US Lion Copolymer to close SBR plant in Baton Rouge by 3 Feb

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.

Lion's ethylene propylene diene monomer (EPDM) plant in Geismar, Louisiana, will be unaffected by the SBR closure, the news release said.

By Tracy Dang