07 December 2013 00:14 [Source: ICIS news]
HOUSTON (ICIS)--Lion Copolymer will temporarily close its styrene-butadiene-rubber (SBR) plant in Baton Rouge, Louisiana, by 3 February because of economic conditions, the US producer said in a news release provided to ICIS on Friday.
Lion has yet to determine how long the closure will last.
"Declining market conditions for domestically produced replacement tyres and conveyor belting, global over-capacity of SBR supply and volatility in key raw materials have resulted in unfavourable SBR market conditions in the recent years," said Jesse Zeringue, president of Lion Copolymer.
"As a result, Lion's SBR business has not generated sufficient returns necessary to support the continued re-investment required to adequately sustain the SBR business," Zeringue added.
The SBR plant has a capacity of 130,000 tonnes/year, according to a source at the company.
The closure will tighten domestic supply, which could help balance weak demand, market participants said.
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