News from Notch Consulting, Inc.

October 9, 2018

SRI doubles plant expansion in Brazil; launches plant in South Africa

Filed under: Tires — Tags: , — Notch @ 11:21 am

Sumitomo Rubber Industries Ltd. is doubling the scale of an ongoing expansion project at its tire plant in Fazenda Rio Grande, Brazil, to 1,000 truck tires a day to meet “steadily growing” demand for truck/bus tires in the country.

Meanwhile, Sumitomo Rubber South Africa (PTY) LTD (SRSA), manufacturer of Dunlop, Sumitomo, and Falken tire brands, officially launched its new, state-of-the-art truck and bus radial (TBR) factory in Ladysmith, Kwazulu-Natal on Tuesday, October 2, 2018.

Sumitomo Rubber Industries Ltd (SRI), has tire manufacturing plants in Japan, China, Indonesia, Thailand, Brazil, Turkey, USA, and South Africa.

Read the Brazil press release here.

Read the South Africa press release here.

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China’s JGST to build tire plant in Thailand

Filed under: Tires — Tags: — Notch @ 10:19 am

Jiangsu General Science Technology Co. Ltd., reacting to increasing international trade barriers, plans to build a passenger and truck/bus tire plant in Thailand’s Rayong Industrial Zone and is committing up to $300 million for the project. JGST first proposed building an overseas plant in April, in Cambodia, but has decided to change its location.

The plant is designed with capacities of 6 million passenger tires and 1 million truck/bus tires annually, the company said. Construction is slated to take 15 months, and the plant is expected to generate $36 million annual net profit on $320 million in revenue when on full stream upon the third year of its operation.

Among tire makers already manufacturing in Thailand are Bridgestone Corp., Michelin, Zhongce Rubber Co. Ltd. and Qingdao Linglong Tire Co. Ltd., JGST said.

Sourced article found here.

Synthetic rubber prices likely to remain volatile

Filed under: Rubber, Rubber Chemicals — Notch @ 10:04 am

Prices for synthetic rubber and petrochemical feedstocks have been “incredibly volatile” and are likely to remain so for a while, according to Bill Hyde, executive director-olefins and elastomers at IHS Markit, a speaker at the International Tire Exhibition & Conference in Akron Sept. 11-13. “Energy- and economy-related fundamentals in the synthetic rubber market are encouraging, but risks abound,” he said.

Meanwhile, natural rubber pricing is largely to remain soft because of oversupply and the need for small farmers to keep on earning a living, according to Hyde.

Spokespersons for various industry sectors generally agreed with Hyde, especially in his assertion that ethylene is the main driver of pricing in the petrochemical and SR world.

“Ethylene is the center of the petrochemical universe,” he said. “It has a lot of co-products, most importantly butadiene. Ninety percent of all the butadiene produced in the world is a co-product of ethylene.”

Read more here.

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