LANXESS to expand global capacity of high-performance rubber Nd-BR

03-11-2010: LANXESS has decided to expand the global capacity of its high-performance rubber Nd-BR (Neodymium Butadiene rubber). LANXESS, who is one of the world’s leading synthetic rubber manufacturers, will invest about EUR 20 million to increase production by an additional 50,000 metric tons per annum at its sites in Dormagen/Germany, Orange/USA and Cabo/Brazil. The extra capacities will go on stream between the first quarter of 2011 and first quarter of 2012.

The additional capacity will serve the global demand for Nd-BR, which is expected to grow annually by close to ten percent in the coming years. Without this capacity expansion, there would be a worldwide product shortage for this type of material by 2014. The positive development of Nd-BR is being driven by the trend towards greater mobility – especially in Asia – as well as motorists, who are demanding higher environmental and safety standards in performance tires. The world’s leading tire manufacturers, who are supplied by LANXESS’ global rubber manufacturing network, are responding to this demand by expanding production in the BRIC markets.

In addition, the European Union approved in November 2009 a new regulation, which stipulates that by November 2012 new tires sold in Europe have to be labeled for fuel efficiency, wet grip and external rolling noise. The aim of the legislation is to reduce CO2 and noise emissions by promoting green tires that do not compromise on safety. In addition, the labels will provide more transparency to consumers and aid them in their purchase decisions. The tires are to be categorized in a system of classes, with the best performance being labeled “Class A” and the poorest “Class G”. Tire makers in Japan are voluntarily introducing tire labels from the beginning of 2010, while the USA is also evaluating similar labeling regulations.

"LANXESS welcomes the new tire labeling regulations, which are positive example of how environmental policies can benefit consumers and spur economic success,” said Axel C. Heitmann, Chairman of the Board of Management of LANXESS AG. “The initiative will also ultimately lead to more innovation within the chemical and tire industries.”