GESMAR, La.—Fresh off completing the sale of its SBR and NBR business, Lion Copolymer Holdings L.L.C. is exploring a possible expansion at its EPDM facility in Gesmar and looking to strengthen its position in key raw materials.
The firm just completed a study to add an additional 60,000 to 80,000 metric tons per year to compliment Gesmar's four existing EPDM polymerization units. If the firm pursues the expansion, it would raise the capacity to more than 200,000 metric tons per year, utilizing existing infrastructure.
The company said it has expanded its EPDM capacity by 35,000 metric tons per year since acquiring the site in 2007.
Lion Copolymer is in the process of trying to strengthen its position in certain raw material markets through co-investing in new ethane cracker capacities.
“U.S. Gulf Coast raw material cost advantages and the proven performance of Royalene EPDM in the global marketplace are key drivers in the decision to review expansion options,” said Lion Copolymer President Jesse Zeringue. “Our decision to divest the SBR business will allow us to focus our efforts on growing ht EPDM business and explore new strategic opportunities.”
Lion Copolymer said it has completed the sale of its SBR and NBR business to East West Copolymer L.L.C. The firms did not disclose financial terms.
East West Copolymer has been operating the Baton Rouge, La. plant since February under a temporary operating agreement.