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Bridgestone sells synthetic rubber business to LCY Chem

June 21/2021

MOSCOW (MRC) -- Japanese tyre major Bridgestone plans to sell its China-based synthetic rubber business, Bridgestone (Huizhou) Synthetic Rubber Co., Ltd. (BSRC), to LCY Chemical Corp., said the company.

Bridgestone Corp. is selling its synthetic rubber production business in China to Taipei-based materials and chemicals supplier LCY Corp., in line with the group's mid-term (2021-2023) business plan to rebuild earning power.

As part of the deal, the Japanese manufacturer will sell all shares of Bridgestone (Huizhou) Synthetic Rubber Co. Ltd (BSRC) to LCY Chemical Corp. by 14 Dec, said a 15 June statement.

BSRC has one synthetic rubber production plant in Huizhou, Guangdong Province and posted sales of Yuan399 million (EUR51 million) in 2020. 

Operational since late 2008, the plant manufactures 50 kilotonnes per annum of styrene butadiene rubber, and supplies to Bridgestone's tire production factories in China.

Through the sale, Bridgestone expects BSRC to make new synergy with LCY and maximise growth, given the Taiwanese companys excellent expertise for materials and chemicals business."

Bridgestone said the move is part of its mid-term business plan which will see the Tokyo-based group enhancing the earning power of its core tire business through cost-cutting and restructuring measures.

As per MRC, American Bridgestone Firestone, a subsidiary of Japan's Bridgestone Corporation, halted production at its Styrene Butadiene Rubber (SBR) plant in Lake Charles, Louisiana, USA on February 15 due to cold weather in the region. The company confirmed that the 134,000 tonnes BSK per year plant is out of service due to problems associated with extreme weather conditions in the US Gulf of Mexico. Although electricity was restored to the plant, cold weather and power outages in the area resulted in the cutoff of water and other circulation needed to keep the plant running.

Styrene-butadiene rubber has an excellent combination of functional properties in a variety of applications. This rubber is considered the best general purpose rubber due to its excellent properties of high abrasion resistance and high filling percentage.

Styrene is the main raw material for the production of polystyrene (PS).

According to ICIS-MRC Price report, last week's prices of Russian EPS remained at the level as of early June. Prices of SIBUR-Khimprom's spot EPS quantities were at Rb167,000-175,000/tonne CPT Moscow, including VAT. Plastik, Uzlovaya shipped material at Rb178,000-180,000/tonne CPT Moscow, including VAT, depending on the grade.

Bridgestone Firestone is an American subsidiary of the Japanese Bridgestone Corporation. Firestone Tire and Rubber and Bridgestone Tire Company Ltd. USA were merged in 1990 to become Bridgestone Firestone North American Holdings Ltd.


mrcplast.com
Author:Anna Larionova
Tags:PS, EPS, natural rubber, synthetic rubbers, Bridgestone (Huizhou) Synthetic Rubber, Russia, USA.
Category:General News
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