Lanxess is planning to invest €30m by 2015 to increase productivity and energy efficiency at its rubber plant in Port Jerome, France.
The 140,000mtpa plant produces neodymium-polybutadiene rubber (Nd-PBR) and solution styrene-butadiene rubber (SSBR).
According to the company, the EU labelling requirement for tires which enters into force in November 2012 is expected to increase rubber demand in Europe.
Axel Heitmann, Lanxess board of management chairman, said the company's high-performance rubber will enable it to meet the new legal requirements and satisfy the customer demands that are expected to arise from them.
"As the world's largest partner to the tire industry, we have reacted promptly to this trend by making the corresponding strategic investments decisions and expanding our capacities," Heitmann added.
Global production of tires is forecast to reach two billion by 2015, a 25% increase on the current 1.6 billion.
The company is also planning to build a €200m new plant for Nd-PBR rubber in Singapore, which is slated to start production in 2015.
Nd-PBR is used in the tread and sidewalls of green tires, while SSBR is used primarily in the tread of green tires.