Synthos to stop ESBR production at Czech Republic site

OSWIECIM, Poland—Polish chemicals firm Synthos S.A. will permanently cease production of emulsion SBR (ESBR) at its plant in Kralupy, Czech Republic, due to what it calls an "unsustainable market environment" for ESBR because of unpredictable costs in Europe.

The Oswiecim-based synthetic rubber producer said in a March 2 news release that the move permanently will reduce the firm's annual ESBR capacity from 430,000 to 320,000 metric tons. It said the production of the SR material will stop in the second quarter of this year.

Synthos said its decision to halt ESBR production in Kralupy does not affect its "commitment to the production and development of SSBR, BR, ESBR, NBR and HSR at our manufacturing sites in Poland and Germany, and to the production of butadiene rubber in Kralupy."

"After careful consideration, particularly in light of expert forecasts on the cost situation of the chemical industry in Europe, we will not be able to continue operating our ESBR plant in (Kralupy) in the Czech Republic," Matteo Marchisio, Synthos business unit director for synthetic rubber, said in a statement.

"Such a decision is not made easily, because without the employees of the ESBR plant in Kralupy we would not be the company we are today. That is why we will do everything possible to ensure that as many employees as possible can find jobs in other departments at the Kralupy plant."

Synthos already had announced last September that it would no longer operate its ESBR production at full capacity because of the unsustainable utility cost increases it said were a direct result "of the geopolitical situation and the Russian invasion of Ukraine."

The firm said at the time that it would cut ESBR production by 30 percent indefinitely, the equivalent of about 100,000 tons a year. Besides Kralupy, Synthos makes ESBR at all three of its production sites in Oswiecim, Poland, along with sites in Vltavou, Czech Republic, and Schkopau, Germany.

Despite the reduction, Synthos said it remains the largest ESBR producer in Europe and "will continue to carefully monitor the development of utility and feedstock costs in Europe and the related competitiveness in the global market environment."

The Synthos ESBR production was part of an antidumping probe by the U.S. International Trade Commission into imports of the material from the Czech Republic and Russia. The ITC ruled in December that the U.S. ESBR market was not harmed by the imports.

ESBR is used primarily in tire applications as well as in conveyor belts, shoe soles, hose, roller coverings and flooring.