Synthomer focusing on nitrile rubber latex capacity

London – Synthomer plc is focusing on “capacity management and cost control” within its nitrile butadiene rubber latex operations, the group has announced.

“The challenging medical glove market dynamics which followed the unprecedented activity during the pandemic continue,” said Synthomer in a trading update 18 July.

In line with previous indications, the UK-based group said it did not expect low NBR latex production levels to abate before the end of 2023.

Synthomer will report half year results for the six months to 30 June on 7 Sept.

In March, Synthomer posted a 50% year-on-year decline in 2022 revenues, to £249 million, including an 85% decline in performance elastomers’ sales to £49 million.

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

Synthomer also reported “subdued levels of demand” across most of its end markets and geographies, while anticipating an improvement in market conditions in the second half of 2023.

But while noting "robust" underlying demand for medical gloves, Synthomer said it was keeping NBR production at low levels amid an “unprecedented period of destocking.”