RJA Industry News - May 2012

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Rubber Journal Asia Industry News

SI to ramp up capacity in China

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S chemicals maker, SI Group will construct an additional 30,000 tonnes/year facility for its phenolic resin manufacturing site at the Nanjing Chemical Industry Park in China. Valued at US$30 million, the facility will have a potential capacity of 70,000 tonnes/year. It is set to commence in 2013 and will produce phenolic resins in lump, pastille, liquid and powder forms to serve the rubber, abrasive, friction, impregnation and refractory markets. Prior to this expansion plan, the company opened its US$1.5 million rubber and industrial phenolic resin application laboratory at its Songjiang plant in Shanghai.

Asia Carbon reports healthy revenue

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hina-based Asia Carbon Industries’s sales increased by 65% to reach US$49.12 million in 2011, with about 86% of sales attributed to the increases in tonnage sold, whereas the remaining was attributed to the increase of the unit sales price. The average sales price of Asia Carbon’s products was US$988/ tonne during 2011, up by 11% from US$894/tonne in 2010. In terms of production and utilisation rates, the company produced 35,000 tonnes and 61,000 tonnes

and utilised 92% and 78% of total capacity in 2010 and 2011, respectively. It sold 49,683 tonnes of carbon black and naphthalene oil, an increase of 50% compared to 2010. The company registered a net income of US$7.31 million in 2011, up by 123% compared to the previous year’s US$3.27 million. This increase in net income resulted from new production capacity and improved gross margin rate.

for nearly one-third of global rubber demand in 2010, will record the strongest gains of any major market through 2015. The large amount of motorcycle and bicycle production in the country supports significant demand for rubber utilised in nonmotor vehicle tyres. The rubber markets in the US and Western Europe will rebound somewhat from the sales declines recorded from 2005-2010.

Rubber consumption high by 2015

China sets up NdBR project and hits high on carbon black

ccording to research firm Freedonia Group, global rubber consumption is forecast to rise 4.3% per year through 2015 to 30.5 million tonnes. The global automotive market will drive global demand for rubber utilised in tyres because replacement motor vehicle tyres represent the largest market for rubber. The significant increase in the number of vehicle use will boost the amount of rubber consumed worldwide. In addition, a pick-up in global manufacturing activity through 2015 will spur rubber demand in non-tyre applications. Asia Pacific region is the largest regional market for rubber, accounting for 60% of global demand in 2010 and will register the fastest growth in rubber consumption through 2015. The massive Chinese rubber market, which alone accounted

o support the development and production of neodymium-catalysed butadiene rubber (NdBR), China has initiated a four-year project to study the chemistry, engineering and practicality of a pilotscale reactor. The project involves the nation’s top research institutions and universities such as Xinjiang Science and Technology Agency, Karamay Petrochemical, the Chinese Academy of Sciences, Changchun Institute of the National Science and Technology, and Xinjiang University. Meanwhile, since 2006, China’s carbon black production has surpassed that of the US and has increased at an average rate of 10% annually since then, reaching 3.4 million tonnes in 2010. The country’s capacity is 5 million tonnes/year with average capacity utilisation of only 70% during 2010, according to an industry report from

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Chinese research firm CCM. With the passenger car sales in China rising by nearly 33% in 2010, domestic demand for tyres and therefore, also for carbon black, has been booming. However, the growth of China’s tyre manufacturing sector has been slightly hampered by the imposition of anti-dumping duties on passenger car tyres imported from China into the US from early 2010. Nevertheless, exports in 2011 are expected to double the 2010 level.

Freudenberg registers high sales

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amily-owned German firm Freudenberg Group reported aboveaverage, profitable growth in almost all sectors, with sales value reaching EUR6 billion in 2011, an increase of 9.6% from EUR5.48 billion in 2010. Profit amounted to EUR505 million, higher than the previous year’s EUR431 million. According to the group, much of its success had to do with its ability to cope with the substantial increases in the price of materials and compensate for weak economic conditions in the Mediterranean countries. To continue business growth, Freudenberg will invest on product innovations and plant expansions. To date, the company has set up new facilities in the US and Russia and about 26% of the company’s product innovations are less than four years old.

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