Wednesday, March 06, 2013

Lanxess brings innovation to South factory

The German group Lanxess, the largest global producer of high performance rubber, will invest € 80 million (about US $ 200 million) in its plant in Triunfo (RS). The specialty chemicals company performed studies and decided to convert the production of styrene butadiene rubber emulsion (E-SBR), used in the production of standard tire, styrene butadiene rubber solution (S-SBR), used in the production of "green tyres". This is the first major investment announced in Brazil in recent months by the chemical industry, which is experiencing a period of strong stagnation.
The value, Werner Breuers, Member of the Board of Directors, said that Brazil is part of a global strategy of Lanxess for this sector. "The country is considered strategic and are among the most important among the emerging, with predominant role in Latin America."
Boosted by good performance of automotive industries in Brazil, Lanxess decided to make this investment in the country. Since last November, the European Union requires labeling on tires with information on safety and environmental aspects of the product, similar to the energy label for appliances. This tag facilitates the comparison of tires in terms of grip in wet conditions, fuel efficiency and noise. In Brazil, the labelling will be required from 2016.
The company's plan is to reach a capacity of 110 thousand tons per year of high-performance rubber, known as S-SBR. It is expected that the factory already converted start trading at the end of 2014. This unit already produces rubber used in tyre pattern (E-SBR)-focused on manufacturing and truck tires-reform, which will have their production transferred to the Group's unit in Duque de Caxias (RJ).
It is expected that the national production of high performance rubber is absorbed within the internal market. The surplus will be exported to Asia, especially. The demand for rubber (and default) grows 10 percent a year.
Second Breuers, the demand for "green tire" grows in regions of Latin America and Asia, with the higher purchasing power of the middle class. Studies indicate that the use of this tyre lowers fuel consumption between 5% and 7%.
Created in 2004, Lanxess, with revenues of € 9 billion, produces rubber and high-tech plastics and specialty chemicals. The Brazil already represents 10% of the company's global revenue, according to Marcelo Lacerda, President of the group in Brazil. In 2005, the country accounted for 1% of worldwide sales, with revenues of € 161 million. In 2011, the company's revenues stood at € 907 million.
Between 2005 and 2011, Brazil received investment of $ 1 billion, according to L. In 2007, the multi country acquired the Petroflex, for about $ 530 million. The company has five factories in Brazil-as well as two units in triumph and Duque de Caxias, has a plant in Porto Feliz (São Paulo) and another Cabo de Santo Agostinho (PE). In 2010, the amount of R $ announced Lanxess 75 million in Porto Feliz, elected the polo to the advanced product development and new technologies in specialty chemical group that can meet the industries of Brazil and Latin America.
The movement of large multinationals from traditional markets such as Europe and the USA, to emerging countries is a global trend, said Breuers. "In the U.s., the chemical industry has resurfaced because of the ' shale ' gas [shale gas], considered a revolution for the industry with raw materials at competitive prices." The demand for chemical products, however, is growing in emerging countries such as Brazil and Asia.
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