Styron to acquire S-SBR production rights in Schkopau from JSR

LONDON (ICIS)–Styron has acquired the 50% production capacity rights held by Japan’s JSR for one of its solution styrene butadiene rubber (S-SBR) trains operating in Schkopau, Germany, the US-headquartered plastics, rubber and latex producer said on Tuesday. 

Styron will have full capacity rights for S-SBR produced by the unit from 1 April this year, it added.

The deal value and capacity increase size were not disclosed, but Dow Chemical – Styron’s former parent company – noted in early 2009 that a new 60,000 tonne/year S-SBR plant starting up at the Schkopau site included a 50% capacity rights agreement with JSR.

Styron senior vice president Marco Levi said the deal offered an opportunity to develop its rubber business without investing in the construction of new capacity.

“This agreement allows us to further grow our rubber business in a very economical and timely manner. The investment builds on the success of the third S-SBR train in Schkopau which we brought on-line in 2012,” he said.

Styron currently operates three S-SBR plants at Schkopau. The material is used in the production of high-performance and green tyres with lower rolling resistance, making them more fuel efficient.

Ownership of the polystyrene (PS) and SBR production units at the site passed to Styron when the company was hived off from Dow Chemical to private equity firm Bain Capital in 2010.