TSRC closing rubber compounding plant in Vietnam

Taipei, Taiwan – Taiwanese synthetic rubber supplier TSRC has decided to cease all production activities at its compounding materials plant in Binh Duong, Vietnam by the end of 2024.

In a 6 Dec statement, TSRC said the decision followed “a series of market evaluations and business improvement actions” to enhance business within its subsidiary TSRC Vietnam.

Following the closure, the Taipei-based group will provide products and services from other existing compounding plants to its customers.

The move is estimated to result in an impairment loss of NT$240 million (€7 million), to be reflected in the group’s fourth quarter results.

TSRC established the Vietnam subsidiary in 2018 to supply its T-Blend elastomer products to key footwear customers.

The unit was specifically set up to support the group’s ‘advanced shoe materials’ (ASM) segment, which at the time TSRC saw as one of its growth pillars over medium term.

According to previous announcements, TSRC also supplies shoe rubber compounds to “global brands” from its facilities in in Gangshen, Taiwan and Shanghai, China.

Founded in 1973, TSRC produces synthetic rubber and styrenic block copolymer (SBC) to customers in tires, footwear, plastic modifications, adhesives, and other speciality applications.

According to its website, the group’s current annual output of SBR, BR, NBR, TPE compounding and other synthetic rubbers stands at 805 kilotonnes.

The group operates production facilities in China (Nantong in Jiangsu, Song-Jiang in Shanghai), Thailand, and India, as well as service centres in the US and Luxembourg.