Synthos to launch synthetic rubber production in Brazil
April 2, 2014
Chemicals group Synthos acquired a license and know-how for polybutadiene rubber production from Michelin and plans to open a plant in Brazil in 2017 that will enable the group to expand its annual production capacity to some 80,000 tons, Synthos said in a market filing.
"The acquisition of Michelin's license and know-how will lead to expansion of production capacity of the capital group in the future as far as polybutadiene rubber is concerned to a nominal volume of around 80,000 tons a year," the filing read.
The deal was signed on December 6, 2013, but its announcement was delayed to protect the company's interests, the filing showed.
The deal was signed for a period of 20 years.
At the same time, Synthos signed deals to supply Michelin's Brazilian plants with polybutadiene rubber for the duration of the acquired license validity, estimated at PLN 1.15 billion, as well as Pirelli's Brazilian plants for ten years, estimated at PLN 1.55 billion, the firm said in separate statements.
The above agreements are hinged on securing butadiene supplies from Brazil-based Braskem, based on a conditional deal estimated at up to PLN 4.5 billion, another filing showed. This deal, in turn, is hinged on Braskem securing long-term crude oil supplies, a condition that is yet to be fulfilled, Synthos said.