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Lanxess and Saudi Aramco Set Up Joint Venture for the Production of Synthetic Rubber

Germany: LANXESS Aktiengesellschaft, a Germany based global manufacturer of specialty chemicals and performance polymers, has entered into an agreement with a subsidiary of Saudi Aramco, that is, Aramco Overseas Company for the production of synthetic rubber in Germany. The companies have signed a 50:50 joint venture agreement for the production, sales and distribution of synthetic rubber. The new company has been named as Arlanxeo and has obtained all the necessary approvals from antitrust authorities. Arlanxeo, which is valued at more than USD3 billion, would cater to the growing demand for synthetic rubber for use in tyres, manufacturing of automobile parts and other applications.

TechSci Research depicts that the joint venture agreement between LANXESS Aktiengesellschaft and Saudi Aramco would emerge as a major independent player in the synthetic rubber market and cater to the growing demand of synthetic rubber across the globe, including China, which is the largest market for synthetic rubber in the world.

According to recently published TechSci Research report China Synthetic Rubber Market Forecast and Opportunities, 2020, the synthetic rubber market in China is projected to cross US$ 12 billion by 2020. Rising tyre demand coupled with steady growth in Chinese footwear industry to drive synthetic rubber consumption in China through 2020.

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