Styron Synthetic Rubber Plant, Germany

The global materials manufacturing company Styron began the expansion of its solution styrene butadiene rubber (SSBR) plant in Schkopau, Germany on 11 May 2011. The project will add a new SSBR production line to the existing facility.

SSBR is a synthetic rubber used manly for the production of high-performance tires. It gives the tires a low rolling resistance and better wet grip performance at high speeds. The tires thereby increase the fuel efficiency and reduce the carbon dioxide emissions. SSBR is also used for various industrial goods such as conveyor belts, flooring, footwear, belts and adhesives.

The expansion will increase the SSBR production of the Schkopau site by 50,000t. The additional capacity will enable the company to meet the increasing demand for high-quality rubber from customers across the globe.

Styron Deutschland employs about 500 people in Schkopau and Böhlen sites. The expansion project is estimated to cost $125m. It is expected to generate about 30 new jobs at the site.

Owners

As part of business restructuring, The Dow Chemical Company sold its Styron Division to Bain Capital Partners for $1.63bn in June 2010. The deal involved divestment of the polystyrene and rubber factories.

Styron became an independent, privately held company involved in the production of rubber, latex and plastics. It has full ownership of the production plant, including the production, assets and people. Dow Chemical, however, retains the ownership of Schkopau site and 7.5% stake in Styron.

In December 2010, Styron announced its plans to expand the SSBR production at the site. Dow will benefit from the expansion, through various long-term supplies, service and purchase agreements.

Plant construction and expansion

Dow established its first SSBR production plant in Schkopau in 2002. Construction of the second production line began in June 2007 and was started up in March 2009.

The second line has a capacity of 60,000t per year. About 50% of the production (30,000t) is owned by Japan Synthetic Rubber (JSR) Corporation under a capacity right agreement with Styron Europe.

Groundbreaking of the expansion project for the addition of third train was held in early May 2011. The new line is being built next to the two existing production lines. The construction is expected to be completed in the third quarter of 2012. The new line will be fully operational by the end of 2012. It will increase the production at the site to about 160,000t per year. It will produce all the existing oil-extended and clear rubber grades of Styron.

The Schkopau site was chosen for the expansion due to the ready availability of logistics support. The production from a single site will also speed up the project. Dow will provide the infrastructure and supply the additional utilities needed for the expansion.

Feedstock

The SSBR Schkopau plant will be supplied with styrene and butadiene feedstock from the nearby Böhlen site which is also operated by Styron. The Böhlen site supplies the plant with reliable and cost-advantageous raw material.

Process technology

SSBR is produced by the anionic batch polymerisation of butadiene and styrene. The process technology involves reaction of the monomers under strong electronegative groups. A batch synthetic rubber copolymer is produced by creating three-dimensional networks, also called polymer chains, in a single reactor.

SSBR is also produced in many varieties of vinyl and styrene contents.

Contractors

The majority of the construction work will be carried out by companies from in and around Schkopau, Germany.

Market growth

Demand for SSBR is expected to increase by the new European environmental legislation which mandates performance labelling of tires by November 2012. All the cars, buses and trucks sold in EU will be labelled with the tire fuel efficiency, wet grip level and a maximum rolling resistance.

The legislation aims to reduce the energy consumption by 20% by 2020. With other countries also expected to mandate high-performance tires in future, the prospects for growth in demand for SSBR are high.