Synthetic rubber joint venture Dynasol has signed an agreement with China's Shanxi Northern Xing'an Chemical Industry (Xing'an) to build a 100,000 tonne/year rubber solution plant in northeastern China, it said on Tuesday.
Both groups would have an equal share in a new company created by the agreement, which was set up to produce and market rubber in China, where demand is currently growing at 7% a year, as well as other countries in the region.
The new rubber facility's location at Xing'an's chemical complex in Liaoning province would result in a "seamless integration of its main raw materials, styrene and butadiene, ensuring a reliable, consistent supply of both products", Dynasol said.
Dynasol is a joint venture between Mexico-based elastomers producer Kuo Group and Spanish energy group Repsol.
The company, which already has two world-scale plants in Spain and North America, would supply the production technology for the new plant.
The new facility would boost Dynasol's present capacity by 50%, the company said.
Rubber solution has numerous applications including modified asphalts, modified plastics for the automotive industry, cables, adhesives and medical care.
Dynasol operates in more than 70 countries and provides global distribution of SSBR, SBS, SEBS, SB multi-armed under the Calprene and Solprene brands.