LONDON—Synthomer P.L.C. is focusing on "capacity management and cost control" within its nitrile butadiene rubber latex operations.
"The challenging medical glove market dynamics which followed the unprecedented activity during the pandemic continue," said Synthomer in a trading update July 18.
In line with previous indications, the United Kingdom-based group said it did not expect low NBR latex production levels to abate before the end of 2023.
Synthomer will report half year results for the six months to June 30 on Sept. 7.
In March, Synthomer posted a 50-percent year-on-year decline in 2022 revenues, to $306 million (£249 million), including an 85-percent decline in performance elastomers' sales to about $60 million.
The London-headquartered group linked the "significantly reduced" demand in NBR latex demand to "extreme medical gloves inventories" built up during the COVID-19 pandemic. The company also reported "subdued levels of demand" across most of its end markets and geographies, while anticipating an improvement in market conditions in the second half of 2023.
While noting "robust" underlying demand for medical gloves, Synthomer said it was keeping NBR production at low levels amid an "unprecedented period of destocking."
