Chinese group unveils 120ktpa synthetic rubber project to support tire industry

Jiaxing, China – Chinese chemicals major Zhejiang Jiahua Energy Chemical Co. has announced plans to build a new synthetic rubber production facility in China to support growing demand for ‘new energy tires’.

In a 10 April stock exchange announcement, the group said it was aiming to invest up to Yuan1.25 billion (€151 million) in a high-performance synthetic rubber project.

The total planned capacity of the facility is 240 kilotonnes per annum (ktpa), with the initial phase set to manufacture 120ktpa of solution styrene butadiene rubber (SSBR).

The investment in the second phase will be determined based on the performance of the initial phase and future market conditions, the group said.

Set for production in 2027, phase 1 will include two SSBR production lines, each with a 60ktpa capacity.

To be located at the group’s existing complex in Jiaxing, eastern China, the unit will include supporting facilities such as post-treatment workshops, waste treatment systems, storage tanks, chemical warehouses and control rooms.

The group said the decision to build the new plant was in response to increased demand for “specialised tires”, particularly for the EV market, which require low rolling resistance, low noise, high wear resistance and strong grip.

The group expects the project to generate an estimated annual revenue of Yuan1.78 billion.