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.