Synthomer elastomers segment hit by gloves market decline

London – Synthomer Plc.’s performance elastomers segment has been strongly impacted by a decline in demand for nitrile butadiene rubber (NBR) latex gloves.

Overall, group sales fell 50% in 2022 to £249 million, reflecting an 85% decline in performance elastomers’ sales to £49 million, the UK group's annual results show.

Synthomer linked the decline in NBR latex demand to “significantly reduced” demand due to “extreme medical gloves inventories” built up during the Covid-19 pandemic.

“Our year-to-date trading performance reflects the continuation of the challenging macroeconomic conditions in the final quarter of 2022,” said Synthomer's 28 March report.

The London-headquartered group also reported “subdued levels of demand” across most of its end markets and geographies.

However, Synthomer anticipated an improvement in market conditions in the second half of 2023, adding that underlying demand for medical gloves remained robust.

On the other hand, the group is keeping NBR production at low levels, as it does not expect “the unprecedented period of destocking” to abate before the yearend.

After ‘an exceptional 2021’ and a robust first half, overall performance in 2022 was “significantly affected by deteriorating macroeconomic conditions,” commentd CEO Michael Willome.

The conditions, Willome went on to explain, were in particular affected by “prolonged destocking” in nitrile latex in the second half.