Synthomer earnings jump 110% amid ‘exceptional demand’ for NBR latex

London – Synthomer plc has seen a 110% year-on-year jump in earnings to £522 million (€621 million) in 2021, greatly boosted by its performance elastomers business unit.

Group sales rose 47% to £2.3 billion during the period, helped by ‘exceptional Covid demand' in the nitrile butadiene rubber latex market, said Synthomer in a 3 March statement.

Performance elastomers’ earnings rose 137% to £320 million, with “record performance” from NBR latex unit and improving styrene butadiene rubber (SBR) latex market.

Synthomer said that its NBR latex volumes reached record level in the first half of the year, whihc was followed by "a softer second half."

The company expects to complete its 60-kilotonne-per-annum (ktpa) expansion in Malaysia in the first quarter of 2022.

In addition, the construction of the new 200ktpa NBR latex plant in Asia is set to be completed by 2024.

In terms of outlook, the London group said NBR latex margins have normalised to pre-Covid levels, and the company does not expect any “pandemic premium” this year.

Year-to-date, Synthomer added, NBR latex demand remains subdued due to “high inventory levels of medical gloves and reduced demand.”

However, the group expects trading conditions in NBR latex to normalise by the end of the first half of the year with market growth returning to 2019 levels in the second half.

With regards to the ongoing conflict in eastern Europe, the group said it had “very limited exposure” to Russia and Ukraine, with both countries accounting for less than 1% of group revenue.

“We continue to carefully monitor the situation and its potential implications on our business,” it said.