A global boutique consultancy, we serve our clients in two ways: via client directed projects (TCG Consulting) and via various programs and studies (TCG Resources).

Catalysts and Processes for the Rubber & Elastomer Industries: Technology Advances and Commercial/Strategic Implications

JUST ANNOUNCED!
New TCGR Multi-Client to Assess the Competitive/Strategic Implications of 
Production Technology
Changes in the Rubbers and Elastomers Industries

View Proposal Here (PDF Format)

 Catalysts and Processes for the Rubber & Elastomer Industries: Technology Advances
and Commercial/Strategic Implications

There is substantial opportunity in market development, technological innovation and competitive advantage as a result of recent advances in in the rubber and elastomer industries (e.g., via process efficiency gains/cost reductions as well as products with new or enhanced performance profiles). The markets are growing at attractive rates and the margins on products can be elevated via new or advantaged properties. In its proposed study, TCGR will provide a comprehensive overview of developments in elastomers/rubbers by type and will assess the progress across the value-chains in their manufacture, including i) catalysts, ii) process technologies, iii) products & applications, and iv) on-purpose monomer technologies of interest for elastomers under use and/or in development. Focus will be placed on notable technology developers including: Arlanxeo, ExxonMobil, Dow Elastomers, Sibur, LyondellBasell, LG Chem, Sabic/SK Nexlene, TSRC, LCY Chemicals, Bridgestone, Versalis, Bayer and Covestro, etc. along with leaders in catalysts/activators such as Akzo Nobel, Grace, Lanxess/Chemtura, Nippon Alkyls, Solvay, Albemarle and FMC, among others.

As is the case in other/related polymer industries, elastomer producers are served by a network of catalyst and technology suppliers; the Figure below depicts the elastomer catalyst and technology market structure. The elastomer/rubber catalyst and technology markets, as noted earlier, are very competitive with a lot of M&A, joint venture and cooperative agreements established in the marketplace over the years.

Figure: Elastomer Technology Industry Structure

Key industry issues to be addressed include:

  • A relative shortage of butadiene, propylene and styrene, along with volatility of prices, especially for butadiene, are still very much influencing the rubber industry. However, a broad range of new non-conventional on-purpose technologies for monomers used in elastomer/rubber production, some of which are still in the developmental stage, are changing the technology landscape.
  • EP rubbers and EPDM are in high demand for non-tire applications due to their excellent properties driven by integrated catalyst and process development. Various catalyst technology generations, such as Ziegler Natta, metallocene (e.g. ExxonMobil, Mitsui Chemical) and post metallocene catalysts (e.g. Lanxess/Arlanxeo and Dow Elastomers) are used in combination with solution, gas phase and bulk processes to produce EP rubbers. Current post-metallocene catalysts are targeted at production of new types of EP elastomers with low to ultra-high Mooney, fast cure and high degrees of cure at very high yields (more efficiency).
  • Access to technology is always a vital feature for an industry and licensing options for newcomers may be restricted via significant barriers to entry.
  • Despite the strong and steady growth rates for rubber/elastomer products globally, the industry remains at overcapacity which shrinks margins. Lanxess recently packaged its synthetic rubber and high-performance elastomer businesses into a business segment called “Arlanxeo” and sold 50% of it into a JV with Saudi Aramco (also taking advantage of better access to raw materials).
  • Macro trends like the “circular economy” and overall sustainability in the rubbers/elastomers industries includes product recycling and up-cycling, development of new bio-derived materials, further enhancement of green tires, etc.
  • The largest end use for elastomers/rubbers – the automobile industry – has begun to shift substantially towards electric/hybrid models. One consequence will be heavier vehicles due to new long-life batteries; after decades of progressive light weighting, new challenges now impact the tire and the elastomeric materials’ industry.

With an outlook covering the next 5-10 years, TCGR will consider commercial and technological developments that will provide the report’s subscribers with expert information for current business operation and future business planning. By focusing on emerging technologies, TCGR will detail how changes occurring now and expected in the future will impact the elastomer and rubber industries of tomorrow. A key need/justification for this study, and one that TCGR is uniquely capable of delivering, is a comprehensive technological assessment of rubber/elastomer catalysts, processes and products so that developers and producers can maximize the value of their participation in the industry as it changes to reflect new drivers/factors shaping it. There are only a few industries where technology plays such an important role in the product’s physical and performance properties and differentiation is critical to success. This study will document the commercial opportunities and competitive threats as a result of technology change – it is a “must have” for future success in rubber/elastomer production.

* * * * *

As it does in each of its industrially-focused multi-client studies, TCGR will seek input from “charter” subscribers (i.e., those who sign-up by June 15, 2018) to help shape the report’s final scope/TofC by delineating areas of particular interest, as depicted in the preliminary TofC.

* * * * *

Additional information, including the complete study proposal, the preliminary Table of Contents and the Order Form, can be downloaded via the link below.
For additional study details or to subscribe, please contact John J. Murphy at +1.215.628.4447 or John.J.Murphy@catalystgrp.com.

 The Catalyst Group Resources (TCGR), a member of The Catalyst Group, is dedicated to monitoring and analyzing technical and commercial developments in catalysis as they apply to the global refining, petrochemical, fine/specialty chemical, pharmaceutical, polymer/elastomer and environmental industries.

Download PDF