kraton acquired Arizona Chemical in January 2016. Arizona Chemical manufacture pine and hydrocarbon based resin products. Rubber Chemical Consultants tracks Kraton's reporting segment for Chemicals which covers the Arizona Chemical business activities including specialised resins for tire applications. Currency values reported in: Millions of USD

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/3182.6202.1-9.7
All SegmentsEBITDA2019/344.445.1-1.5
All SegmentsadjEBITDA2019/329.841.6-28.6
All SegmentsEBIT2019/319.827.5-27.9
All SegmentsTire Segment Sales2019/312.910.226.6


Doublestar Group Co.,Ltd: Starting Tiral Production at Shiyan, Hubei Plant  Link...

Doublestar has started trial production at its Shiyan, Hubei plant. This plant is Doublestar's third smart, industry 4.0 plant resulting from the relocation and upgrade of its subsidiary, Doublestar Dongfeng Tire.


Doublestar Group: Breaking Ground on Second Tire Pyrolysis Plant in China  Link...

Doublestar have broken ground on their second tire pyrolysis plant located at Shiyan, Hubei. The plant will have a 100 kMTpa capacity producing oil, char, steel and gas.

Doublestar's first plant with a 35 kMTpa capacity, located at Zhumadian, Henan started production in August of this year. The company plans to build a third plant in Shandong province.


Cabot Corporation: Launches TECHBLAK™ 85 Masterbatch Series for Improved Circular Economy  Link...

Cabot Corporation has launched a new black masterbatch series made from post industrial carbon black and recycled polymers. The new products are designed to assist producers in meeting sustainability targets.

The new TECHBLAK™ 85 series targets compounding, injection moulding and non-critical film applications for use in industrial, packaging and consumer markets.


Continental Rubber Group: Official Opening of Mississippi Truck Tire Plant  Link...

Continental held the official opening of their new greenfield truck tire plant in Mississippi, USA. Commercial production is due to start in early 2020, with capacity being responsive to market demand and Continental's strategic market development.


Solvay: Increasing FKM Capacity in Italy  Link...

Solvay is increasing its FKM, fluoroelastomer capacity, by neary a third at its plant in Spinetta Marengo, Italy. The increase is required to serve ongoing demand growth for high performance sealing applications in automotive, oil & gas and semiconductor industries. The extra capacity is due to come on stream by May 2021 and follows recent increases at the same site as well as at Solvay's Tecnoflon® FKM plant in Changshu, China. Solvay also produces Tecnoflon® FKM in the United States.


Kraiburg Holding GmbH: Kraiburg TPE Develops Thermoplastic Elastomer Hybrids (TEH)  Link...

Kraiburg TPE have introduced a new technology for thermoplastic elastomer hybrids (TEH). This features application specific combinations and modifications that are superior to options provided by classic thermoplastic vulcanisates (TPV).

Classic TPV, typically EPDM/PP blends have limited performance regarding contact with other media at high temperatures. Kraiburg's TEH technology allows combination of different mixtures of various elastomers and thermoplastics with crosslinking systems to form unique materials with resistance to different media and high temperatures.

TEH compounds can be used as alternatives to common crosslinked rubber compounds as well as for composite products requiring surface bonding. These materials can be processed using standard processing equipment and are completely recyclable.


Denka: Decides to Continue Producing Acetylene Black at Omuta Plant, Japan  Link...

Denka has decided to alter the plan to cease calcium carbide production at its Omuta, Fukuoka plant in Japan. The plan was previously announced on 8 November 2017. Under the revised plan, production of certain grades of acetylene black will continue past January 2020 at the Omuta plant. The reason for the change is the growing demand for acetylene black in lithium ion batteries.


Michelin: Closing La Roche-Sur-Yon Site in France  Link...

Michelin has announced plans to close the La Roche-Sur-Yon truck tire plant by the end of 2020. A recent 70 million euro investment in the site did not translate into expected results, this was due to structural transformation of the premium truck tire market in Europe and internationally. The European market is characterised by no growth, intense competition and an increasing entry level brand segment.


Penn Color: Expands Facilities in The Netherlands  Link...

Penn Color has completed the expanson of its Venray, Netherlands plant. Production capabilities have been added for highly concentrated PVC and engineering plastics color and additive masterbatches.


Chroma Color Corporation: Expands Leominster Site and Consolidation of Clinton Site  Link...

Chroma Color Corporation has completed its investment in the Leominster, MA site. The investments included structural upgrades and new compounding lines. As a result the operations at the Clinton site will be relocated to the Leominster site.


Orion Engineered Carbons: Introduce a Surface-Modified Carbon Black for Tires   Link...

Orion Engineered Carbons introduced a new surface-modified carbon black for tires at the International Elastomer Conference in Cleveland, Ohio on 9th October. The new product reduces energy loss in tread compounds which improves fuel efficiency while demonstrating good abrasion resistance.


Arlanxeo: Completes CR Polymer Plant Turnaround and Continues Modernisation of NBR FActility  Link...

ARLANXEO has completed the turnaround of its CR plant in Dormagen, Germany. This allows the plant to produce up to 70 kMTpa including increased manufacturing flexibility and speciality products.

Modernisation of the NBR plant in La Wantzenau, France is progressing well.


Trinseo S.A.: Building New TPE Pilot Factility in Hsinchu, Taiwan  Link...

Trinseo is planning a Thermoplastic Elastomers (TPE) pilot facility in Hsinchu, Taiwan. The facility will be built at its existing Hsinchu site with operation planned in 2020. Once the new pilot line in Hsinchu is operational, Trinseo will produce its custom engineered TPE and thermoplastic urethanes (TPU), including its leading bioplastics portfolio


RCCL News:

October 2019 Newsletter (Issue 16) Now Available  Link...

Rubber Chemical Consultants Ltd, a provider of client driven, bespoke rubber chemical market insight projects and reports is pleased to announce the issue of its October 2019 quarterly newsletter.

This edition focuses on analysis of the MRG market segment, with excerpts from RCCL’s white paper discussing the requirements for analysing this diverse segment.

Other content includes industry changes plus compounding volumes and transitions for the tire, rubber goods and plastics segments.

This newsletter is free to subscribers with an official company email.

rubber chemical consultants Oct 2019 newsletter

Wacker Chemie AG: Launches Production of Pyrogenic Silica at Charleston, USA Plant  Link...

Wacker has launched the production of pyrogenic silica at its Charletson, TN plant. The capacity stands at 13 kMTpa. Highly dispersible pyrogenic silica is an important formulation component for manufacturing silicone rubber.


Green Distilation Technologies: $50 Million Deal to Establish Tire Recycling Plants in South Africa  Link...

Australian based Green Distillation Technologies has signed an agreement worth up to $50 million fo establish five tyre recycling plants in South Africa. Volco Power Pty Ltd plans to build the plants in five of South Africa’s nine provinces depending on the volume of tyres available. The GDT plants will consist of six tyre processing modules and will process approximately 700,000 old tyres per year into eight million litres of oil, 7700 tonnes of rCB and 2000 tonnes of steel.


Nokian Tires: Celebrates Opening of Its First US Factory  Link...

Nokian Tyres celebrated the opening of its North American factory in Dayton, Tennessee. The factory is currently in the trial production stage and will be ready to make tires for commercial use in early 2020. The eco-friendly facility will build a robust mix of all-season and all-weather products to meet consumer needs and fill rising demand for its products.


Bridgestone: Firestone Industrial Products Expands Operations in Europe  Link...

Firestone Industrial Products Company (FSIP) is making a significant investment to expand the company’s operations in Central Europe. FSIP is expanding its Wolsztyn, Poland plant where the company manufacturers air suspension systems for commercial and passenger vehicles.

The expanded plant will be equiped with new, innovative machinery and equipment and an ISO class 8 cleanroom, enabling the company to supply well-known European automotive OEMs. The new facitliy will be operational by the second half of 2020.


September (2019)

Steelastic: Introduces Calenderless Manufacturing Cell  Link...

Steelastic has built a calenderless manufacturing cell in its Akron facility. This will enable tire manufacturers to test run their own materials to produce the full range of tire reinforcement components.

Steelastic's extrusion-based manufacturing process for belt, breaker, body ply, cap and inner liner eliminates the need for expensive and inflexible calendering and off-line processing equipment.


Michelin: Announces Decision to Close Bamberg Site, Germany  Link...

The Michelin Group has decided to cease activities at its Bamberg site in Germany by early 2021. The site mainly manufacturers premium 16 inch PC tires, a market segment seeing sharp decline in global demand as well as strong competition from Asian manufacturers.


Continental Rubber Group: Enhancing Long-term Competitiveness  Link...

Continental have released details of their Strategy 2030 and Transformation 2019-2029 structural program.

The plan is looking for a reduction in gross costs of around €500 million annually from 2023 as well as changes in up to 20 thousand jobs worldwide with simultaneous expansion of growth areas.

Changes directly affecting the rubber segments include the planned cessation of truck tire production in Petaling Jaya, Malaysia by end of 2019.

The tire business is included as one of the company's key growth areas where it is promoting organic growth with the goal of becoming one of the top three suppliers worldwide.

Expanding business with industrial customers and end customers beyond original equipment is also a goal where they are targetting a transition from 30 to 40% of replacement market share. This covers conveyor belts, hoses, spare tires and auto spare parts in the agricultural, railway, mining and construction industries. The aim being to reduce dependency on automobile manufacturers which is subject to cyclical economic trends.

Further projects will be announced as the structural program progresses. These include certain projects that have already been defined and are related to other strategic options such as the possible sale of individual business segments and subsegments.


Goodyear: Planning to Replace Petroleum-Derived Process Oils with Soybean Oil by 2040  Link...

According to Goodyear's 2018 CSR the company is planning to replace petroleum-derived processing oils with soybean oil in its tires by 2040. The short term goal is to increase its soybean oil consumption by 25% by 2020.

Goodyear currently produces three tire lines using soybean oil: Assurance WeatherReady, Eagle Exhilarate and Eagle Enforcer All-Weather.


Michelin: Upgrades Bad Kreuznach Plant for SUV Tire Production  Link...

Michelin has completed the upgrade of the Bad Kreuzhach plant in Germany. A new high tech SUV production line for 18 and 19 inch rim diameters has replaced an older line which produced lower (14 and 15 inch) rim size tires.


Americhem Inc: Ground Breaking for Expansion at Morrisville, PA Plant  Link...

Americhem is starting the expansion of their Morrisville, PA plant on 2nd October 2019. The expansion will include and isolated clean compounding room that will house up to six new compounding lines. The new facility will allow Americhem Engineered Compounds unique capabilities to produce compounds meeting the most stringent medical device requirements.


Cabot Corporation: Announces Grand Opening of Wuhai Fumed Silica Plant  Link...

Cabot Corporation announced the opening of its newest fumed silica manufacturing facility in Wuhai, Inner Mongolia, China. The state-of-the-art plant has a capacity of approximately 8 kMTpa which will primarily serve the rapidly growing market in China.

The project is a joint venture with Inner Mongolia Hengyecheng Silicone Co., Ltd. Cabot owns 80% of the equity.


Lyondellbassell: Adds New Production at Knapsack Creating World's Largest Polypropylene Compounding Facility  Link...

LyondellBassell has started up a fifth production line at its Knapsack, Germany site. Total annual production capacity for the site is now more than 200 kMTpa with then new line adding 25 kMTpa.


PolyOne Corporation: Announce Availability of OnColor™ RC Environmetal Black  Link...

PolyOne have announced the availability of a new black colour concentrate made from Bolder Black®, a reclaimed carbon black made from end-of-life tires. When used in place of traditional carbon black, OnColor RC Environmental Black maintains expected performance levels in plastics. It passes REACH and RoHS requirements and is available for use in multiple resins across a variety of industries and applications, such as automotive, appliances, electronics, and office furniture.


HÜBNER Group: Expanding Hungarian Operations  Link...

HÜBNER group has completed construction of a fourth production hall at its Hungarian location. The location produces gangway and door sealing systems for buses and trains.


Hutchinson S.A.: Acquires PFW Aerospace  Link...

Hutchinson has reached an agreement with Airbus SE and Safeguard to acquire Speyer, Germany-based PFW Aerospace GmbH

PFW Aeorspace manufactures tubes, ducts and structural assemblies for aircraft supplying mainly to Airbus and Boeing.


Petronas: Completes Acquisition of Da Vinci Group B.V.  Link...

Petronas Chemicals Group has acquired the Da Vinci Group, a holding company for BRB International BV. Da Vinci's operations include manufacture of silicones, lube oil additives and chemicals. The BRB silicones business include production of speciality silicones including emulsions, antifoams, water replleants, elastomers, lubricants, silanes, resins and silicone polyethers.


Hankook: Postpones Rácalmás, Hungary TBR Plant Expansion   Link...

Hankook tire has reportedly postponed the planned investment at its Rácalmás, Hungary plant.


DRT: Making Two Large-Scale Investments in France  Link...

DRT is planning to build a new terpene phenolic plant at its Lesperon site in France. This site will compliment the current site in Vielle-Saint-Girons, France. DRT's total capacity for terpene phenolic resins will increase by more than 50%. The new plant is scheduled for competion by end 2020.

A new hydrogenated rosin plant will also be built in Vielle-Saint-Girons. This will produce products with the highest degree of hydrogenation available thereby securing current and future market requirements. The plant is expected to be completed in the first half of 2021.


SIKA Group: Acquires Crevo-Hengxin, China  Link...

Sika has agreed to acquire Crevo-Hengxin, a Chinese manufacturer of silicone sealants and adhesives used in industry and construction applications. Crevo-Hengxin is located in Changshu, 50 km north of Suzhou.

Crevo-Hengxin is a family-owned manufacturer of a broad range of silicone products used for facades, fenestration, insulated glass, interior finishing and other sealing and bonding applications. In addition, the company holds a leading position as supplier of silicones for the growing solar industry.


RCCL News:

Furnace Carbon Black Market Pricing August 2019  Link...
furnace carbon black market pricing aug 2019

Rubber Chemical Consultants Ltd (RCCL) a provider of client driven, bespoke rubber chemical market insight projects and reports is pleased to announce the issue of a new cutting edge rubber chemical industry analysis report.

Furnace carbon black is one of RCCL’s core competencies being able to draw upon 30+ years of industry and market experience in this area. On-going consultancy work with furnace carbon black manufacturers and end users ensures information is up to date and relevant.

The report covers market pricing drivers for China, Europe and NAFTA with detailed analysis for each region. This report is a must for those wishing to benchmark performance, analyse opportunities or understand potential threats. This second edition has been upgraded to include short term market analysis as well as regional weighted average grade pricing. This report provides realistic analysis of furnace carbon black market pricing, other report offerings fall way short in their accuracy and understanding.

RCCL provides client support for purchasers of this report as well as discounted rates for additional furnace carbon black industry analysis.


JSR Corporation: Launches New SBR with Improved Strength, Wear Resistance and Durability  Link...

JSR Corporation has developed and launched a new styrene-butadiene rubber (SBR) with siginifcantly improved strength, wear resistance and durability.

The new material combines JSR's unique molecular design technology with hydrogenation technology to optimise the number of double bonds and increase the entanglements between rubber molecules. The net result is improved stress distribution with the strength improved by a factor of about 2.

Tires using the new SBR have been shown to improve wear resistance by more than 50% while maintaining low fuel consumption and grip. An additional benefit of the hydrogenation technology is improved performance over time due to reduced deterioration of performance.


BKT: Carbon Black Production to Achieve 100% Capacity by 2021  Link...

BKT's new carbon black plant has ramped up to 80 kMTpa production capacity with the intention to achieve 130 kMTpa by 2021.


August (2019)

BASF: DIC to Acquire BASF's Global Pigments Business  Link...

BASF and DIC have reached an agreement on the acquistion of BASF's global pigment business. The transaction is due to close Q4 2020. BASF’s pigments business with around 2,600 employees globally generated sales of approximately €1 billion in 2018.

DIC is active in three segments: Packaging & Graphics, Functional Products and Color & Display. Color & Display includes a portfolio of pigments. The acquistion of BASF's pigment portfolio will help DIC achieve its growth goals and position asa one of the leading pigment suppliers globally.


Nexen Tire Corp: Grand Opening of New European Plant, Žatec, Czech Republic.  Link...

Nexen Tire has held the grand opening ceremony for its new European plant located in Žatec, Czech Republic. The plant began operations in April 2019.


Longxing Chemical Stock: 2019 Q2 Results  Link...

Longxing Chemical Stock: Q2 Net profit down 86% YoY mainly due to the impact of lower sales prices due to weakening market conditions. During the period the sales price dropped 10.54% while the manufacturing cost dropped 2.44%.

Longxing Chemical Stock (second largest furnace carbon black producer in China) also produces chemicals and precipitated silica. Rubber Chemical Consultants tracks Longxing's furnace black and precipitated silica segments. Currency values reported in: Millions of CNY

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/2720.1783.8-8.1
All SegmentsNet Margin2019/27.231.3-77.1
Carbon BlackSales Revenue2019/21321.11367.0-3.4


Jiangxi Black Cat Carbon Black: 2019 Q2 Results  Link...

Jiangxi Black Cat Carbon Black: Results impacted by headwinds in domestic automotive industry and poor global trading conditions. Black Cat have accelerated their plans to implement the first overseas production base (Belarus) project. The new 20 kMTpa speciality carbon black production line has now come on-line and is expected to improve profitability.

Jiangxi Black Cat Carbon Black is China's biggest producer of furnace carbon black with capacity at just over 1 million metric tonnes. Rubber Chemical Consultants tracks Jiangxi Black Cat for total financial performance as well as performance in furnace black and precipitated silica production. Currency values reported in: Millions of CNY

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/21611.52036.7-20.9
All SegmentsNet Margin2019/2-41.9171.3-124.4
Carbon BlackSales Vol MT2019/2453300.0487300.0-7.0


Jinneng Science & Technology: 2019 Q2 Results  Link...

Jinneng Science & Technology: Raw material prices increased due to supply-side reform and environmental protection policies. Tire demand was weak impacting demand and prices. The Qingdao project is in progress with the carbon black facility being approximately 10% complete.

Jinneng Science & Technology have an integrated chemical operation including coking, chemical production, coal tar deep processing, carbon black and silica production. RCCL follows Jinneng's full operational results (all segments) and studies individual carbon black and silica segment performance. Currency values reported in: Millions of USD

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/22178.72172.8.3
All SegmentsGross Margin2019/2348.6387.0-9.9
All SegmentsNet Margin2019/2246.8264.6-6.7


Tokai Group: 2019 Q2 Results  Link...

Tokai Group: Volumes down to tire customers in Asia. Robust volumes in other regions.

Tokai Carbon Co Ltd operates in five reporting segments one of which is carbon black. Tokai carbon produce carbon black in Japan, Thailand and China. Tokai acquired Cancarb (which produces thermal carbon black) in 2014 and also acquired Sid Richardson (a furnace carbon black manufacturer with three US production facilities) mid 2018. RCCL tracks Tokai's carbon black segment. Currency values reported in: Millions of JPY

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue2019/227287.014917.082.91
Carbon BlackEBIT2019/22262.02383.0-5.1


Scandinavian Enviro Systems AB: Signs Term Sheet with TreadCraft Carbon LLC  Link...

Scandinavian Enviro Systems has signed a term sheet with TreadCraft Carbon LLC, located in Buffalo, NY, USA meaning both parties have agreed on the main conditions for a plant deal. The final agreement is expected during the second half of 2019 including the sale of a recycling plant as well as license revenue and future profits.


Ecolomondo Inc: Breaks Ground on New TDP Plant in Hawkesbury, Ontario  Link...

Ecolomondo has broken ground on its Thermal Decompostion Process (TDP) plant located in Hawkesbury, Ontario. This facility will be used as a technology showpiece to promote future technology sales. When operational the facility is expected to process approximately 18 kMTpa of waste tires.


Evonik Industries: Agrees Joint Venture Fumed Silca Plant with Wynca in China  Link...

Evonik Industries and the Chinese company Wynca have agreed to form a joint venture. The new company, in which Evonik will hold 60 percent, will produce fumed silica marketed under the name AEROSIL®. The product is used in transparent silicones, coatings and paints, modern adhesives as well as non-combustible high-performance insulation materials. The joint venture, Evonik Wynca (Zhenjiang) Silicon Material Co., Ltd., plans to build a fumed silica production facility in the Zhenjiang New Material Industry Park (Jiangsu Province, China), investing an amount in the mid double-digit million Euro range. The facility, with a projected annual output of 8,000 metric tons is scheduled to become operational in 2021. The overall project still requires the approval of the relevant corporate bodies and the competent authorities.


China Synthetic Rubber Corporation: 2019 Q2 Results  Link...

China Synthetic Rubber Corporation (CSRC) manufacture furnace carbon black, biotech and electronic products. Rubber Chemical Consultants Ltd tracks the Carbon Black segment which accounts for approximately two thirds of CSRC's total sales revenue (2016). Currency values reported in: Millions of TWD

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue2019/24219.04302.5-1.9
Carbon BlackEBIT2019/2-37.3385.2-109.7


Cabot Corporation: Increasing Feedstock Surcharge for Rubber Carbon Black Products in North America  Link...

Effective 1st October 2019 (as contracts allow) a feedstock surcharge of $0.03 per pound will be applied to all carbon black products sold by Cabot in North America. This replaces the previously announced feedstock surcharge of $0.01 per pound that has been in effect since 1st April 2019.

Cabot use primarily crude oil derived feedstocks for rubber carbon blacks. This market is being influenced by changes in types of crude oil products and an increase in demand for low sulphur fuel oil due to the 2020 IMO regulation. This is influencing the type, quality and availability of feedstock required to produce carbon black.


H&R Group: 2019 Q2 Results  Link...

H&R Group: Increasing competition in European market with continued exacting and difficult challenges on the global market.

H&R GmbH produce speciality chemical products using state-of-the-art refineries and processes. Products include plasticisers, white oils and paraffins as well as precision plastic products. Rubber Chemical Consultants tracks H&R GmbH consolidated results, in 2017 the refining and sales segment accounted for approximately 94% of total revenue, the plasticiser share was approximately 27% of sales revenue in previous years. Currency values reported in: Millions of EUR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/2263.9279.5-5.61
All SegmentsEBITDA2019/219.417.511.42
All SegmentsEBIT2019/28.49.0-6.7
All SegmentsNet Margin2019/25.45.32.5


Rutgers: Rain Carbon Commissioning New Hydrogenated Hydrocarbon Resins Facilityin Germany  Link...

Rain Carbon Inc, initiated the phased start-up of its hydrogenated hydrocarbon resins production facility in Castrop-Rauxel, Germany. Once fully operational in Q2 2019 the capacity will be 50 kMTpa and the plant will form the cornerstone of Rain Carbon's Advanced Materials product segment.


Domo Chemicals: Acquiring Solvay's Performance Polyamide Facilities  Link...

Solvay and BASF have reached an agreement with Domo Chemicals whereby Domo Chemicals will acquire Solvay's Performance Polyamide facilities needed to be divested to a third party in order to facilitate the divestment of Solvay's remaining polyamides business to BASF.

Domo will acquire facilities at Belle-Etoile and Valence, as well as a stake in a newly created joint venture between BASF and Domo in Chalampé (France). They also involve sites in Gorzow (Poland), Blanes (Spain) and commercial activities in Germany and Italy.

BASF will acquire all the activities that are not included in the remedy package and that are part of the original agreement between Solvay and BASF signed at the end of 2017.

The full transaction is expected to be completed by end of 2019.


Thai Carbon: 2019 Q1 Results  Link...

Thai Carbon: Business conditions showing improvement versus previous year. Operating profit up, however net margin down due to exchange losses and lower share of income from associates due to changing market conditions.

Thai Carbon report in one segment: Carbon Black. Currency values reported in: Millions of THB

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue2019/12151.02015.26.71
Carbon BlackEBIT2019/1479.0415.815.2


Mangalam Organics Limited: 2019 Q1 Results  Link...

Mangalam produces synthetic resins and terpene derived chemicals. For 2016 approximately 10% of revenue was derived from synthetic resins. In June 2015 a fire in the synthetic resin operation stopped production, the company has subsequently restarted production for a more limited selection of high margin products. Mangalam report for the combined segments and RCCL tracks this information. Currency values reported in: Millions of INR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/1910.8877.13.8
All SegmentsEBIT2019/1185.8156.119.0
All SegmentsNet Margin2019/1150.6120.724.7


Cabot Corporation: 2019 Q3 Results  Link...

Cabot Corporation: Reinforcement segment impacted by margin reductions in China and reduced volumes associated with lower automotive production. Speciality Carbons impacted by less favourable product mix due to weakness in automotive and fiber products.

Cabot Corporation operate in four segments: Reinforcement Materials, Performance Chemicals, Purification Solutions and Speciality Fluids. RCCL tracks performance in the Reinforcement Materials (rubber carbon blacks) and Performance Chemicals (specialist carbon blacks, plastic compounds, metal oxides). EBIT/EBITDA figures for carbon black in the performance chemical segment use RCCL estimates. RCCL also estimates performance for total carbon black based on annual results. Currency values reported in: Millions of USD

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue2019/3633.0661.0-4.21
Carbon BlackEBIT2019/397.4113.9-14.5
Rubber BlackSales Revenue2019/3461.0466.0-1.1
Rubber BlackEBIT2019/372.074.0-2.72
Rubber BlackSales Vol YoY %2019/398.0106.0-7.53
Specialist BlackSales Revenue2019/3172.0195.0-11.84
Specialist BlackEBIT2019/325.439.9-36.45
Specialist BlackSales Vol YoY %2019/3100.0117.0-14.5


Thai Lube Base PCL: 2019 Q2 Results  Link...

Thaioil is Thailand's largest refinery and supplier of petroleum products. Thaioil reports in four segments: Oil Refinery, Petrochemical & Lube Base Oil, Power Generations & Transportation & Others. Rubber Chemical Consultants Ltd tracks Thaioil's Petrochemical Segment which reports the Lube Base Oil results separately. The Lube Base oil segment produces Lube Base Oil, Bitumen and TDAE process oil. Currency values reported in: Millions of THB

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/24827.05026.0-4.01
All SegmentsEBITDA2019/2436.0463.0-5.82
All SegmentsNet Margin2019/2322.0360.0-10.6


Kolon Industries: 2019 Q2 Results  Link...

Kolon Industries reports operations in five segments. The Chemical Segment contains the company's hydrocarbon resin activities, where tire resins are a minor component. Rubber Chemical Consultants tracks the company results and the Chemical Segment results. Currency values reported in: Millions of KRW

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/21149000.01166000.0-1.51
All SegmentsEBIT2019/262000.054000.014.8
All SegmentsNet Margin2019/215000.029000.0-48.32
ChemicalsSales Revenue2019/2199000.0217000.0-8.3
ChemicalsEBIT2019/221000.021000.0.0


Nichirin Co., Ltd: Stopping UK Production Mid 2020   Link...

Nichirin have decided to stop UK production of automotive hoses (air conditioning and brake) by mid 2020. Production will be transfered to the Spanish Subsidiary and other groups. Reasons for the action include closure of Honda plants in Europe as well as Brexit uncertainty.


Goodyear: Planning Restructuring in USA  Link...

Goodyear revealed that it is planning to restructure its US operations in order to improve competitiveness. The plan being studied aims to reduce low-value, high cost capacity in the US. The plans are of similar scale and benefit to those being undertaken by Goodyear in Germany. These plans were highlighted in the recent Q2 financial analysis call.


Panama Petrochem Ltd: 2018/9 Full Year Results  Link...

Panama Petrochem supplies customised petroleum products to multiple industries including the rubber industry. Process oils are the primary product for the rubber industry segment. Results are not segmented by industry, RCCL tracks the company consolidated results. Currency values reported in: Millions of INR

SegmentParameterPeriod20182017YoY, %Notes
All SegmentsSales Revenue201812693.313458.1-5.7
All SegmentsEBITDA2018999.11092.0-8.5
All SegmentsNet Margin2018518.8609.7-14.9


Orion Engineered Carbons: 2019 Q2 Results  Link...

Orion Engineered Carbons: Challenging market environment continues. Q2 results down versus prior year's record quarterly results. Volumes up for speciality, however revenues impacted by product mix. Rubber goods segment performed well, however the segment is short of earning its cost of capital, therefore surcharges and price increases have been implemented to continue the upward performance of the Rubber segment.

Orion Engineered Carbons manufactures furnace carbon black as well as thermal, gas and lampblacks and is the third largest carbon black producer on a global basis. Orion reports results in two segments: Specialist and Rubber. Rubber Chemical Consultants tracks the two segments as well as the overall company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20192018YoY, %Notes
Carbon BlackSales Revenue2019/2399.0391.61.91
Carbon BlackadjEBITDA2019/271.581.1-11.9
Carbon BlackEBITDA2019/266.9106.7-37.3
Carbon BlackEBIT2019/241.582.5-49.7
Carbon BlackSales Vol MT2019/2270500.0275600.0-1.9
Rubber BlackSales Revenue2019/2259.7248.94.32
Rubber BlackadjEBITDA2019/240.535.912.8
Specialist BlackSales Revenue2019/2139.3142.7-2.43
Specialist BlackadjEBITDA2019/231.045.2-31.4


RCCL Industry Analysis:

Analysis Snippet: Orion Engineered Carbons (OEC) ajdEBITDA/MT

The figure presents OEC's quarterly segmental performance measured by adjEBITDA/MT. While the specialist segment has substantially higher values relative to the rubber segment, it shows a steady downward progression. This is attributable to feedstock pricing pressures as well as product mix effects. The rubber segment has recovered to values previously seen in 2014, this recovery is due to cost efficiencies as well as price increases. The rubber segment recovery is also in line with general feedstock pricing trends, it is easier to implement non-index price increases when variable costs are high.

OEC 2019 Q2

Amaseuro Holdings: GRI Breaks Ground on New Mixing Plant in Sri Lanka  Link...

GRI is building a new mixing plant in the Mirigama Export Processing Zone serving its speciality tires plant in Badalgama, Sri Lanka. Phase one if for 100 MT compound per day. When fully operational the capacity will be expanded to 200 MT per day.


Birla Carbon: Increasing Specialty Carbon Black Prices in North America  Link...

Birla Carbon is increasing North American Speciality carbon black prices by 9% effective 1st September 2019. The price increases are due to increasing carbon black feedstock costs. In addition, a revised schedule of fees for non-standard package services is also being implemented at the same time.


Solvay: 2019 Q2 Results  Link...

Solvay operate with four reporting segments, plus corporate and business services. Rubber Chemical Consultants track the Advanced Materials segment which includes Solvay's precipitated silica operations. Currency values reported in: Millions of EUR

SegmentParameterPeriod20192018YoY, %Notes
Advanced MaterialsSales Revenue2019/21178.01123.04.91
Advanced MaterialsadjEBITDA2019/2300.0342.0-12.3
Advanced MaterialsadjEBIT2019/2218.0267.0-18.4
Precipitated SilicaSales Revenue2019/2113.0114.0-.92


Evonik Industries: 2019 Q2 Results  Link...

Evonik Industries: Resource Efficiency Segment seeing weaker market environment particularly for automotive and coatings businesses. Higher prices in precipitated silica business offset by lower volumes.

Evonik currently reports in four segments. The silica and silane activities reside in the Resource Efficiency segment. Rubber Chemical Consultants tracks the Resource Efficiency segment. Note: Prior year values are unadjusted values for the given period. Currency values reported in: Millions of EUR

SegmentParameterPeriod20192018YoY, %Notes
Resource EfficiencySales Revenue2019/21404.01479.0-5.11
Resource EfficiencyEBITDA2019/2325.0366.0-11.22
Resource EfficiencyEBIT2019/2243.0281.0-13.5
Resource EfficiencySales Vol YoY %2019/296.03


Arakawa Chemical Industries: 2019 Q1 Results  Link...

Arakawa Chemical Industries reports in four segments. Rubber Chemical Consultants tracks results for all segments as well as those for the Adhesive segment which contains products for the tire and rubber industry. Currency values reported in: Millions of JPY

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/118226.019758.0-7.8
All SegmentsEBITDA2019/11599.01704.0-6.2
All SegmentsEBIT2019/1874.01073.0-18.5
All SegmentsNet Margin2019/1501.0776.0-35.4
AdhesivesSales Revenue2019/16592.07210.0-8.6
AdhesivesEBIT2019/1362.0473.0-23.5


Chromaflo Technologies LLC: Acquires Liquid Colours (Pty.) Ltd.  Link...

Chromaflo Technologies has acquired the colorant dispersion division of Liquid Colours further enhancing Chromaflo Technologies’ position in the sub-Saharan African region. The newly acquired colorant dispersion division includes pigment dispersions and colorant technologies for decorative paint point of sale, in-plant systems, industrial coatings and other applications which will be integrated into Chromaflo’s recently built plant in Johannesburg. The transfer of product lines, technology and personnel from the Liquid Colours’ dispersions division to Chromaflo will take place over the next twelve months.


Doublestar Group Co.,Ltd: Tire Pyrolysis Plant Start Up  Link...

Doublestar group have started production at a new tire pyrolysis plant in Henan, China. The plant can process 100 kMTpa of tires producing 45 kMTpa oil, 35 kMTpa char, 12 kMTpa steel cord and 8 kMTpa of gas. Doublestar are planning to build two more tire pyrolysis plants located in Hubei and Shandong provinces.


July (2019)

Jiangxi Black Cat Carbon Black: Announcement of Establishment of Overseas Subsidiaries  Link...

Having completed its production base plans in China, Jiangsi Black Cat are looking to expand under the implementation of the 'One Belt, One Road' policy. According to a 12th July filing, Black Cat have formulated a strategic plan for international development. The first move is a planned investment to build their first overseas production base in Belarus. Initial investment is for the setting up of a subsidiary: Jiangxi Black Cat Belarus Co Ltd which will oversea feasability and follow-on activities.


Toyo Tire & Rubber Co. Ltd: Establishment of New Tire Plant in Serbia  Link...

Toyo Tire Corporation is planning to construct a new tire plant located at Indijia City, Serbia.

The plant will produce highly value added products and is intended to offer regional sourcing for European and Russian customers currently supplied from Japan and Malaysia.

The plant will be operated as a sophisticated smart factory incorporating IoT (Internet of Things) providing a new level of competitive manufacturing. Construction will begin in May 2020 with operations planned to start January 2022. The capacity is expected to be five million PC tires pa by summer 2023.


Atul Ltd: 2019 Q1 Results  Link...

Atul Ltd a diversified chemical manufacturer with manufacturing operations in India reports results in two operating segments: Life Sciences and Performance Chemicals. Rubber Chemical Consultants tracks the Performance Chemical segment which contains rubber resins and related products (resorcinol and resorcinol formaldehyde) as well as the company results covering all segments. Currency values reported in: Millions of INR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/19933.08880.611.9
All SegmentsEBIT2019/11974.01282.853.9
All SegmentsNet Margin2019/11297.3841.954.1
Performance ChemicalsSales Revenue2019/17327.76422.614.1
Performance ChemicalsEBIT2019/11467.7842.874.1


Kraton Corporation: 2019 Q2 Results  Link...

Kraton Performance Polymers Inc manufacture styrenic block copolymers and other engineered polymers. Kraton acquired Arizona Chemical in January 2016. Arizona Chemical manufacture pine and hydrocarbon based resin products. Rubber Chemical Consultants tracks Kraton's reporting segment for Chemicals which covers the Arizona Chemical business activities including specialised resins for tire applications. Currency values reported in: Millions of USD

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/2197.4200.2-1.41
All SegmentsadjEBITDA2019/241.936.913.4
All SegmentsEBITDA2019/239.040.3-3.4
All SegmentsEBIT2019/221.222.6-6.12
All SegmentsTire Segment Sales2019/213.011.513.13
All SegmentsSales Vol MT2019/2103800.0110800.0-6.3


Birla Carbon: Birla Carbon North America Price Index Change  Link...

Birla Carbon is changing all North American price formulas to use the USG 0.5S FO index effective 1st August 2019. The change is being driven by the upcoming IMO regulations which are having a signficant impact on carbon black feedstock pricing. Formulas for other regions will be adjusted based on individual region requirements.


Eastman: 2019 Q2 Results  Link...

Eastman continuing to experience challenging global economic conditions. Additional pricing pressure in the Functional Additives segment due to increased competition which is affecting the tire additives business.

Eastman operate in four reporting segments. Rubber Chemical Consultants tracks Eastman's Additives & Functional Products segment which contains tire related materials (resins, antidegradants and sulphur) and also tracks the company results. Currency values reported in: Millions of USD

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/22363.02621.0-9.81
All SegmentsEBIT2019/2371.0491.0-24.4
All SegmentsNet Margin2019/2259.0344.0-24.7
Additives Functional ProductsSales Revenue2019/2823.0942.0-12.62
Additives Functional ProductsEBIT2019/2147.0188.0-21.83


Orion Engineered Carbons: Price Increases for North American Speciality and Rubber Carbon Blacks  Link...

Orion Engineered Carbons S.A. has announced North American price increases effective September 1, 2019 (or as contracts allow). Sales prices for rubber grade carbon black will increase by $0.08/lb and specialist by $0.07/lb for all carbon black produced and sold in North America.

Orion will increase the base price of rubber grade carbon black by $0.04/lb. This surcharge is necessary due to the impact of IMO and EPA mandates which are affecting the availability and price of certain qualities of feedstock oil. The changing relationship between carbon black feedstock pricing and the traditionally used high sulphur fuel oil index will necessitate quarterly reviews of this surcharge, however rapidly changing market conditions may require more frequent review.

For speciality grade carbon black requiring low sulphur feedstock the current surcharge is $0.07/lb which will also be adjusted in a responsive manner.


Trelleborg A.B.: Initiating Cost Cutting Measures Targetting Wheel Systems and Industrial Solutions Businesses  Link...

Trelleborg A.B. is intiating cost cutting measures targetted mainly at its Wheel Systems and Industrial Solutions business segments. This is in response to a trend shift observed in Q2 2019 coupled with intensified political tensions and global trade conflicts which are negatively impacting agricultural tire sales in Europe and APAC in particular.


Yokohama Rubber: Develops High Productivity Catalyst System for Butadiene Production from Bioethanol  Link...

Yokohama Rubber via joint research with the National Institute of Advanced Industrial Science and Technology and the Advanced Materials Research Institute for High-Speed Materials, have developed a catalyst system with the world's highest productivity to produce butadiene from bioethanol. The butadiene was succesfully converted to butadiene rubber. In line with sustainability goals, the objective is to commercialise the production of synthetic rubber from biomass by 2030.


Phillips Carbon Black Ltd: 2019 Q1 Results  Link...

Phillips Carbon Black Ltd (PCBL) produce furnace carbon black and also cogenerate electricity using the waste gas from the carbon black process. PCBL report in two segments: Carbon Black and Power, the Power segment sells back to the Carbon Black segment as well as supplying surplus electricity for external sale. All quarterly results are unaudited. Results are reported based for the period in question with no currency adjustments between reporting periods. Currency values reported in: Millions of INR

SegmentParameterPeriod20192018YoY, %Notes
All SegmentsSales Revenue2019/19115.27814.216.6
All SegmentsEBIT2019/11524.31453.34.9
All SegmentsNet Margin2019/1634.2975.4-35.0
Carbon BlackSales Revenue2019/18885.57545.417.8
Carbon BlackEBIT2019/11252.11366.0-8.3
PowerSales Revenue2019/1396.3424.7-6.7
PowerEBIT2019/1272.2309.8-12.1


Michelin: Considering Future of Bamberg Plant in Germany  Link...

Michelin is considering the future of its car tire plant in Bambery, Germany. This plant specialises in the production of smaller sized pc tires, a market facing intense competition from imports as well as a declining domestic market. Michelin has entered into negotiations with the plant's works council and unions to examine future options.


Toyo Tire & Rubber Co. Ltd: Adding Capacity at Georgia, USA Production Plant  Link...

Toyo Tire Corporation is strengthening tire production capacity at its plant in Georgia, USA. This is part of their Mid-term 17 medium business plan started in 2017 which targetted strengthening sales in high value and growth products as well as increasing sales in North America.

North American pickup truck and SUV sales are strong, with Toyo having a competitive advantage in this segment. Increased demand and supply for these types of tire is expected to continue beyond 2020. Accordingly, Toyo is installing additional capacity for 1.2 million tires with production due to start January 2021.


Nokian Tires: Produces First Test Tire at New Dayton, Tennessee Factory  Link...

Nokian has produced its first test tire at the new production factility in Dayton, Tennessee. The production facility remains on schedule to begin producing tires for commercial use in early 2020.


Freudenberg & Co: Vibracoustic Opens New Material Development Center  Link...

Vibracoustic has opened a new material development center located in Weinheim, Germany. The location employs 25 material experts working on new prototype compound development in support of the engineering group. As well as standard elastomer developoments the location also has a dedictated micro cellular urethatne shot machine allowing prototyping and testing of microcellular foam material.


Tokai Group: Increasing Carbon Black Prices in North America  Link...

Tokai Carbon CB Ltd (TCCB) will increase the price of carbon black products by $0.06 per pound effective August 1st 2019, or as contracts allow. The EPA Consent Decree Surcharge will also increase from $0.03 to $0.4 per pound.

Effective January 1s 2020, TCCB is changing many of the standard pacing and premium charges.

New agreements conclulded in 2019 will use the above pricing as well as TCCB's actual corporate monthly average laid-in CBO cost as the feedstock reference price.


SI Group: Focused Sale of Industrial Resin Business to ASK Chemicals  Link...

SI Group is to sell the majority of its global industrial resin businesses and its Brazilian speciality business to ASK Chemicals. The sale includes SI Group's industrial resin products and associated manufacturing sites in Rio Claro, Brazil, Ranjangaon, India and Johahhesburg and Durban, South Africa.

SI Group will carve out related businesses at these four sites, including the manufacture of global rubber and adhesives and oilfield products.


Continental Rubber Group: Ground Breaking for Motorcycle Tire Plant in Thailand  Link...

Continental has broken ground on its new motorcycle tire plant in Thailand. The company plans to invest 26 million Euro with initial production for radial tires coming on stream in 2021. Production of bias-ply/cross-ply tires is planned for later.

The new plant is being built in the immediate vicinity of the pc tire factory which Continental opened in March of this year. Production from this plant is expected to serve demand from new markets.


Woodbridge Group: Investing $100 Million (CAD) for Innovation in Ontario, Canada  Link...

Woodbridge is investing $100 Million CAD for creating and promoting innovation in Ontario, Canada. The investment will permit Woodbridge to modernize two manufacturing sites in Ontario. The company will also establish a Center of Excellence, where it will invest and centralize its global research and development activities in advanced materials and product design of molded foam products. The intiative is being supported by the Canadian government.


Hutchinson S.A.: Joint Venture with Hiroshima Kasei  Link...

Hutchinson has created a joint venture (Hiroshima Kasei Hutchinson Sealing Japan) with Hiroshima Kasei, located in Fukuyma, Japan. The JV will focus on sales, development and production of automotive body seals for Japanese automotive manufacturers. This allows the combination of both companies' technology, enlarging their activities in Japan.


Trinseo SA: Opens New Hoek, Terneuzen Compounding Plant  Link...

Trinseo has opened a new compounding plant at its Hoek Site in Terneuzen, The Netherlands. The new site provides a boost to R&D, sustainability and employment in the region. The facility replaces the old compounding plant at Terneuzen Industrial Park.


Lanxess: Expands Masterbatch Range for Efficient Rubber Reinforcement  Link...

Lanxess is expanding its masterbatch range for efficient rubber reinforcement.

Rhenogran P91-40/Q has a silicone carrier combined with short-fiber aramid pulp and is suitable for high temperature, durable and wear resistant silicone items such as washers and seals.

Rhenogran P91-40/FKM has a flourinated rubber carrier combined with short-fiber aramid pulp and is suitable for high performance products such as those used in aviation.

Rhenogran CNT masterbatches are under development for special applications requiring resistance to high mechanical stress. Single wall CNT masterbatches have a concentration between 1 and 2% and multi-wall CNT's have a concentration of more than 10%. They can be diluted up to 20 times for final use and offer excelption thermal and electrical conductivity. Examples of use include anti-static properites.


Hexpol AB: Acquires Preferred Compounding  Link...

Hexpol has acquired Preferred Compounding from the Audax Group, a US based private equity firm. Preferred Compounding is a North American custom compounder serving the industrial, automotive, power and infrastructure markets in particular. Preferred Compounding had 2018 sales of approximately $240 million, having six facilities, five in the USA and one in Mexico.


Denso Corporation: Forming DENSO Wiper Systems, Inc.  Link...

DENSO Corporation is forming DENSO Wiper Systems, Inc by merging Nippon Wiper Blade Co, Ltd. and Asahi Manufacturing Co., Ltd. The change is driven due to the auto industry undergoing a once-in-a-century transformation with fast paced change due to innovations in CASE (connected, autonomous, shared and electrified) technologies. Competition to develop automated driving technologies has intensified and increased the importance of auxiliary systems.

Accordingly, DENSO Wiper Systems will build an integrated structure from design and production, to supply of wiper systems, thereby strengthening its capability to meet the needs of customers. The company will also step up efforts for the DENSO Group to create new added value in advanced fields.


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