Polybutadiene Elastomers

IHS CHEMICAL
Polybutadiene Elastomers
Chemical Economics Handbook
December 2015 ihs.com/chemical
Viola Teske
Bill Hyde
IHS Chemical Economics Handbook | Polybutadiene Elastomers
Contents
Summary 5
Introduction 8
Manufacturing processes 10
Catalyst systems 10
Solution polymerization 11
Oil-extended polymers 11
Processing and compounding 11
End uses 12
Tires and tire products 12
Impact modifiers 12
Polystyrene 12
ABS 12
Industrial products 13
Supply and demand by region 14
World 14
Capacity 14
Salient statistics 15
Prices 17
Trade 18
North America 20
Overview 20
Capacity 20
Trade 22
United States 23
Producing companies 23
Trade 25
Canada 25
Trade 26
Mexico 26
Trade 27
South America 27
Trade 29
Western Europe 30
Trade 32
Central Europe 33
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© 2015 IHS 2 December 2015

Trade 34
CIS and Baltic States 35
Trade 36
Middle East 37
Trade 38
Africa 39
Trade 40
Indian Subcontinent 41
Trade 42
Northeast Asia 43
Overview 43
Capacity 43
Trade 44
China 45
Salient Statistics 47
Trade 48
Japan 48
Trade 49
South Korea 50
Trade 51
Taiwan 52
Trade 53
Southeast Asia 54
Trade 56
Appendix—Other polybutadiene elastomers and resins 58
Emulsion-polymerized polybutadiene 58
Description 58
End uses 58
Emulsion-polymerized polybutadiene latex 58
Vinyl polybutadiene 59
Solid syndiotactic 1,2-polybutadiene 59
Liquid 1,2-polybutadiene 59
Description 59

End uses 60
Liquid polybutadiene—Hydroxyl and carboxyl terminated 60
Description 60
End uses 61
Liquid 1,4-polybutadiene 61
Trans-polybutadiene 61
Bibliography 62

Summary
The following table presents the global supply and demand overview for polybutadiene elastomers (PBR) in all regions and
countries individually discussed in this report.
World supply/demand for polybutadiene elastomers

(thousands of metric tons)
Average annual
consumption
Average annual growth rate,
nameplate capacitya Production Imports Exports Consumption 2015–20
2014 2015 2020 2015 2015 2015 2014 2015 2020 (percent)
North America
United States 655 655 630 490 65 200 366 355 405 2.7
Canada 0 0 0 0 41 0 40 41 42 0.5
Mexico 20 20 20 0 28 0 27 28 33 3.6
Total North America 675 675 650 490 134 200 433 424 480 2.5
South America 106 106 106 86 90 15 160 161 178 2.0
Western Europe 451 451 451 393 185 135 442 443 468 1.1
Central Europe 80 80 135 63 131 25 127 168 183 1.7
CIS and Baltic States 475 475 475 309 7 200 117 116 123 1.2
Middle East 25 25 100 18 40 0 57 58 66 2.7
Africa 47 47 47 40 5 7 37 38 40 1.3
Indian Subcontinent 105 105 205 85 59 0 127 144 186 5.4
Northeast Asia
China 1,665 1,728 2,033 824 191 18 982 996 1,315 5.7
Japan 357 357 357 300 32 138 213 194 200 0.6
South Korea 522 522 522 444 19 240 187 223 261 3.2
Taiwan 135 135 135 90 38 78 44 50 55 1.8
Total Northeast Asia 2,679 2,742 3,047 1,658 280 474 1,426 1,463 1,832 4.6
Southeast Asia 116 232 412 117 167 40 202 245 332 6.3
Total 4,759 4,938 5,628 3,259 1,096 1,096 3,129 3,259 3,890 3.6
a. Figures for 2020 can include hypothetical capacities (potential expansions or closures).
Source: IHS Chemical estimates. © 2015 IHS
As of 2015, the average annual nameplate capacity for polybutadiene elastomers amounts to more than 4.9 million metric
tons globally which represents an increase of about 22% from a volume of about 4.0 million metric tons in 2012. Since
2010, the global capacity base has on average expanded at a rate of about 7.3% annually, or almost 1.5 million metric tons
in total. This was mainly due to the comparably large amount of new capacity brought onstream in China, where more
than one million metric tons were added, as well as by the expansion of existing plants and the start-up of new capacities
in South Korea, Singapore, Malaysia, and the Czech Republic.
On a global basis, the average size of a polybutadiene elastomers plant has not changed much in the last five years, still
amounting to about 70–80 thousand metric tons. While there are a number of older plants in the United States and South
Korea that are much bigger than the global average, the typical size of newly constructed plants is on the order of 50–150
thousand metric tons. As of 2015, the Kumho Petrochemical plant at Yeosu in South Korea, which has a total capacity of
342 thousand metric tons annually, remains the world’s largest polybutadiene elastomers production plant to date.
Goodyear’s 250 thousand metric tons unit at Beaumont, Texas ranks second.
In the forecast period to 2020, the global capacity base for polybutadiene elastomers is projected to increase further, but
not as much as seen in recent years; average growth rates are projected to be about 2.7% annually. The majority of new
capacity additions will continue to be added in Asia (China, India, and Indonesia) and the Middle East (Saudi Arabia).
While the capacities starting up in China and India are intended to supply the domestic market, with the long term goal to
become more self-sufficient and less dependent on imports, the output from new production plants brought onstream in
Singapore (2015) and Saudi Arabia (2018) is mainly destined for the export market. This will ultimately result in changes

to global trade flows and will likely reduce the potential for exports out of traditional markets such as the United States,
Western Europe, and South Korea.
As can be seen in the charts below, Northeast Asia remains by far the largest producing region in the world and accounts
for about 55% of the total capacity in 2015, followed with some distance by North America (the United States) and the CIS
and Baltic States (Russia), at 14% and 10% respectively. By the end of the forecast period in 2020, smaller markets like the
Middle East, Southeast Asia, and the Indian Subcontinent will see some increase in their respective market shares, while
the three largest producing regions combined will account for a smaller share of 74%, versus 79% in 2015.

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Based on 2015 estimates, global consumption of polybutadiene elastomers amounts to almost 3.3 million metric tons
which is only about 139 thousand metric tons (4.4%) higher than in 2012. Since 2010, domestic demand has increased by
about 502 thousand metric tons, reflecting an average annual growth rate of about 3.4%. This is not even half of the
percentage growth registered for the nameplate capacities in the same time period, and shows that the gap between
supply (capacity) and actual demand has widened significantly, from 711 thousand metric tons in 2010 to almost 1.7
million metric tons in 2015. Most of this overbuild is due to the large amount of new capacity brought onstream in China
in the last couple of years. At present, almost one million metric tons (31%) of the global demand can be attributed to the
Chinese market alone, which has exhibited a comparably small average annual growth of only 2.8% since 2010; translating
into a total increase of about 129 thousand metric tons. At the same time, exceptionally large demand growth was
registered for Central Europe (22.1%), Africa (11.8%), the Indian Subcontinent (11.2%), and Southeast Asia (13.2%), with
the combined increase adding up to a volume of almost 300 thousand metric tons. In contrast, slightly decreased
consumption was seen in most of the mature markets, namely the United States (-0.5%), Western Europe (-1.0%), and
Japan (-0.9%). Overall, the major consuming regions in 2015 are China (31%), Western Europe (14%), and the United
States (13%).
Looking ahead to 2020, it is not surprising that the highest average annual growth rates are projected to be seen in Asia,
especially Southeast Asia (6.3%), China (5.7%), the Indian Subcontinent (5.4%), and South Korea (3.2%). Limited but
positive demand growth is expected to be seen in some of the developed regions such as the CIS and Baltic States (1.2%),
Western Europe (1.1%), Japan (0.6%), and Canada (0.5%). Some key findings and future implications for the polybutadiene
elastomers market include the following
• Based on total figures, the current world market is more than amply supplied.
• There is continuing system competition, with respect to new high performance materials and compound developments
(e.g., emulsion and solution SBR, butyl and halobutyl rubber), depending on the different types of tires and various tire
parts.

• The European tire-labeling legislation, which was implemented in 2012, continues to impact the consumption of
polybutadiene rubber as well as the implementation of tire-labeling legislations in other countries such as China, India,
and Russia.
• The rising prosperity in developing countries is leading to higher mobility, which ultimately increases the production of
tires and therefore the consumption of rubber in general.
• There is a growing need for and importance of neodymium-catalyzed polybutadiene rubber for the manufacturing of
premium tires (“green tires”), which are characterized by better energy efficiency, increased safety, and higher
durability.
Overall, tires and tire products remain the most important end use for polybutadiene elastomers and are estimated to
account, on average, for about 75% of total consumption in 2015, with regional shares ranging between about 70% and
85%. Also on average, about 15% of the global supply is used as impact modifiers in plastic manufacturing, while the
remaining 10% is consumed in the production of automotive goods and industrial products. This is not likely to change
much in the future as the tire industry, especially in developing regions, will continue to be the main driver behind the
growing demand for polybutadiene elastomers.

Introduction
Polybutadiene elastomers, usually abbreviated as BR or PBR, are the second-largest-volume synthetic rubber produced,
behind styrene-butadiene elastomers (SBR). Vulcanized PBR exhibits high resilience (the ability to recover size and shape
after stress), abrasion resistance, and resistance to cut growth (growth in size of an initial cut in the cured rubber), making
it an ideal elastomer for the manufacture of tires, PBR’s largest end use market. Impact modifiers for ABS and high-impact
polystyrene is the next-largest market. PBR is incorporated with other materials to make various automotive parts (hoses
and belts), industrial products (conveyor belts), and a few consumer products (golf ball centers).
Polybutadiene elastomers can be produced in many forms by many different manufacturing processes. This report focuses
on the commercial cis-polybutadiene elastomers that are produced by solution polymerization. Information on and
descriptions of other polybutadiene elastomers and resins such as emulsion-polymerized polybutadiene, vinyl
polybutadiene, hydroxyl- and carboxyl-terminated polybutadiene, and trans-polybutadiene are included in the Appendix
section at the end of this report.
The polymerization of 1,3-butadiene can yield several isomeric polymers. The configurations of polybutadiene are cis-,
trans- and vinyl. Either or both of the double bonds in butadiene can be involved in the polymerization, and the polymer
may have a variety of configurations. Four of these configurations are stereoregular, shown below.
H H H H
A. 1,4-polymers C C C C
H H
H H H
H H H H H C C H C
C C H H H H H H
H H H C C C C C C C C
H H H
C C C C C C C H H
C C H
C C
H H H H H H H H H
H H
n n
cis-1,4-polybutadiene trans-1,4-polybutadiene
H H
B. 1,2-polymers C C (also referred to as vinyl polybutadienes)
H
CH
HCH
HCH
H CH H H
H H H H H
H H H C C C
C C C C C C
C C C H H H
H H H H
CH CH CH CH CH
HCH HCH HCH HCH HCH

n n
isotactic 1,2-polybutadiene syndiotactic 1,2-polybutadiene
Atactic or nonstereoregular vinyl polybutadiene, where isotactic and syndiotactic structures alternate randomly, can also
be formed.
The predominant isomer and relative proportion of cis-1,4; trans-1,4; and vinyl-1,2 isomers in polybutadiene elastomers
depend on the polymerization conditions and the types of catalyst used in their manufacture. The most commercially
important of these polymers are those having 92% or more of the cis-1,4 configuration. Most of the main processes yield a
high-cis-1,4 product. Another significant process category (e.g., the Bridgestone/Firestone process with a lithium catalyst)
yields a polymer of mixed structure, typically containing 34–40% cis-1,4; 52% trans-1,4; and 10–12% 1,2-butadiene (vinyl

butadiene). A cis-1,4 level in this range is normally described by the industry as low cis. These low-cis-1,4 grades are
characterized by their purity, absence of color, and narrow molecular weight distribution.
Polybutadiene rubber in the cured state exhibits high elasticity and resilience with resultant excellent low heat buildup,
abrasion resistance, and low-temperature flexibility, plus resistance to flex cracking and cut growth. PBR can be loaded
more heavily with carbon black or precipitated silica and oil than natural rubber. These properties make polybutadiene an
ideal polymer for the manufacture of automobile tires. Tires and tire products have been PBR’s largest market in terms of
consumption. Polybutadiene has poor oil resistance (good for oil addition), poor wet traction, and poor tear resistance, as
well as low resistance to heat and ozone. It is also difficult to process, but this weakness as well as other less-attractive
characteristics can be nullified when it is blended with other polymers such as SBR and natural rubber.
Although polybutadiene polymers have been prepared and studied since the early 1900s, commercial interest began with
the development of stereospecific polymerization systems in the mid-1950s. Phillips Petroleum produced semi-
commercial quantities of polybutadiene in 1958. Commercial production began in 1960 at the company’s rubber plant at
Borger, Texas. Other companies soon followed with their own processes and catalyst systems. The processes were licensed,
expanding the number of producers. Polybutadiene rapidly became a major synthetic elastomer. Based on global
consumption data, PBR currently ranks second behind SBR.
Polybutadiene can also be produced by emulsion polymerization; however, early development efforts resulted in relatively
poorly performing products. In 1963, Texas-U.S. Chemical introduced emulsion-polymerized PBR, which became the first
commercially acceptable emulsion-polymerized rubber. The structure of the polymer is a random configuration of cis-,
trans-, and vinyl components. Additional information on emulsion polybutadiene is included in the Appendix section at
the end of this report.

Manufacturing processes
Polybutadiene rubber (PBR) is produced by the polymerization of butadiene monomer, using either solution or emulsion
polymerization processes. Since most commercial production employs solution polymerization while production via the
emulsion process is relatively small, the remainder of this discussion of manufacturing processes focuses on the solution
process.
In the commercial production of polybutadiene elastomers, the isomer composition of the final product depends on
several factors, the most important of which are the catalyst system and the reaction medium (solution or emulsion
polymerization). Several catalyst systems are used in the production of polybutadiene elastomers and yield varying
percentages of the cis-1,4, trans-1,4, and vinyl 1,2 microstructures.
Catalyst systems
Stereospecific catalysts of the Ziegler-Natta type are used extensively in the manufacture of solution-polymerized cis-1,4-
polybutadiene rubber. They are based on a transition metal halide in combination with an organometallic cocatalyst. The
other important major catalyst systems of commercial significance are based on titanium iodide, alkyl aluminum halide,
n-butyllithium, and neodymium catalysts. Today, neodymium catalysts for PBR production are extensively used for their
attributes in the “green tire” revolution.
The approximate cis-1,4 content of polybutadiene that can reportedly be produced with these catalyst systems and with
several other extensively used catalysts is presented in the following table.
cis-1,4 Content of polybutadiene elastomers produced by different catalyst systems

cis-1,4 Content
Catalyst system Developed by (percent)
Neodymium-based compound Bayer (now LANXESS), Polimeri Europa (now Versalis) and firms in 97-99
China
Dialkyl aluminum chloride (R2AlCl), cobaltous chloride (CoCl2) Prof. Karl Ziegler, Prof. Giulio Natta, Montedison SpA and The BF- 97-98
Goodrich Company
Alkyl aluminum halide, organic cobalt compound Chemische Werke Hüls AG 96-98
Trialkyl aluminum (AlR3), boron trifluoride etherate (BF3OR3) Bridgestone Corporation and JSR Corporation 95-98
Nickel salt of organic acid Goodyear 94-96
Trialkyl aluminum (AlR3), aluminum chloride (AlCl3), cobaltous Royal Dutch/Shell plc 94-95
chloride (CoCl2)
Trialkyl aluminum (AlR3), titanium tetraiodide (TiI4) Phillips Petroleum Company 92-95
Organo-magnesium compound (R2MgRMgX), titanium tetra- Texas-U.S. Chemical Company 92-94
halide (TiX4)
Butyllithium (C4H9Li) Firestone (belongs to Bridgestone) 34-60
Source: IHS Chemical estimates. © 2015
IHS
The first systems used titanium as a catalyst, which was developed in 1954. In more recent years, the use of titanium
systems has declined because those systems work best in benzene and toluene; two environmentally undesirable
solvents. As a consequence, there has been a move toward lanthanide catalysts, especially to neodymium. The neodymium
catalyst consists of soluble neodymium salts, like carboxylates, aluminum alkyls, and chlorides. Neodymium-based PBR
provides high abrasion resistance and rebound resilience, while reducing heat buildup under the dynamic stresses of a tire
tread. As branching increases in PBR, resistance to flex fatigue cracking is reduced. An increasing number of long-chain
branches will lower the elastic properties of PBR.
The characteristics of PBR can be varied quite significantly by the catalyst used in the production process. The table below
shows the possible impact on a number of different PBR characteristics for selected catalysts.

Impact of different catalysts on polybutadiene characteristics

Characteristics Neodymium (Nd) Cobalt (Co) Nickel (Ni) Titanium (Ti) Lithium (Li)
cis-1,4 Content (percent) 95-99 95-98 95 92-94 20-40
Glass transition temperature (°C) –109 –107 –105 –105 –93
Average molecular weight 455 360 580 410 290
Molecular weight distribution Medium Medium Broad Medium Narrow
Branching Very low Medium High Low Very low
Capacity for filler Medium/high (depending High Medium High Very high
on branching)
Mixing of compounds Medium to good Good Very good Medium Poor
Time for mixing
Extrudability Medium Good Very good Medium Very good
Green strength Good Poor/medium Poor Poor/medium Poor
Sources: (A) Manual for the Rubber Industry, 2d ed., Bayer AG, July 1, 1993. (B) The Synthetic Rubber Manual, 16th ed., International Institute of Synthetic Rubber Producers, Inc., 2005. (C) Blue Book, Rubber World.
(D) Communication with industry. © 2015 IHS
Solution polymerization
In a typical solution-polymerization process for the manufacture of polybutadiene elastomers, butadiene and a suitable
solvent are dried and charged to a series of polymerization reactors together with the correct amount of catalyst.
Generally, the conversion rate is about 70–90%. The reactor effluent is contacted with a stabilizer-shortstop solution to
end the reaction. Catalyst residues are subsequently removed, and the polymer is stripped with steam to remove
unreacted butadiene and solvent components. The polymer coagulates as a rubber crumb. The crumb rubber is separated,
washed, dewatered, dried, and baled. The solvent and unreacted butadiene is recovered, separated, purified, and recycled.
The high-cis processes, which employ neodymium, nickel, and cobalt catalysts, are capable of producing polybutadiene
elastomers that have a cis content in the 92–99% range.
Oil-extended polymers
If oil-extended rubber is desired, oil is mixed into the polymer cement shortly before the coagulation and recovery of the
rubber crumb occurs. The crumb is then recovered, washed, dewatered, dried, and baled in a manner similar to that for the
oil-free polymer. Carbon black may also be added to the oil-extended polymer cement to facilitate the processing of high-
molecular-weight (high Mooney viscosity) PBR without altering its desirable properties. Tires made from blends
containing high-molecular-weight PBR possess a desirable balance of tread wear and traction properties.
Processing and compounding

Solution-process polybutadiene elastomers are highly resistant to breakdown, but have poor processing characteristics
compared with SBR elastomers. A Banbury® mixer and a roll mill are generally used for mastication and mixing. Since
solution polybutadienes process satisfactorily when blended with other elastomers, they are usually combined with SBR,
natural rubber, or polychloroprene. Polybutadiene elastomers can be compounded with processing oils (e.g., aromatic or
naphthenic oil) and reinforcing fillers (e.g., carbon black and precipitated silica, which is more expensive than carbon
black, but is more environmentally friendly) to produce low-cost compounds with good physical properties. Antioxidants
and antiozonants are added for protection from long-term aging. Polybutadiene rubber is cured using conventional sulfur
or peroxide systems, typically 1.5–2.0 parts of sulfur per 100 parts of polymer. It is slower-curing than natural rubber and
requires more acceleration. Polybutadiene rubber compounds can be processed on conventional rubber processing
machinery (e.g., calender and extruder).

End uses
This section briefly discusses the different end uses of polybutadiene elastomers.
Tires and tire products

Tires and tire products continue to be the largest end-use market for polybutadiene rubber (PBR). Typical tire components
containing PBR include sidewalls, body plies, tread, chafer, and bead compounds. These components make use of the high
resilience, abrasion resistance, and good flex fatigue characteristics of polybutadiene rubber. The use of PBR in tires helps
to reduce the rolling resistance (especially high cis-content PBR, such as Nd-PBR), which thus brings on fuel efficiency, an
important aspect in today’s society. Polybutadiene rubber contributes to low-temperature flexibility in tires and increases
their resistance to aging, resulting in longer service life. Because of its high elasticity and low glass transition temperature,
some companies have used PBR to improve properties and performance in many tire parts. However, low glass transition
temperatures (below -90°C) because of low vinyl content also lead to poor wet traction; thus, PBR is blended with other
elastomers for tread compounds. Tire treads are made of blends with SBR or natural rubber, which serve to increase
traction and wet skid resistance under normal road conditions.
Impact modifiers
Polybutadiene rubber is used for impact modification of plastics and resins, mainly high-impact polystyrene, and to some
extent ABS resins. In addition to improving toughness, an impact modifier also increases elongation, ductility, and
environmental stress cracking. The offset to rubber use is a loss of clarity and a large decrease in tensile strength and
modulus.
Polybutadiene is the most important elastomer used for impact modification, although other materials such as styrene-
butadiene block polymers and ethylene-propylene-diene (EPDM) rubber are used to a lesser degree. These other modifiers
may be combined with PBR in ABS to enhance the final plastic resin. For impact modification, high-purity, essentially gel-
free PBR, with little or no color is required. According to industry sources, various improvements are made by adding PBR
to compounds based on natural or synthetic rubbers. These include processing improvements such as rate of extrusion,
dimensional stability, molding behavior, reversion resistance, and reduction in mill sticking, and vulcanizate
improvements for abrasion resistance, elastic properties, crack resistance, low-temperature flexibility, and aging
resistance.
Polystyrene
Polybutadiene is used as the backbone rubber for graft polymerizations, and most commercial impact polystyrenes
contain 3–12% (by weight) of polybutadiene. Masterbatches for blending with general-purpose resin have PBR
concentrations of 8–12%. High- and super-high-impact grades typically contain greater than 8% PBR elastomer, medium-
impact grades contain about 5–8%, and lower-impact grades contain 3–5%. The impact strength increases with the rubber
content and with decreasing particle size of the rubber. The average polybutadiene content of rubber-modified impact
polystyrene resins is believed to be about 6–7%.
Styrene polymerization with PBR improves the impact strength of the polystyrene, despite adverse effects on resin
stiffness and appearance. Impact modifications also allow processing ease and good dimensional stability.
Impact polystyrenes are used in injection molding and extrusion. Major impact polystyrene applications include
thermoformed products for packaging; appliances, television cabinets, and other electrical and electronic equipment;
toys, sporting goods, and recreational articles; and housewares, furniture, and furnishings. High-impact polystyrene can
also be blended with polyphenylene ether to make Noryl® blends.
ABS
ABS resins are the only significant rubber-modified copolymers. A wide range of ABS resins are available because of the
variations possible in both type and amount of PBR employed, as well as the levels of styrene and acrylonitrile.

A number of commercially significant processes are used to manufacture ABS. Emulsion processes (employing
polybutadiene latex produced via emulsion polymerization of butadiene monomer) are widely used because of their
flexibility in manufacturing ABS resins with various impact strengths, surface gloss levels, and other properties. However,
polybutadiene latex is an intermediate product and is generally not reported as polybutadiene rubber production. It is
therefore not included in the solution PBR balances shown in the main body of this report. The final rubber content of
ABS from an emulsion process is generally in the 15–25% range, averaging 20%.
Mass polymerization processes are based on the use of solution-polymerized polybutadiene rubber. It is claimed that mass
polymerization processes give a more uniform ABS and have lower operating costs and reduced emissions. In practice,
mass process uniformity may restrict the potential number of grades. Surface gloss is generally lower in the final product
because of the larger PBR particle size employed in the mass process, but at least one producer manufactures high-gloss
resin by mass polymerization. Mass process operations have been more geared to servicing this market, which is an inter-
material battleground for ABS and lower-cost polypropylene.
The polybutadiene content of mass-polymerized ABS is usually around 12–14%. The upper limit is about 15% because of
viscosity restrictions in the process.
Industrial products
Polybutadiene rubber is used in the manufacture of various automotive molded and extruded goods, as well as industrial
products such as V-belts, conveyor belt coverings, hose covers and tubes, seals, gaskets, sheet packings, play balls, and solid
golf ball centers. Small amounts are also used in wire insulation, sponge rubber products, and a variety of mechanical
goods.

Supply and demand by region
World
Capacity
The table below gives an overview of the historical, current, and forecast capacity for polybutadiene elastomers in all
countries and regions individually discussed in this report.
World average annual capacity for polybutadiene elastomers by region

Average annual growth rate
(percent)_______________
2012 2015 2020 2012–15 2015–20
North America
United States 675 655 630 -1.0 -0.8
Canada 0 0 0 0.0 0.0
Mexico 20 20 20 0.0 0.0
Total North America 695 675 650 -1.0 -0.8
South America 106 106 106 0.0 0.0
Western Europe 451 451 451 0.0 0.0
Central Europe 80 80 135 0.0 11.0
CIS and Baltic States 475 475 475 0.0 0.0
Middle East 25 25 100 0.0 32.0
Africa 47 47 47 0.0 0.0
Indian Subcontinent 75 105 205 11.9 14.3
Northeast Asia
China 987 1,728 2,033 20.5 3.3
Japan 333 357 357 2.3 0.0
South Korea 522 522 522 0.0 0.0
Taiwan 135 135 135 0.0 0.0
Total Northeast Asia 1,977 2,742 3,047 11.5 2.1
Southeast Asia 112 232 412 27.5 12.2
Total 4,043 4,938 5,628 6.9 2.7
For 2015, the total average annual nameplate capacity of polybutadiene elastomers amounts to more than 4.9 million
metric tons. This is almost 900 thousand metric tons (22%) higher than in 2012 and translates into an average annual
growth rate of 6.9%. The main driver behind capacity growth in this time period was the large increase seen in China,
where more than 740 thousand metric tons of new capacity were brought on stream within in the last three years alone,
based on annual average figures. While Saudi Arabia, Hungary, and Indonesia will also start production of polybutadiene
elastomers in the next couple of years and enter the group of global producers, a small amount of capacity will be lost in
the United States as one plant has now completely been switched to solution SBR; this is the reason for the negative
growth rates shown for North America in the table above. In addition, new production capacities will continue to be built
in the largest consuming market, China, as well in India. Overall, the global capacity base is expected to expand further in
the forecast period but at a somewhat slower pace than historically seen, with average annual growth rates projected to be
around 2.7% annually.
The following table provides an overview of the 15 largest worldwide producers of polybutadiene elastomers and their
global capacity distribution, based on average annual data for 2015.

World top producers of polybutadiene elastomers—2015

Global North South Western CIS and Indian Northeast Southeast Percent
position Company America America Europe Baltic States Subcontinent Asia Asia Total of total
1 Sinopec 0 0 0 0 0 612 0 612 12.4
2 Lanxess 215 106 175 0 0 0 70 566 11.5
3 Kumho Group 0 0 0 0 0 342 0 342 6.9
4 CNPC 0 0 0 0 0 294 0 294 6.0
5 Goodyear 250 0 0 0 0 0 0 250 5.1
6 Nizhnekamskneftekhim 0 0 0 200 0 0 0 200 4.1
7 Ube Industries 0 0 0 0 0 143 45 188 3.8
8 LG Group 0 0 0 0 0 180 0 180 3.6
9 Bridgestone 165 0 0 0 0 0 0 165 3.3
10 Shandong Yuhuang 0 0 0 0 0 160 0 160 3.2
11 Sibur 0 0 0 155 0 0 0 155 3.1
12 ENI SpA (Versalis) 0 0 130 0 0 0 0 130 2.6
13 ZSK Yefremow 0 0 0 120 0 0 0 120 2.4
14 TSRC 0 0 0 0 0 95 14 109 2.2
15 Reliance Industries 0 0 0 0 105 0 0 105 2.1
Total 630 106 305 475 105 1,826 130 3,576 72.4
a. Data are compiled on a shareholder basis. Capacities of subsidiaries and joint ventures are counted based on the respective percentage shares.
b. Percentage shares are based on a total capacity of 4938 thousand metric tons.
The analysis of the total nameplate capacities for polybutadiene elastomers in 2015 on a shareholder basis shows that
there has not been much change among the top 15 producers since 2012, with only one name being different, as Michelin
has been replaced by Reliance Industries. While producers such as the Kumho Group, Shandong Yuhuang, ENI SpA
(Versalis), and ZSK Yefremov held their positions in the ranking, others could not do so. The China Petrochemical
Corporation (Sinopec) has surpassed Lanxess as the world’s largest producer of polybutadiene elastomers in recent years,
and other Asian companies such as the China National Petroleum Corporation (CNPC), Ube Industries, and the Taiwan
Synthetic Rubber Company (TSRC) also climbed higher. At the same time, some of the more traditional producers,
including Lanxess, Goodyear, Nizhnekamskneftekhim (NKNK), and Bridgestone moved down in the list as the majority of
capacity additions in the last couple of years have been concentrated in Asia, especially in China.
Based on 2015 annual averages, the 15 largest producers of polybutadiene elastomers operate about 72% of the global
capacity. About 51% of their combined capacities are concentrated in Northeast Asia, especially in China, while about 18%
are located in North America (mainly the United States), and 13% in Western Europe (France, Germany, Italy, and the
United Kingdom). While the basic composition of the top 15 producers is not expected to change much in the forecast
period, some shuffling around in the ranking will likely be seen and with the entrance of some new smaller players, the
combined global share of the biggest players will drop to about 69%.
Salient statistics
The following table presents the global supply and demand balance for polybutadiene elastomers.

World supply/demand for polybutadiene elastomers

Annual Operating rate Actual
capacitya (percent) Production Imports Exports consumption
1990 2,019 86 1,739 286 286 1,739
1995 2,305 83 1,923 475 475 1,923
1996 2,446 82 2,009 510 510 2,009
1997 2,565 83 2,140 689 689 2,140
1998 2,775 78 2,176 661 661 2,176
1999 2,960 79 2,330 759 759 2,330
2000 2,979 82 2,433 766 766 2,433
2001 3,057 74 2,248 724 724 2,248
2002 3,056 77 2,348 760 760 2,348
2003 3,057 80 2,442 776 776 2,442
2004 3,051 85 2,606 949 949 2,606
2005 3,078 82 2,528 974 974 2,528
2006 3,227 83 2,680 1,030 1,030 2,680
2007 3,252 86 2,802 1,111 1,111 2,802
2008 3,274 82 2,672 1,045 1,045 2,672
2009 3,309 75 2,490 935 935 2,490
2010 3,468 79 2,757 952 952 2,757
2011 3,759 80 3,014 1,211 1,211 3,014
2012 4,043 77 3,120 1,134 1,134 3,120
2013 4,455 72 3,217 1,131 1,131 3,218
2014 4,759 66 3,129 1,114 1,114 3,129
2015 4,938 66 3,259 1,096 1,096 3,259
2020 5,628 69 3,890 1,095 1,095 3,890
(percent)
2015- 2.7 — 3.6 0.0 0.0 3.6
2020
In 2015, global production of polybutadiene elastomers is estimated to reach a total volume of almost 3.6 million metric
tons. This is only about 139 thousand metric tons (4.4%) more than in 2012 but more than 500 thousand metric tons
(18.2%) higher than the volume produced in 2010. Overall, production (and consumption) levels increased at an average
rate of 3.4% annually in the last five years while the nameplate capacity base expanded by about 7.3% at the same time,
driven mainly by the large amount of new production capacity brought onstream in China. As a result, global operating
rates dropped from historical levels (around 80%) to levels close to or below 70% in recent years.
The current situation of global oversupply is expected to persist and worsen slightly in the forecast period as nameplate
capacities for polybutadiene elastomers will continue to grow ahead of domestic demand. Even though a few new
production plants are still expected to be brought onstream in China, India, Saudi Arabia, Hungary, and Indonesia, the
nameplate capacity base will expand at a much slower pace than seen in the last few years. This is reflected in smaller
average annual growth rates of about 2.7%. This compares with forecast growth of about 3.6% annually for polybutadiene
elastomer consumption and production. Average annual operating rates are therefore assumed to remain flat or even
improve slightly by the end of 2020 versus 2015, and reach levels in the high-60% range.
The distribution of polybutadiene elastomers by region for the years 2015 and 2020 is illustrated in the charts below.


! # #
" ! $

"

$ % & "' % % & ' ( &
Northeast Asia (China in particular) is by far the largest consuming region of polybutadiene elastomers in the world and
accounts for 45% of the total global consumption in 2015, followed at some distance by North America and Western
Europe, which account for comparable shares of about 13–14% each. Looking ahead at 2020, the Indian Subcontinent
(mainly India), currently ranking third, is expected to surpass both Central Europe and South America, driven by the
developments projected for the Indian tire industry. Even though demand growth in the developed markets is forecast to
improve again, if only slightly, in the next couple of years, both North America and Western Europe will likely account for
slightly smaller consumption shares of about 12% each in 2020, while Northeast Asia’s share is forecast to increase
further, to about 47%.
Prices
Historical data and descriptions for the main polybutadiene rubber reference prices in the United States, Western Europe,
and Asia are given in the table and comments below.

Regional prices of polybutadiene elastomers

(dollars per metric ton)
United Statesa Western Europeb Asiac
1990 1,255 1739 —
1995 1,391 1426 —
1996 1,273 1331 —
1997 1,077 1149 1,074
1998 957 1031 769
1999 829 887 654
2000 1,030 946 890
2001 996 940 828
2002 969 931 823
2003 1,152 1237 1,125
2004 1,260 1398 1,529
2005 1,759 1778 1,755
2006 1,933 1875 1,767
2007 2,039 2165 1,955
2008 2,844 2727 3,133
2009 2,028 1703 1,670
2010 2,893 2545 2,828
2011 3,950 3789 4,071
2012 3,671 3428 3,138
2013 2,732 2523 2,100
2014 2,604 2310 1,837
a. Polybutadiene rubber (PBR), contract market medium buyer, average, FOB United States.
b. Polybutadiene rubber (PBR), contract market, CIF Western Europe
c. Polybutadiene rubber (PBR), spot, CFR Asia/Pacific.
In the United States, the main reference is the average contract price for a medium-sized buyer of polybutadiene rubber.
The price is intended to be representative of all PBR grades, which means that a wide price range is inherent in these
numbers. In Western Europe, the monthly contract price applied to polybutadiene rubber also represents the average of
different catalyst grades. Until the end of 2010, regional contract prices were settled on a quarterly basis, in line with
butadiene, but the increasing volatility of feedstocks has driven a change to monthly settlements, effective in January
2011. In Asia, the monthly average spot price for polybutadiene rubber results from the Northeast Asian and Southeast
Asian CFR spot prices in the last week of the month. All annual prices shown in the tables above are averages of the
respective monthly price quotations.
The bibliography at the end of this report includes a list of IHS Chemical services with more information about prices and
production cash costs for polybutadiene rubber.
Trade
The tables below illustrate historical and forecast intra- and interregional trade flows of polybutadiene rubber in 2014,
2015, and 2020. Intraregional trade is excluded for Western Europe, as trade data for the region as a whole are being
reported in aggregated format rather than on a country-by-country basis. All figures are based on actual data as available
through mid-2015, with 2020 estimates based on supply and demand balances.

Regional polybutadiene elastomers trade—2014

Exports
by:_______________________________________________________________________________________________________
North South Western Central CIS and Middle Indian North- South-
east east
Imports by: America America Europe Europe Baltic States East Africa Subcontinent Asia Asia Total
North America 57 6 24 0 2 0 3 0 43 2 137
South America 49 4 5 0 21 0 0 0 5 1 85
Western Europe 49 5 0 28 56 0 2 0 67 3 210
Central Europe 0 0 74 7 50 0 2 0 2 1 136
CIS and Baltic States 0 0 0 0 5 0 0 0 0 2 7
Middle East 0 0 10 0 14 0 0 0 14 1 38
Africa 2 0 2 0 1 0 0 0 0 0 5
Indian Subcontinent 4 0 4 8 4 0 0 0 24 2 46
Northeast Asia 25 0 11 2 48 0 0 0 197 10 291
Southeast Asia 10 0 0 0 0 0 0 0 150 0 160
Total 195 15 130 45 200 0 7 0 502 20 1,114

Exports
by:_______________________________________________________________________________________________________
east east
North America 59 7 21 0 2 0 3 0 40 2 134
South America 52 4 6 0 23 0 0 0 5 0 90
Western Europe 48 4 0 12 57 0 2 0 59 3 185
Central Europe 0 0 75 3 47 0 2 0 2 1 131
Middle East 0 0 12 0 14 0 0 0 14 0 40
Africa 2 0 3 0 0 0 0 0 0 0 5
Northeast Asia 24 0 10 10 47 0 0 0 174 15 280
Southeast Asia 10 0 0 0 0 0 0 0 157 0 167
Total 200 15 135 25 200 0 7 0 474 40 1,096


Exports
by:_______________________________________________________________________________________________________
east east
North America 65 4 14 0 3 17 2 0 5 1 110
South America 54 4 3 0 36 0 0 0 5 0 102
Western Europe 11 2 0 12 62 23 0 0 25 36 171
Central Europe 0 0 65 3 44 0 1 0 0 0 113
Middle East 0 0 0 0 8 15 0 0 6 11 40
Africa 2 0 3 0 0 0 0 0 0 0 5
Northeast Asia 29 0 7 10 75 0 0 0 187 37 345
Southeast Asia 10 0 0 0 0 0 0 0 145 0 155
Total 175 10 93 25 242 55 3 0 380 112 1,095
For 2015, world trade of polybutadiene elastomers is estimated to reach a volume of 1096 thousand metric tons, which is
only slightly lower than in 2014 and represents almost 34% of global production. The United States (North America),
Russia (CIS and Baltic States), Japan, and Northeast Asia (South Korea) are currently the largest exporters of this material
and combined they account for about 71% of world polybutadiene elastomers exports, based on 2015 estimates. Looking at
import data, the regions with the largest requirement are Northeast Asia, (mainly China), Western Europe (Germany and
Belgium), and Southeast Asia (Indonesia and Vietnam).
Looking forward, the total traded volume of polybutadiene elastomers is not expected to change much in the forecast
period, but will remain at a level comparable to the 2015 estimate. However, there will likely be a shift in the trade flows as
new export-oriented capacities in the Middle East (Saudi Arabia) and Southeast Asia (Singapore) are expected to reduce
the amount of material previously exported by the more traditional markets such as the United States, Western Europe,
and Northeast Asia.
North America
North America includes Canada, Mexico, and the United States.
Overview
Capacity
For 2015, the average annual nameplate capacity of polybutadiene rubber in North America amounts to about 675
thousand metric tons, representing 13.7% of the total global capacity. As can be seen in the chart below, about 97% of the
regional capacity is located in the United States, while Mexico accounts for the remaining 3%. Even though no production
capacity for polybutadiene rubber is currently installed in Canada, it is discussed in an individual section of this report.


With a total capacity of 250 thousand metric tons based on average annual data for 2015, Goodyear is the largest producer
of polybutadiene elastomers in the region, followed by LANXESS and Bridgestone. This is not expected to change in the
forecast period as there are currently no capacity expansions or closures planned in North America during this timeframe.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in North America.

North American supply/demand for polybutadiene elastomers

1990 576 84 482 117 136 463
1995 683 87 597 149 172 574
1996 709 90 638 160 213 585
1997 763 88 672 159 254 577
1998 763 90 686 156 219 623
1999 838 84 707 197 241 663
2000 863 89 768 194 257 704
2001 908 73 659 161 258 561
2002 886 86 761 154 260 655
2003 806 90 723 127 241 608
2004 795 95 752 153 299 606
2005 775 85 657 176 283 550
2006 755 88 662 159 297 524
2007 735 88 646 142 312 476
2008 735 78 576 141 269 449
2009 715 65 468 89 206 351
2010 715 76 544 111 229 426
2011 695 79 550 108 310 348
2012 695 69 480 121 215 386
2013 675 72 484 120 244 360
2014 675 73 491 137 195 433
2015 675 73 490 134 200 424
2020 650 84 545 110 175 480
(percent)
2015- -0.8 — 2.1 -3.8 -2.6 2.5
2020
Regional production of polybutadiene elastomers in North America is estimated to amount to 490 thousand metric tons
in 2015, compared with 480 thousand metric tons produced in 2012 and 544 thousand metric tons in 2010. This shows an
annual decline of about 2% over the five year period. Even though some production capacity still exists in Mexico,
production was halted years ago, making the United States the only producer in the region. Overall, operating rates have
declined from historical levels averaging in the high 80% range to levels averaging in the low 70% range during the last five
to seven years. While actual consumption levels rebounded in the postrecession year of 2010, weaker domestic demand
was registered again in the three following years, driven primarily by developments in the US tire industry, the largest
regional consumer. In 2014, the market recovered again, but overall demand still remains well below historical levels, and
the region as a whole continues to be a net exporter of polybutadiene elastomers.
During the forecast period, domestic demand growth in North America will continue to be driven by the US market,
which accounts for about 84% of total consumption. Production levels are projected to increase more or less in line with
demand, at average annual rates of about 2–2.5%. While the region will likely remain a net importer of polybutadiene
elastomers in the next couple of years, volumes are expected to be lower than historically seen, as a result of increasing
competition from new capacities starting up in Saudi Arabia and Asia.
Trade
North America is a net exporter of polybutadiene elastomers, mainly as a result of the considerably large surplus of
material available in the US market, as both Canada and Mexico depend fully on imports. Average annual net export
volumes have been as high as 202 thousand metric tons in 2011, but dropped significantly in recent years to levels around
60 thousand metric tons due to improving demand combined with stagnating production. Based on 2015 estimates,
almost 30% of all exports are traded within the region, with the remainder typically going to Western Europe, South

America (Brazil), China, India, and Southeast Asia. Imports into the region are mainly from South Korea and Western
Europe.
In the future, North America’s net export position for polybutadiene elastomers is not expected to changed much as
import and export volumes are projected to decline in line with each other. Overall, the available surplus will likely
remain at an average annual level of about 65 thousand metric tons, which is very close to the 2015 estimate.
United States
Producing companies
The following table provides an overview of all polybutadiene elastomer producers in the United States, including
information about their location and production capacity.
US producers of polybutadiene elastomers

Average annual capacity
Company Plant location 2012 2015 2020 Remarksa
ASRC Louisville, KY 45 25 0 Multipurpose plant, wholly owned by Michelin,
switch from PBR to sSBR in mid-2015
Bridgestone/Firestone Orange, TX 165 165 165 Ni/Li catalysts
Goodyear Beaumont, TX 250 250 250 Ni catalyst
Lanxess Orange, TX 215 215 215 High cis with Nd and Co catalysts, low cis with Li
Total 675 655 630
a. Li = Lithium, Ni = Nickel, Nd 0 Nedodymium, Co = Cobalt, PBR = polybutadiene rubber, sSBR = solution styrene-butadiene rubber.
As of 2015, the average annual capacity for polybutadiene elastomers amounts to 655 thousand metric tons, which is 20
thousand metric tons less than in 2012. This decrease is linked to the American Synthetic Rubber Company (ASRC) plant
at Louisville, Kentucky, which has recently switched operations to produce solution SBR instead of PBR, ultimately
reducing capacity for polybutadiene elastomers by 45 thousand metric tons. Following this change, Goodyear remains the
largest producer in the United States, with LANXESS ranking second and Bridgestone/Firestone third. With neither
expansions nor closures expected to take place in the United States beyond the forecast period, the installed capacity will
remain flat at a level of 630 thousand metric tons.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in the United States.

US supply/demand for polybutadiene elastomers

1990 480 84 403 84 94 393
1995 600 89 535 82 132 485
1996 626 90 562 87 156 493
1997 668 90 601 95 197 499
1998 668 92 614 97 173 538
1999 743 84 627 127 185 569
2000 768 90 691 118 201 608
2001 798 74 594 90 212 472
2002 798 86 685 92 212 565
2003 786 91 713 61 241 533
2004 775 95 738 77 294 521
2005 755 86 650 97 280 467
2006 735 89 656 81 297 441
2007 715 90 644 70 312 402
2008 715 81 576 72 269 380
2009 695 67 468 33 206 295
2010 695 78 544 50 229 365
2011 675 81 550 42 310 282
2012 675 71 480 57 215 322
2013 655 74 484 55 244 295
2014 655 75 491 70 195 366
2015 655 75 490 65 200 355
2020 630 87 545 35 175 405
(percent)
2015- -0.8 — 2.1 -11.6 -2.6 2.7
2020
Both production and consumption of polybutadiene elastomers in the United States decreased considerably during 2008
and 2009 as a result of the impact of the global economic crisis (recession). The US tire industry reduced, idled, and closed
tire production units in this time period, which affected domestic rubber production rates as well as overall demand in the
region. While the first signs of a partial recovery for polybutadiene elastomers consumption were seen in 2010, as the
automobile and tire industries ramped up, domestic demand dropped quickly and has only improved again in more recent
years. Overall, actual consumption levels have been more or less unchanged versus 2010, with average annual decline rates
of 0.5% registered for the last five years.
For 2015, total production of polybutadiene elastomers is estimated to reach a volume of 490 thousand metric tons, only
about 10 thousand metric tons higher than in 2012. Compared with 2010, production levels have actually decreased by 54
thousand metric tons, translating into an average annual decline rate of about 2%. As nameplate capacities also dropped
slightly, following the switch in production at the ASCR plant in Louisville, Kentucky, operating rates stayed at average
levels in the mid- to high-70% range, much lower than historically seen. With the decreases in production levels being
more pronounced than the drop in actual consumption levels, there was ultimately less material available for the export
market, as can be seen in the table above.
The current outlook is that both production and consumption of polybutadiene elastomers in the United States will
improve again during the forecast period, with average annual growth rates expected to be around 2.1% and 2.7%,
respectively. Nameplate capacities, on the other hand, are projected to decline slightly as a result of the full conversion of
the ASCR plant to solution SBR production, completed by the end of 2015. Overall, operating rates will recover to levels in
the high 80% range, while net exports remain mostly unchanged, if slightly higher, from the volumes seen in 2014–15.

Trade
The United States is a considerably large net exporter of polybutadiene elastomers (one of the largest in the world), with a
maximum net export volume of 268 thousand metric tons in 2011. Production levels and export volumes have declined
significantly in recent years and are estimated to be around 135 thousand metric tons in 2015. US exports are typically
destined for Western Europe, Canada, Mexico, Brazil, and China, while imports come primarily from South Korea and
Western Europe.
The current outlook is for both import and export volumes to decline during the forecast period, which will be driven
mainly by improving production levels, increasing domestic demand, and more competition in the global export market.
Overall, there will not be much change to the total net export position, with annual volumes projected to remain on the
order of 140–150 thousand metric tons on average.
Canada
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in Canada.
Canadian supply/demand for polybutadiene elastomers

1990 66 70 46 23 31 38
1995 63 86 54 39 39 54
1996 63 89 56 40 53 43
1997 75 68 51 48 54 45
1998 75 76 57 43 46 54
1999 75 85 64 53 56 62
2000 75 84 63 57 55 65
2001 90 61 55 51 46 61
2002 68 97 66 44 48 62
2003 — — — 49 — 49
2004 — — — 58 2 56
2005 — — — 61 1 60
2006 — — — 59 — 59
2007 — — — 47 — 47
2008 — — — 44 — 44
2009 — — — 38 — 38
2010 — — — 38 — 38
2011 — — — 39 — 39
2012 — — — 39 — 39
2013 — — — 40 — 40
2014 — — — 40 — 40
2015 — — — 41 — 41
2020 — — — 42 — 42
(percent)
2015- — — — 0.5 — 0.5
2020
There are currently no producers of polybutadiene elastomers in Canada. The Bayer multipurpose plant at Sarnia, Ontario,
which halted production in 2002, primarily served the tire and plastics modification markets, while in more recent years,
tires and tire products have accounted for almost all Canadian production. Since the beginning of 2003, all of the
country’s domestic demand has been met by imports. For 2015, actual consumption is estimated to reach a level of 41

thousand metric tons, only slightly more than in 2012. Annual average growth rates have been around 1.3% during 2010–
15. Looking ahead, consumption of polybutadiene elastomers is projected to reach a level of 42 thousand metric tons by
2020, representing an average annual growth rate of 0.5%. With no capacities planned to be brought onstream, Canada
will continue to depend on imports, which increase in line with domestic demand.
Trade
While Canada has historically been a small net exporter of polybutadiene elastomers, it moved to a net import position in
2003 following the shutdown of the multipurpose synthetic rubber plant at Sarnia, Ontario. During the last decade,
annual import volumes dropped in line with domestic demand, from 60 thousand metric tons in 2005 to about 41
thousand metric tons estimated for 2015. Most of the required material is coming from the United States, while smaller
volumes are supplied by Western Europe, Russia, and Northeast Asia (China and Taiwan). This is not expected to change
much in the forecast period.
Mexico
Producing companies
The following table provides an overview of all polybutadiene elastomers producers in Mexico, including information
about their locations and production capacity.
Mexican producers of polybutadiene elastomers

DYNASOL Altamira 20 20 20 SBC or special grade of PBR
Total 20 20 20
a. SBC = styrene block copolymers, PBR = polybutadiene rubber.
Dynasol remains the only company with polybutadiene elastomers capacity in Mexico. The Altamira plant has not been
operating since 2008, as the company shifted its focus to the production of solution SBR and SBS. While the PBR unit
could potentially be restarted again, this is not expected to happen during the forecast period.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in Mexico.

Mexican supply/demand for polybutadiene elastomers

1990 30 110 33 10 11 32
1995 20 40 8 28 1 35
1996 20 100 20 33 4 49
1997 20 98 20 17 3 34
1998 20 77 15 16 0 31
1999 20 82 16 17 0 33
2000 20 70 14 19 1 32
2001 20 48 10 19 1 28
2002 20 52 10 18 — 28
2003 20 50 10 16 — 26
2004 20 70 14 18 3 29
2005 20 35 7 18 2 23
2006 20 30 6 19 — 25
2007 20 10 2 25 — 27
2008 20 — — 25 — 25
2009 20 — — 18 — 18
2010 20 — — 23 — 23
2011 20 — — 27 — 27
2012 20 — — 25 — 25
2013 20 — — 25 — 25
2014 20 — — 27 — 27
2015 20 — — 28 — 28
2020 20 — — 33 — 33
(percent)
2015- 0.0 — — 3.6 — 3.6
2020
Even though there is still some existing capacity for polybutadiene elastomers in Mexico, production was halted in 2007
and the country has depended on imported material since then. For 2015, actual consumption is estimated to reach a
volume of 28 thousand metric tons, which is about 3 thousand metric tons higher than in 2012 and about 5 thousand
metric tons more than 2010, translating into an average annual growth of 3.7%. Looking ahead at 2020, domestic demand
is forecast to grow at a similar pace, about 3.6% annually. In Mexico, polybutadiene elastomers are used primarily in the
production of tires and tire products, but also in plastics modification as well as the manufacturing of shoes, rubber goods,
and confectionary. Small quantities are also used in HIPS formulations. As no changes are currently expected with respect
to nameplate capacities, imported material will likely remain the only source of supply in the future.
Trade
Mexico has been a small net importer of polybutadiene elastomers for many years. Since production from the only
Mexican plant was halted in 2007, annual import volumes have increased somewhat to meet domestic demand, from
average historical levels of about 20 thousand metric tons, to a slightly higher level of about 25 thousand metric tons.
Imported material is supplied almost entirely by the United States, with occasional small volumes coming from Western
Europe or Russia. While this is not expected to change, Mexican imports of polybutadiene elastomers are projected to
increase in line with domestic demand to a level of more than 30 thousand metric tons by the end of the forecast period.
South America
South America covers Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El
Salvador, Guatemala, Guyana, Honduras, Jamaica, Netherlands Antilles, Nicaragua, Panama, Paraguay, Peru, Suriname,
Trinidad and Tobago, Uruguay, and Venezuela.

Producing companies
For 2015, the average annual nameplate capacity for polybutadiene elastomers in South America is 106 thousand metric
tons, representing 2.1% of the total global capacity. All of the regional production capacity is located in Brazil.
The following table provides an overview of all polybutadiene elastomer producers in South America, including
information about location and production capacity.
South American producers of polybutadiene elastomers

Brazil
Lanxess Elastómeros do Brasil Cabo 106 106 106 Multipurpose plant, Li/Nd catalysts
Total 106 106 106
a. Li = Lithium, Nd = Neodymium.
LANXESS is currently the only regional producer of polybutadiene elastomers, operating a 106 thousand metric ton unit
at Cabo, Brazil. The company acquired the multipurpose plant from Petroflex in 2009. In 2014, Synthos announced its
plans to build a new Nd-catalyzed polybutadiene rubber plant with a capacity of 80 thousand metric tons on the site of the
Triunfo petrochemical complex near Rio Grande in Brazil. The unit, which would license technology from Michelin, was
originally expected to come onstream in 2018. However, due to a failure in securing the feedstock supply in the longer
term, Synthos recently decided not to move forward with the project for the time being. Therefore, the current outlook is
that the nameplate capacity for butyl elastomers in South America will remain unchanged at a level of 106 thousand
metric tons in the forecast period.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in South America.

South American supply/demand for polybutadiene elastomers

1990 58 91 53 34 2 85
1995 74 88 65 31 2 94
1996 74 62 46 42 3 85
1997 74 84 62 76 18 120
1998 74 68 50 64 11 103
1999 74 82 61 63 17 107
2000 79 90 71 66 22 115
2001 94 61 57 63 13 107
2002 94 68 64 60 18 106
2003 94 73 69 82 27 125
2004 109 62 68 99 22 145
2005 129 57 74 84 32 126
2006 150 56 84 89 35 139
2007 150 53 79 80 25 134
2008 150 53 80 74 25 129
2009 107 85 91 63 8 146
2010 106 86 91 52 — 144
2011 106 86 91 84 4 171
2012 106 86 91 78 18 151
2013 106 86 91 79 15 155
2014 106 85 90 85 15 160
2015 106 81 86 90 15 161
2020 106 81 86 102 10 178
(percent)
2015- 0.0 — -0.1 2.6 -7.8 2.0
2020
South American production of polybutadiene elastomers is concentrated in Brazil, and is estimated to reach a volume of
86 thousand metric tons in 2015. This is about 5 thousand metric tons lower than in 2012 and 2010, translating into an
average annual decline rate of about 1.1%. As a result, operating rates have dropped slightly from levels in the mid-80%
range to about 81% for the current year. Domestic demand for polybutadiene elastomers continued to increase at a
comparably healthy rate of about 2.3% annually in the last five years. The somewhat wider gap between supply and
demand has been filled by increasing imports, combined with slightly smaller export volumes than seen a decade ago.
Brazil is far the largest consumer of polybutadiene elastomers in the region and currently accounts for about 78% of the
total demand.
In the forecast period, domestic demand is projected to increase further by about 2% annually, on average, while
production levels are expected to remain more or less flat. Therefore, demand growth will be fully met by increasing net
import levels.
Trade
South America is a net importer of polybutadiene elastomers. While net import volumes have historically been around
40–50 thousand metric tons, in the last four years the country reached new high average annual levels of about 70
thousand metric tons. This has been driven primarily by increasing domestic demand in Brazil, the largest consuming
market, which resulted in higher imports combined with lower exports. The United States and Russia are the major
suppliers to the region and are estimated to account for about 84% of all imports in 2015. Exports out of Brazil are
comparatively small and mostly destined for the United States, Western Europe, and other South American countries. This
is not expected to change much in the forecast period, though with further increasing domestic demand and no changes

to the regional supply, South America will likely become a slightly larger net importer of polybutadiene elastomers in the
next couple of years.
Western Europe
Western Europe includes the countries of Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland,
Italy, Luxembourg, Malta, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.
Producing companies
For 2015, the average annual nameplate capacity for polybutadiene elastomers in Western Europe amounts to about 451
thousand metric tons, representing 9.1% of the total global capacity. As can be seen in the chart below, Germany and
France are the two biggest markets in the region and account for quite large capacity shares of about 39% and 32%,
respectively. Polybutadiene elastomers are also produced in the United Kingdom and Italy, which combined make up the
remaining 29%.

The following table provides an overview of all polybutadiene elastomers producers in Western Europe, including
information about their locations and production capacity.

Western European producers of polybutadiene elastomers

France
Lanxess Port Jerome 80 80 80 High cis (Nd) PBR
Michelin Bassens 65 65 65 Multipurpose plant with sSBR
Germany
Lanxess Dormagen 95 95 95 Li catalyst
Styron Schkopau 51 4 0 Li catalyst, to Trinseo (name change)
Schkopau 30 3 0 Ni catalyst, to Trinseo (name change)
Trinseo Schkopau 0 47 51 Li catalyst, from Styron (name change)
Schkopau 0 27 30 Ni catalyst, from Styron (name change)
Italy
Polimeri Europa Ravenna 20 0 0 Nd catalyst, renamed to Versalis
Versalis S.p.A. Ravenna 30 50 50 Nd catalyst, formerly Polimeri Europa
United Kingdom
Polimeri Europa Grangemouth 20 0 0 Li catalyst, 110kt PBR/sSBR swing plant, re-
named to Versalis
Versalis S.p.A. Grangemouth 60 80 80 Li catalyst, 110kt PBR/sSBR swing plant, formerly
Polimeri Europa
Total 451 451 451
a. Li = Lithium, Nd = Neodymium, sSBR = solution styrene-butadiene rubber, PBR = polybutadiene rubber.
As of 2015, the annual nameplate capacity of polybutadiene elastomers amounts to 451 thousand metric tons, which is
unchanged from 2012 as neither expansions nor closures have been seen. However, two regional producers have changed
their names in the last three years. In 2012, Polimeri Europa was renamed to Versalis, which impacted two PBR production
plants in Italy and the United Kingdom. In February 2015, Styron announced that it has changed its name to Trinseo. The
company operates two PBR units at Schkopau in Germany with a combined capacity of 81 thousand metric tons. With a
total production capacity of 175 thousand metric tons based on annual average data for 2015, Lanxess remains the largest
producer of polybutadiene elastomers in Western Europe, followed by ENI (Versalis), Trinseo, and Michelin. Looking
ahead to 2020, there are currently no changes to the capacity base expected to take place in the region.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in Western Europe.

Western European supply/demand for polybutadiene elastomers

1990 370 78 287 57 15 329
1995 396 80 315 102 64 353
1996 414 74 305 110 48 367
1997 444 78 345 125 69 401
1998 477 77 365 138 64 438
1999 498 76 380 141 82 439
2000 531 71 375 156 89 442
2001 548 65 355 153 80 428
2002 560 67 375 145 85 435
2003 570 72 410 143 109 444
2004 525 79 414 187 108 493
2005 492 81 400 185 107 478
2006 510 82 417 196 125 488
2007 521 84 440 195 110 525
2008 476 77 365 193 107 451
2009 451 71 319 161 90 390
2010 451 84 380 200 115 465
2011 431 86 373 243 125 491
2012 451 86 387 215 120 482
2013 451 85 382 210 105 487
2014 451 80 362 210 130 442
2015 451 87 393 185 135 443
2020 451 86 389 171 93 468
(percent)
2015- 0.0 — -0.2 -1.6 -7.3 1.1
2020
For 2015, total production of polybutadiene elastomers in Western Europe is estimated to reach a level of 393 thousand
metric tons, which is only slightly higher than in 2012. In the last five years, the regional output has remained more or less
flat, increasing at comparably small annual average rates of about 0.7%. With no changes to the nameplate capacity base
seen in this time period, operating rates improved somewhat and reached average levels in the mid-80% range, versus
historical levels in the mid-70% range. While domestic demand for polybutadiene elastomers recovered from the low level
seen in the recession year of 2009, the upward trend has reversed again in more recent years, resulting in an average
annual decline of about 1%. Nevertheless, actual consumption levels are still exceeding supply and the region has
remained a net importer of an average of about 90 thousand metric tons annually.
The current outlook is that domestic demand for polybutadiene elastomers in Western Europe will improve again and
increase at an average annual rate of about 1.1% in the forecast period. At the same time, nameplate capacities are expected
to remain flat and production levels are forecast to decline slightly. However, the start-up of new export-oriented
production capacities in the Middle East and Asia will likely put some pressure on exports and reduce opportunities for
European producers to sell into the Asian market. This will leave some material that was previously exported to meet the
additional requirement from the domestic market.
Trade
Despite its considerably large nameplate capacity base, Western Europe has been a net importer of polybutadiene
elastomers for many years as regional supply covers only about 80–90% of the total domestic demand. It should be noted
that contrary to other regions discussed in this report, the trade figures shown for Western Europe exclude intraregional
movements, as data are reported in aggregated format only. The average annual net import volume reached a maximum
level of about 118 thousand metric tons in the postrecession year of 2011 and is estimated to drop to 50 thousand metric

tons in 2015, mainly driven by stagnating and decreasing consumption. The majority of exports out of Western Europe are
destined for Central Europe (Hungary), the United States, and China, while imports come mainly from Russia, the United
States, the Czech Republic, Japan, South Korea, and Taiwan.
Looking ahead to 2020, Western Europe will likely remain a net importer of polybutadiene elastomers. Annual net import
volumes are expected to increase again from the trough in 2015. This will be driven mainly by the loss of export volumes
caused by increasing competition from new low-cost producers in Saudi Arabia and Singapore that are better positioned
near the largest consuming markets in the Far East.
Central Europe
Central Europe includes Bulgaria, the Czech Republic, Hungary, Poland, Romania, and Slovakia as well as the countries of
former Yugoslavia (Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, Slovenia, and Serbia).
Producing companies
For 2015, the annual nameplate capacity for polybutadiene elastomers in Central Europe amounts to 80 thousand metric
tons, representing about 1.6% of the total global capacity. All of the regional production capacity is currently located in the
Czech Republic.
The following table provides an overview of all polybutadiene elastomers producers in Central Europe, including
Central European producers of polybutadiene elastomers

Czech Republic
Synthos Kralupy Kralupy 80 80 80 High cis (Nd) PBR, multipurpose plant with SBR,
start-up in mid-2011
Total 80 80 80
a. Nd = Neodymium, SBR = styrene-butadiene rubber, PBR = polybutadiene rubber.
Synthos Kralupy is currently the only producer of polybutadiene elastomers in the region. The company’s production unit
at Kralupy in the Czech Republic was started up in the middle of 2011 and has a nameplate capacity of 80 thousand metric
tons. Synthos commissioned another PBR/SBR swing plant at Krakow, Poland in mid-2015, which has a capacity of 90
thousand metric tons and currently produces only solution SBR. While not reflected in the producer table above, as
nothing has been officially confirmed, the current supply and demand outlook discussed in the next section includes the
assumption that new PBR production capacity could potentially be added in Hungary during the forecast period.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in Central Europe.

Central European supply/demand for polybutadiene elastomers

1990 110 34 37 9 3 43
1995 15 — — 10 7 3
1996 15 — — 18 3 15
1997 15 — — 56 10 46
1998 12 — — 67 11 56
1999 12 — — 55 8 47
2000 — — — 52 5 46
2001 — — — 64 7 57
2002 — — — 55 10 45
2003 — — — 72 6 67
2004 — — — 93 11 82
2005 — — — 103 18 85
2006 — — — 119 24 95
2007 — — — 136 27 109
2008 — — — 133 42 91
2009 — — — 77 13 64
2010 — — — 77 15 62
2011 40 35 14 154 50 118
2012 80 45 36 133 45 124
2013 80 45 36 132 45 123
2014 80 45 36 136 45 127
2015 80 78 63 131 25 168
2020 135 70 95 113 25 183
(percent)
2015- 11.0 — 8.6 -2.8 0.0 1.7
2020
Commercial production of polybutadiene elastomers in Central Europe was halted in 1999 and resumed only in mid-2011
when Synthos Kralupy started up its new plant at Kralupy in the Czech Republic. For 2015, total production is estimated
to reach a volume of 63 thousand metric tons, which is 27 thousand metric tons (75%) higher than in 2012. Operating
rates have improved significantly in recent months, from annual levels around 45% in 2014 to a new high level of almost
80% in 2015. Domestic demand for polybutadiene elastomers has exhibited significant growth since 2010, increasing at an
average rate of about 22.1% annually, driven primarily by the developments of the regional tire industry. Regarding
individual countries, Hungary is by far the largest consumer of polybutadiene elastomers, followed by the Czech Republic,
Slovakia, and Poland. Despite the start-up of the Czech production plant, the region has remained a net importer of about
90 thousand metric tons annually in the last five years.
Looking ahead to 2020, domestic demand for polybutadiene elastomers is expected to grow at a much slower pace,
increasing by an average of only about 1.7% annually. Capacities and production levels, on the other hand, are projected to
increase at average rates of 11% and 8.6% respectively, based on the assumption that new production capacity could
potentially be added in Hungary. This could result in a narrowing of the gap between supply and demand in Central
Europe and ultimately reduce the requirement for imports.
Trade
Central Europe is a net importer of polybutadiene elastomers, with a maximum volume of about 109 thousand metric
tons reached in 2007. Despite the start-up of new production capacity in the Czech Republic in 2011, annual net import
volumes have, on average, remained at comparably high levels around 90 thousand metric tons in the last five years as
domestic demand continued to increase. Hungary is by far the largest importer of polybutadiene elastomers in the region,
followed by Poland, the Czech Republic, and Slovakia. The majority of imports are typically supplied by producers in

Western Europe and Russia, with small volumes coming from South Africa and Japan. Exports out of the Czech Republic
and Poland are mostly destined for other Western and Central European markets and, to a smaller extent, for China and
India. This is not expected to change much in the forecast period and Central Europe as a region will likely continue to
import about 90 thousand metric tons of polybutadiene elastomers on a net basis.
CIS and Baltic States

CIS and Baltic States refers to the Commonwealth of Independent States (basically the countries of the former Soviet
Union: Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and
Uzbekistan) as well as the three Baltic States of Estonia, Latvia, and Lithuania.
Producing companies
For 2015, the annual nameplate capacity for polybutadiene elastomers in the CIS and Baltic States region amounts to 475
thousand metric tons, representing about 9.6% of the total global capacity. All of the regional production capacity is
currently located in Russia.
The following table provides an overview of all polybutadiene elastomers producers in the CIS and Baltic States region,
including information about their location and production capacity.
CIS and Baltic States producers of polybutadiene elastomers

Russia
Nizhnekamskneftekhim Nizhnekamsk 50 50 50 Li catalyst
Nizhnekamsk 150 150 150 Nd catalyst
Voronezhsyntezkauchuk Voronezh 110 110 110 Ti catalyst
Voronezh 45 45 45 Nd catalyst, swing plant with sSBR
ZSK Yefremov Yefremov 120 120 120 Swing plant, Ti/Nd catalysts
Total 475 475 475
a. Li = Lithium, Nd = Neodymium, Ti = Titanium, sSBR = solution styrene-buatdiene rubber, PBR = polybutadiene rubber.
Nameplate capacities for polybutadiene elastomers have remained flat at a level of 475 thousand metric tons in the last
five years as the latest changes to the regional capacity base occurred in 2008–09 when Nizhnekamskneftekhim
expanded its production plant at Nizhnekamsk, Russia. With a combined capacity of 200 thousand metric tons,
Nizhnekamskneftekhim is currently the largest producer in the region, followed by Sibur affiliates
Voronezhsynthezkauchuk and ZSK Yefremeov. Given that there are currently neither capacity expansions nor closures
scheduled to take place in the region during the forecast period, this is not expected to change.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in the CIS and Baltic States
region.

CIS and Baltic States supply/demand for polybutadiene elastomers

1990 400 88 350 — 10 340
1995 405 43 172 1 45 128
1996 405 38 155 10 49 116
1997 405 35 143 11 71 83
1998 405 32 130 7 93 44
1999 455 34 155 11 82 84
2000 325 47 152 4 57 98
2001 325 44 144 5 62 87
2002 325 39 128 8 64 73
2003 325 44 142 12 68 86
2004 325 52 170 16 115 70
2005 360 60 218 20 148 89
2006 360 64 229 16 142 103
2007 360 69 250 19 153 115
2008 380 70 267 18 185 100
2009 395 54 215 10 134 91
2010 475 58 274 6 165 115
2011 475 64 303 19 201 121
2012 475 63 301 11 215 97
2013 475 65 310 4 200 114
2014 475 65 311 7 200 117
2015 475 65 309 7 200 116
2020 475 75 358 7 243 123
(percent)
2015- 0.0 — 3.0 1.7 3.9 1.2
2020
In the CIS and Baltic States region, production of polybutadiene elastomers is concentrated solely in Russia and is
estimated to reach a volume of about 309 thousand metric tons in 2015. While this is almost unchanged from 2012, it is
about 35 thousand metric tons (roughly 13%) higher than the output in 2010, reflecting an average growth rate of 2.5%
annually. As the nameplate capacity has not changed since 2009, the higher production volumes also resulted in slightly
improved operating rates in the mid-60% range. With the exception of 2012, domestic demand has mostly remained flat in
the last five years, at average levels around 110–120 thousand metric tons, which resulted in a higher availability of
material for the export markets.
Looking ahead, actual consumption of polybutadiene elastomers in the CIS and Baltic States region is expected to increase
by about 1.2% annually in the forecast period. Production levels are also projected to grow at comparably healthy annual
average rates of about 3%, which will be reflected in improved operating rates as well as increasing net export volumes.
Both production and consumption will continue to be concentrated primarily in Russia.
Trade
The CIS and Baltic States, Russia in particular, is a large net exporter of polybutadiene elastomers. Average annual net
export volumes have increased significantly in the last five to ten years, which has mainly been driven by the expansion of
Russian capacities combined with slightly increasing or almost stagnating domestic demand. Russia is one of the biggest
suppliers of polybutadiene elastomers to the global market, with the largest volumes going to Western and Central
Europe, China, Brazil, South Korea, and Turkey. The import figures shown in the Salient Statistics table of the previous
section also include trade between Russia and other countries in the region, as well as small volumes coming from
Thailand.

While trade flows are not expected to change much in the forecast period, the current expectation is that Russia will
become an even larger net exporter of polybutadiene elastomers, with the total regional annual net export volume
projected to increase from about 193 thousand metric tons in 2015 to about 235 thousand metric tons in 2020.
Middle East
The Middle East region includes the countries of Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi
Arabia, Syria, Turkey, and the United Arab Emirates (UAE).
Producing companies
For 2015, the annual nameplate capacity for polybutadiene elastomers in the Middle East amounts to 25 thousand metric
tons, representing about 0.5% of the total global capacity, making it the smallest producing region in the world. All of the
regional production capacity is currently located in Iran.
The following table provides an overview of all polybutadiene elastomer producers in the Middle East, including
Middle Eastern producers of polybutadiene elastomers

Iran
Arak PC Arak 25 25 25
Saudi Arabia
SABIC Al Jubail 0 0 50 Goodyear license, Nd catalyst, start-up planned
in mid-2018
Total 25 25 75
a. Nd = Neodymium.
At present, Arak Petrochemicals is the only producer of polybutadiene elastomers in the Middle East region, operating a
25 thousand-metric-ton unit at Arak in Iran. In 2012, SABIC and ExxonMobil announced a plan to construct a world-scale
elastomers facility at Al Jubail in Saudi Arabia. The new facility will be located at and integrated with the Al- Jubail
Petrochemical Company (Kemya) site location. The slate of products will include halobutyl rubber, EPDM, SBR, PBR,
thermoplastic elastomers, and carbon black. The combined capacity for all products is assumed to be roughly 400
thousand metric tons, with PBR capacity estimated at 50 thousand metric tons. Actual production of PBR is currently
expected to begin in the middle of 2018.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in the Middle East.

Middle Eastern supply/demand for polybutadiene elastomers

1990 14 71 10 6 — 16
1995 45 78 35 9 7 37
1996 50 77 38 6 13 31
1997 55 73 40 12 17 35
1998 55 80 44 13 13 44
1999 55 76 42 31 36 37
2000 55 82 45 21 16 50
2001 55 95 52 20 12 59
2002 55 92 51 21 10 61
2003 55 69 38 18 9 46
2004 55 71 39 22 8 54
2005 55 76 42 27 5 64
2006 55 76 42 34 2 74
2007 43 79 34 37 3 68
2008 25 96 24 35 6 53
2009 25 89 22 25 — 47
2010 25 84 21 27 — 48
2011 25 80 20 39 — 59
2012 25 80 20 33 — 53
2013 25 75 19 36 — 55
2014 25 75 19 38 — 57
2015 25 72 18 40 — 58
2020 100 81 81 40 55 66
(percent)
2015- 32.0 — 35.1 0.1 — 2.7
2020
At present, polybutadiene elastomers in the Middle East are produced only in Iran, in comparatively small volumes. For
2015, production is estimated to reach a level of 18 thousand metric tons. This is about 2 metric tons less than in 2012 and
about 3 thousand metric tons lower than the output in 2010, reflecting an average annual decline rate of about 3% for the
five year period. As the nameplate capacity has remained unchanged at about 25 thousand metric tons since 2008,
operating rating rates declined from 84% in 2010 to 72% in 2015; the annual average is now slightly below 80%. Domestic
demand, on the other hand, has continued to grow at comparably healthy rates of about 3.9% in the last five years, which
ultimately resulted in increasing volumes of imported material. In regards to individual countries in the region, Turkey
and Iran are by far the largest consumers of polybutadiene elastomers and account for about 87% of the total regional
consumption when combined, while Saudi Arabia makes up for the remainder.
In the forecast period to 2020, domestic demand is expected to grow at a slightly slower pace than seen in recent years,
increasing by an average of only about 2.7% annually. Following the 2018 start-up of the new production plant in Saudi
Arabia, nameplate capacities and production levels are forecast to expand by more than 30% annually; however, most of
the new material is destined for the export market. This is also reflected in the trade figures, which indicated that the
region as a whole will move to a small net exporting position by the end of 2020.
Trade
Because of its comparably small nameplate capacity base, the Middle East has been a net importer of polybutadiene
elastomers for many years. The annual net import requirement, which has on average been in the order of about 32
thousand metric tons during the last decade, is estimated to reach a new high level of about 40 thousand metric tons in
2015. This is equal to almost 70% of the total domestic demand. Turkey is by far the largest importer of polybutadiene

elastomers in the region, followed at some distance by Saudi Arabia and Iran. Most of the imported material comes from
producers in Russia, Western Europe, South Korea, Japan, and Taiwan.
Looking ahead, the planned start-up of new export-oriented production capacity in Saudi Arabia, currently scheduled for
2018, will not only result in some changes to intra- and interregional trade flows, but will also move the region as a whole
from a net importing to a net exporting position by 2020. Polybutadiene elastomers exports out of Saudi Arabia are
assumed to be mainly destined for markets in Western Europe, the United States, and the Middle East (Iran and Turkey).
Africa
Africa includes the countries of Algeria, Angola, Cameroon, Chad, Egypt, Ethiopia, Gabon, Ghana, Guinea, Kenya, Libya,
Morocco, Mozambique, Nigeria, Sierra Leone, South Africa, Swaziland, Tanzania, Tunisia, Zaire, and Zimbabwe.
Producing companies
The following table provides an overview of all polybutadiene elastomers producers in Africa, including information about
their location and production capacity.
African producers of polybutadiene elastomers

South Africa
Karbochem Newcastle 17 17 17 Low cis (Li) PBR, swing plant with sSBR/IR
Newcastle 30 30 30 High cis (Nd) PBR
Total 47 47 47
a. Li = Lithium, Nd = Neodymium, sSBR = solution styrene-butadiene rubber, IR = isoprene rubber.
As of 2015, Karbochem remains the only producer of polybutadiene elastomers in the region. The company operates a
multipurpose plant with two production lines at its Newcastle site in South Africa; the combined capacity is about 47
thousand metric tons. Most of the output is used domestically for the production of tires, industrial goods, footwear, and
sporting goods. There are no capacity expansion or closures expected to occur in the region during the forecast period.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in Africa.

African supply/demand for polybutadiene elastomers

1990 18 66 12 — — 12
1995 25 88 22 3 3 22
1996 42 69 29 4 4 29
1997 52 54 28 7 19 16
1998 52 50 26 4 5 25
1999 52 53 28 6 7 27
2000 52 53 28 7 12 23
2001 52 54 28 7 21 14
2002 52 51 27 6 15 17
2003 52 50 26 6 17 15
2004 52 85 44 8 19 33
2005 52 81 42 15 31 26
2006 52 46 24 6 19 11
2007 52 63 33 6 25 14
2008 48 73 35 5 21 19
2009 47 28 13 4 12 5
2010 47 57 27 5 10 22
2011 47 85 40 3 3 40
2012 47 84 40 5 8 36
2013 47 83 39 5 7 37
2014 47 85 40 5 7 37
2015 47 85 40 5 7 38
2020 47 82 39 5 3 40
(percent)
2015- 0.0 — -0.7 0.2 -15.6 1.3
2020
For 2015, total production of polybutadiene elastomers remains concentrated in South Africa, and is estimated to reach 40
thousand metric tons. While this is basically unchanged from 2012, it is about 13 thousand metric tons higher than the
output registered in 2010, translating into an average annual growth rate of about 8.2%. Nameplate capacities have
remained flat in the same time period, resulting in an improvement in average operating rates from a level below 60% in
2010 to the low 80% range. Domestic demand for polybutadiene elastomers has exhibited considerably large growth of
about 11.8% annually, on average, in the last five years; this reduced the availability of material for the export market and
brought the region as a whole closer to a balanced trade position. In the forecast period, domestic demand is expected to
slow and increase at an average annual rate of only 1.3%, while production levels are forecast to decrease slightly by about
0.7%. As a result, Africa will likely become a small net importer of polybutadiene elastomers in the next couple of years.
Trade
Africa is a small net exporter of polybutadiene elastomers. While annual net export volumes have historically reached
levels between 10 thousand and 20 thousand metric tons, they have dropped significantly in recent years as domestic
demand increased, and the region is currently very close to balance. Exports are typically destined for the Western and
Central European markets, the United States, and Turkey, while imports usually come from the United States and
Western Europe. In regards to individual countries, trade flows are mostly in and out of South Africa, the only producer
and largest consumer in the region. The current outlook is that export volumes will decrease further in the forecast
period, which will ultimately shift the region to a small net importing position of about 2 thousand metric tons, the same
volume that is assumed to be exported in 2015, on a net basis.

Indian Subcontinent
The Indian Subcontinent region comprises India, Pakistan, Bangladesh, and other countries such as Sri Lanka.
Producing companies
For 2015, the annual nameplate capacity for polybutadiene elastomers in the Indian Subcontinent region amounts to 105
thousand metric tons, which represents about 2.1% of the total global capacity. All of the regional production capacity is
located in India.
The following table provides an overview of all polybutadiene elastomers producers in the Indian Subcontinent region,
including information about their location and production capacity.
Indian Subcontinent producers of polybutadiene elastomers

India
Reliance Industries Jamnagar, Guj 0 30 30 JSR Technology, swing plant, Ni/Nd calatysts,
start-up in early 2014
Vadodara, Guj 35 35 35 Cocatalyst
Vadodara, Guj 40 40 40 Ni catalyst
Total 75 105 105
a. Ni = Nickel, Nd = Neodymium, Co = Cobalt.
Reliance Industries is currently the only producer of polybutadiene elastomers in the region. Following the start-up of a
new production unit at Jamnagar in early 2014, which increased the total production capacity by 30 thousand metric tons,
the company now operates a combined capacity of 105 thousand metric tons at its two production sites. While not listed
in the producers tables above, the current supply and demand outlook assumes that another 100 thousand metric tons of
new capacity could potentially be added in India during the forecast period.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in the Indian Subcontinent
region.

Indian Subcontinent supply/demand for polybutadiene elastomers

1990 20 75 15 4 — 19
1995 20 105 21 16 — 37
1996 50 32 16 24 — 40
1997 50 68 34 20 — 54
1998 50 74 37 15 0 52
1999 50 74 37 15 — 52
2000 50 82 41 25 — 66
2001 50 90 45 17 — 62
2002 50 92 46 20 — 66
2003 50 92 46 21 — 67
2004 55 91 50 27 — 77
2005 55 95 52 22 7 67
2006 55 95 52 25 6 71
2007 70 93 65 32 6 91
2008 75 84 63 34 — 97
2009 75 80 60 33 — 93
2010 75 85 64 20 — 84
2011 75 83 63 65 — 128
2012 75 82 61 65 — 127
2013 75 93 70 45 — 115
2014 105 78 82 45 — 127
2015 105 81 85 59 — 144
2020 205 69 141 46 — 186
(percent)
2015- 14.3 — 10.6 -4.8 — 5.4
2020
For 2015, production of polybutadiene elastomers is estimated to reach 85 thousand metric tons. This is about 24
thousand metric tons (39%) higher than in 2012 and has been supported by the start-up of new production capacity in
India. Operating rates have been in the mid-80% range, which is slightly lower than historical but not unusual considering
the recent expansion of the nameplate capacity base. Since 2010, production levels have increased at an average rate of
5.9%, compared with about 11.2% of domestic demand growth seen in the same time period. This has spurred an increase
in imports to average annual volumes around 50–60 thousand metric tons. Regional consumption of polybutadiene
elastomers is concentrated in India where it has been increasing significantly in recent years, especially in newer
generation high-performance tires. In India, domestic demand growth has been and continues to be driven by
developments in the automotive sector, increasing car sales, and nontire applications such as conveyor belts and rubber
sheets.
In the forecast period, actual consumption of polybutadiene elastomers will grow at a slightly slower pace than seen in
recent years, with average annual growth rates projected to be 5.4%. Although nothing has officially been announced yet,
the current outlook includes the assumption that 100 thousand metric tons of new production capacity could be added in
India by 2018–19 to meet the country’s increasing demand and reduce the requirement for imports in the long term.
Trade
The Indian Subcontinent region, and India in particular, has been a net importer of polybutadiene elastomers for many
years, as domestic demand is higher than local supply. In the last five years, the average annual net requirement has
amounted to about 50 thousand metric tons, reaching a maximum level of about 65 thousand metric tons in 2011 and
2012. The majority of imports typically come from South Korea but producers located in Central and Western Europe, the
United States, Russia, and Taiwan also supply material to the Indian market. Even though nameplate capacities and

production levels for polybutadiene elastomers in India are expected to increase significantly during the forecast period,
the Indian Subcontinent region will likely remain a net importer of 40–50 thousand metric tons in the next couple of
years.
Northeast Asia
Northeast Asia includes the countries of China, Hong Kong, Japan, North Korea, Taiwan, and South Korea. Currently, both
production and consumption of polybutadiene rubber is solely concentrated in China, Japan, Taiwan, and South Korea.
Overview
Capacity
For 2015, the average annual nameplate capacity of polybutadiene rubber in Northeast Asia amounts to about 2.7 million
metric tons, representing 55.5% of the total global capacity and making it the largest producing region in the world. With
a capacity share of about 63%, China is by far the largest market in the region, followed by South Korea (19%) and Japan
(13%). Taiwan makes up for the remaining 5%. Due to the large size and importance of this region, each of the four major
producing and consuming countries will be discussed in an individual section of this report.

Based on the analysis of annual averaged capacity data for 2015 under consideration of shareholder relationships, the
China Petroleum Corporation (Sinopec) remains by far the largest producer of polybutadiene rubber in Northeast Asia,
followed with some distance by the Kumho Group and the China National Petroleum Corporation (CNPC). Even though
some new production capacity will be added in the region during the forecast period, these three companies are likely to
remain at the top of the ranking.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in Northeast Asia.

Northeast Asian supply/demand for polybutadiene elastomers

1990 443 109 485 42 120 407
1995 630 109 686 67 175 579
1996 675 114 772 89 177 684
1997 695 115 800 127 227 699
1998 830 97 805 117 228 694
1999 824 105 866 156 264 758
2000 922 96 881 153 274 761
2001 923 90 830 142 229 742
2002 932 87 813 192 252 752
2003 997 90 898 194 255 837
2004 1,027 94 965 220 291 894
2005 1,057 89 944 233 271 905
2006 1,178 89 1,049 268 284 1,033
2007 1,209 94 1,133 329 356 1,106
2008 1,273 90 1,144 282 315 1,111
2009 1,382 86 1,192 369 384 1,177
2010 1,462 86 1,252 356 348 1,260
2011 1,753 83 1,456 310 448 1,317
2012 1,977 83 1,639 294 478 1,455
2013 2,409 72 1,726 305 500 1,531
2014 2,679 61 1,637 291 502 1,426
2015 2,742 60 1,658 280 474 1,463
2020 3,047 61 1,866 345 380 1,832
(percent)
2015- 2.1 — 2.4 4.3 -4.3 4.6
2020
For 2015, the combined production of polybutadiene elastomers in Northeast Asia is estimated to reach a volume of more
than 1.6 million metric tons, only slightly higher than the output seen in 2012. Compared with 2010, regional supply
increased by about 406 thousand metric tons, or 32%, which has mainly been driven by capacity expansions in China and
South Korea and translating to an average annual growth rate of more than 13%. At the same time, both production and
consumption levels have increased at a much slower pace, 5.8% and 3%, respectively. This is reflected in lower operating
rates, which dropped from the mid-80% range to levels closer to 60% in recent years, but also in higher net export
volumes of up to about 200 thousand metric tons on average. Looking at individual countries, China remains by far the
largest consumer of polybutadiene elastomers in the region and currently accounts for about 68% of the total domestic
demand.
While the regional capacity base is projected to increase further in the forecast period, it will be at a much slower pace of
about 2.1% annually; all of this will be seen in China. Production levels are expected to grow at similar rates, while
domestic demand is forecast to pick up in the next five years and expand by about 4.6% on average. This will ultimately
reduce the amount of material that is available for exports, and move the region closer to a balanced trade position for
polybutadiene elastomers.
Trade
Northeast Asia is a net exporter of polybutadiene elastomers, with a maximum net export volume of about 211 thousand
metric tons in 2014. Regarding individual countries in the region, China is a net importer, and South Korea, Japan, and
Taiwan are all net exporters; about 62% of the total traded volume in 2015 is moved intraregionally. Additional required
imports come from Russia, the United States, and Western and Central Europe, while interregional exports are destined
mainly to Indonesia, Thailand, Vietnam, India, Western Europe, Turkey, and the United States.

The current outlook is that the average annual net export volume will decline significantly in the next five years,
ultimately moving the region closer to a balanced position. This will be a result of decreasing exports out of South Korea
and Japan, caused by healthy domestic demand, combined with increasing imports in China that are driven by new
capacities running at low operating rates, and higher pressure from export-oriented capacities in the Middle East and
Southeast Asia.
China
Producing companies
The following table provides an overview of all polybutadiene elastomers producers in China, including information about
Chinese producers of polybutadiene elastomers

Baling PC Yueyang, Hunan 70 70 70 Multipurpose plant, high cis PBR, butyllithium
catalyst
Beijing Yanshan PC Beijing 5 30 30 Start-up in late 2012
Dynasol Synthetic Panjin, Liaoning 0 11 17 50 kt sSBR, 50 kt SBS/LCBR/sSBR, start-up in
May 2015
Formosa Rubber Ningbo, Zhejiang 0 0 43 Nd catalyst, start-up planned in 2017
Ningbo, Zhejiang 0 0 43 Nd catalyst, start-up planned in 2019
Fujian Meizhouwan CA Meizhouwan, Fujian 50 50 50 Start-up in April 2011
Haopu New Material Yantai, Shandong 0 15 60 Start-up originally planned in Q4 2015, possi-
bly delayed to Q2 2016
Jinzhou PC Jinzhou, Liaoning 30 30 30 High cis (Nd) PBR
Jiutai Energy (IM) Erdos, Inner Mongolia 0 0 80 Ni HCBR, start-up planned in Q2 2016
Liaoning Shengyou Panjin, Liaoning 0 0 80 Start-up planned in Q1 2016
PetroChina Daqing PC Daqing, Heilongjiang 80 160 160 Expansion in March 2013
PetroChina Dushanzi Kelemayi, Xinjiang 30 30 30 Ni catalyst, PBR/SBR swing plant
Karamay, Xinjiang 30 30 30 LCBR
Qilu PC Zibo, Shandong 40 60 60 Multipurpose plant with SBR
Qixiang Tengda Chem. Zibo, Shandong 0 50 50 Start-up in June 2013
Shandong Huamao Dongying, Shandong 50 100 100 Start-up in mid 2012
Shandong Wanda Dongying, Shandong 35 50 50 Start-up in 2011, expansion in 2012
Shandong Yuhuang Dongming, Shandong 147 160 160 Start-up in 2010, expansion in 2012
Sichuan PC Chengdu, Sichuan 0 150 150 Start-up in March 2014
Sinopec Gao Qiao Caojing, Shanghai 58 58 58 100 kt PBR/sSBR swing plant
Gaoqiao, Shanghai 120 120 120 High cis PBR
Sinopec Maoming PC Maoming, Guangdong 0 100 100 Start-up in February 2013
TSRC Ube (Nantong) Nantong, Jiangsu 72 72 72 Joint venture of TSRC and Ube, expansion in
mid 2011
Xinjiang Land Fine Xinjiang 50 50 50 Start-up in mid 2011
Yangzi PC/GPRO Nanjing, Jiangsu 0 100 100 Start-up in late May 2013
Yanshan PC Fangshan, Beijing 120 120 120 Multipurpose plant sSBR/high cis PBR
Zhejiang Transfar Hangzhou, Zhejiang 0 100 100 Start-up in May 2013
Zhenjiang Chimei Chemical Zhenjiang, Jiangsu 0 12 20 LCBR/sSBR swing plant, start-up in Jun 2015
Total 987 1,728 2,033
a. Li = Lithium, Co = Cobalt, Ni = Nickel, LCBR = low cis polybutadiene rubber, HCBR = high cis polybutadiene rubber, sSBR = solution styrene-butadiene rubber, SBS = styrene-butadiene-styrene.
As of 2015, the annual nameplate capacity of polybutadiene elastomers in China amounts to about 1.7 million metric tons.
This is 741 thousand metric tons (75%) higher than in 2012. When all plant start-ups and expansions since the beginning
of 2012 are taken into account with full capacity, the actual capacity increase adds up to almost 1 million metric tons.
Some details about the most recent capacity changes are given below:

• In March 2012, Shandong Yuhuang completed an expansion at its Dongming, Shandong production plant, increasing
the total output by 80 thousand metric tons and ultimately doubling the originally installed capacity.
• In July 2012, the Shandong Huamao New Material Company commissioned a new 100 thousand metric ton PBR unit at
the Dongying, Shandong site.
• In November 2012, the Beijing Yanshan Petrochemical Company began production at its new PBR unit at Beijing. The
plant has a capacity of 30 thousand metric tons.
• In February 2013, Sinopec’s Maoming Petrochemical started up a new PBR plant with a capacity of 100 thousand metric
tons at Maoming, Guangdong.
• At the end of February 2013, the Qilu Petrochemical Company completed an expansion at its Zibo, Shandong plant,
which increased the total output of PBR by 20 thousand metric tons.
• In March 2013, PetroChina’s Daqing Petrochemical expanded its PBR production unit at Daqing, Heilongjiang by 80
thousand metric tons, an increase of 100% compared to originally installed capacity.
• In May 2013, Zhejiang Transfar put a new PBR plant located at Hangzhou, Zhejiang into operation. The unit can produce
up to 100 thousand metric tons of PBR.
• Also in May 2013, the Yangzi PC/GPRO (Nanjing) Rubber Company started production at its new 100 metric ton unit
located at Nanjing, Jiangsu. The company is a joint venture of the Yangzi Petrochemical Company and Jiangsu GPRO.
• In June 2013, the Zibo Qixiang Tengda Chemical Company commissioned a new 50 thousand metric ton PBR unit at
Zibo, Shandong.
• In October 2013, the Shandong Wanda Chemical Company completed an expansion at its Dongying, Shandong PBR
unit, which increased the capacity by 20 thousand metric tons. The unit was originally started up in 2011.
• In March 2014, the Sichuan Petrochemical Company completed construction of its PBR unit at Chengdu, Jiangsu,
adding 150 thousand metric tons of new capacity.
• In May 2015, the Liaoning North Dynasol Synthetic Rubber Company (Dynasol Synthetic) started up a new synthetic
rubber plant at Panjin, Liaoning with capacity to produce 17 thousand metric tons of low-cis PBR. The company is a
50/50 joint venture of Dynasol and Xing’An.
• In June 2015, the Zhenjiang Chimei Chemical Company began operations at its 20 thousand metric ton plant at
Zhenjiang, Jiangsu. The unit has the capability to produce low-cis PBR and solution SBR.
• In October 2015, the Haopu New Material Science and Technology Company had planned to commission its new 60
thousand metric ton PBR unit at Yantai, Shandong. However, the project has been delayed and given the current weak
market, it might not come onstream before the second quarter of 2016.
Based on annual averaged capacity data for 2015, the China Petroleum Corporation (Sinopec) remains by far the largest
producer of polybutadiene elastomers in China, accounting for a combined capacity of more than 600 thousand metric
tons through its subsidiaries. In the ranking of the top producers, it is followed with some distance by the China National
Petroleum Corporation (CNPC) and Shandong Yuhuang.
Looking ahead at the developments until 2020, China’s capacity base is expected to increase further, exceeding 2 million
metric tons. Some details about new capacity projects that are scheduled to be realized within in the next couple of years
are given below:
• The Liaoning Shengyou Rubber Science & Technology Company is building a new 80 thousand metric ton PBR
production unit at Panjin, Lianoning. The plant is assumed to be operational in early 2016.

• At Erdos, Inner Mongolia, a new 80 thousand metric ton PBR plant, which will be operated by the Jiutai Energy (Inner
Mongolia) Company, is already under construction and expected to be completed in the second quarter of 2016.
• Formosa Rubber plans to build two 43 thousand metric ton units at Ningbo, Zhejiang. The first is expected to come
onstream in 2017, the second in 2019.
Salient Statistics
The following table presents the supply and demand balance for polybutadiene elastomers in China:
Chinese supply/demand for polybutadiene elastomers

1990 105 113 119 3 — 122
1995 175 129 226 7 0 233
1996 200 133 265 12 — 277
1997 200 139 278 22 7 293
1998 270 109 293 17 8 302
1999 255 122 312 44 19 337
2000 330 101 334 48 29 353
2001 330 103 341 47 24 364
2002 335 93 313 64 33 344
2003 400 92 366 89 23 432
2004 430 92 397 157 38 517
2005 460 87 400 165 41 524
2006 484 94 455 202 37 620
2007 518 94 485 267 35 717
2008 531 95 503 205 14 694
2009 598 92 550 280 16 814
2010 678 89 601 291 25 868
2011 789 86 680 230 40 870
2012 987 84 826 214 34 1,006
2013 1,404 63 890 225 28 1,087
2014 1,665 48 800 206 24 982
2015 1,728 48 824 191 18 996
2020 2,033 52 1,054 276 15 1,315
(percent)
2015- 3.3 — 5.1 7.7 -3.7 5.7
2020
In 2015, Chinese production of polybutadiene elastomers is estimated at about 824 thousand metric tons, which is almost
unchanged from the volume produced in 2012. Since 2010, production in China has increased at an average annual rate of
about 6.5%, compared to more than 20% of growth registered for the nameplate capacity base in the same time period. As
a result, operating rates dropped significantly, from historical levels around 90%, to levels of less than 50% in recent years.
Even though domestic demand for polybutadiene elastomers has grown at a much slower pace during the last 5 years and
rebounded somewhat from the new highs seen in 2012 and 2013, it is still exceeding the local supply. Therefore, China
continues to be a comparably large net importer to meet the requirements of its automotive industry.
While new production capacities continue to be brought on stream in China, the overall increase will be much smaller
than seen in recent years, and annual growth in the forecast period will only be around 3.3% on average. Production and
consumption are expected to grow in line with each other, at 5.1% and 5.7%, respectively. This will not be enough to close

the gap between supply and demand, but will result in a continuation of imports combined with persisting low operating
rates in the 50% range.
Trade
On a net basis, China is the largest importer of polybutadiene elastomers in the world. Average annual net import volumes
have been around 200 thousand metric tons in the last decade, with a maximum level of almost 270 thousand metric tons
reached in 2010. Major suppliers for Chinese imports include Japan, South Korea, Russia, Taiwan, the United States, and
Western and Central Europe. Export volumes are comparably small and typically go to the United States, Western Europe,
and Southeast Asia.
Despite the large amount of new capacity that has been and continues to be brought on stream in China, the country is
expected to remain a considerably large net importer of polybutadiene elastomers in the forecast period. Average annual
net import volumes are currently projected to increase further to reach levels of up to 261 thousand metric tons in the
next 5 years. There will also be some shift in trade flows as new export-oriented producers in Singapore and Saudi Arabia
add material to the market.
Japan
Producing companies
The following table provides an overview of all polybutadiene elastomers producers in Japan, including information about
Japanese producers of polybutadiene elastomers

Asahi Kasei Chemical Kawasaki, Kanagawa 75 75 75 Li catalyst
Japan Elastomer Oita 20 20 20 Multipurpose plant with SBR/SBS, low cis (Li)
PBR
JSR Chiba 45 45 45 Also produces 1,2-polybutadiene
Chiba 27 27 27
Nippon Zeon Tokuyama, Yamaguchi 65 65 65 Multipurpose plant with solution SBR, Co/Li cat-
alysts
Ube Industries Chiba 101 125 125 High cis (Co) PBR, expansion in 2012/2013
Total 333 357 357
a. Li = Lithium, Co = Cobalt, sSBR = solution styrene-butadiene rubber.
As of 2015, the annual nameplate capacity of polybutadiene elastomers in Japan amounts to 357 thousand metric tons.
This is about 24 thousand metric tons higher than in 2012 and can solely be attributed to the expansion of the Ube
Industries plant located at Chiba. The expansion of the plant, which previously had a capacity of 95 thousand metric tons,
was carried out in two stages; 15 thousand metric tons were added in the summer of 2012 and another 15 thousand metric
tons were added at the end of 2013. Ube Industries is the largest producer of polybutadiene elastomers in Japan, followed
by Asahi Kasei Chemicals, which operates the plant at Kawasaki and has a 75% share in the Japan Elastomer business. As
there are currently no capacity expansions or closures scheduled to take place in Japan during the forecast period, this is
not expected to change.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in Japan.

Japanese supply/demand for polybutadiene elastomers

1990 228 115 262 3 78 187
1995 280 111 312 11 114 210
1996 280 117 327 9 98 238
1997 280 113 316 18 112 222
1998 295 97 287 16 103 199
1999 304 101 308 12 121 200
2000 327 92 301 19 116 203
2001 327 82 269 21 104 185
2002 327 84 274 23 98 198
2003 327 88 287 18 91 214
2004 327 87 283 24 90 217
2005 327 88 289 35 75 249
2006 327 88 289 32 80 241
2007 327 90 294 34 84 244
2008 327 89 290 37 76 252
2009 327 80 260 25 108 177
2010 327 90 294 20 111 203
2011 327 84 274 43 91 225
2012 333 86 285 35 102 218
2013 348 86 300 30 125 205
2014 357 83 297 36 120 213
2015 357 84 300 32 138 194
2020 357 84 300 25 125 200
(percent)
2015- 0.0 — 0.0 -4.8 -2.0 0.6
2020
Japanese production of polybutadiene elastomers is estimated to be around 300 thousand metric tons in 2015, compared
to 285 thousand metric tons produced in 2012. Output has only increased by about 6 thousand metric tons since 2010,
translating to an average annual growth of about 0.4%. Capacities, on the other hand, have registered a small increase in
the same time period, following the expansion of the Ube Industries plant at Chiba; this is reflected in slightly lower
operating rates in the mid 80% range. However, domestic demand for polybutadiene elastomers in Japan, which has on
average been around 213 thousand metric tons since 2010, slightly lower than a decade ago, is assumed to have dropped
somewhat in 2015, leaving more material for the export market.
The current outlook is that Japanese capacity and production of polybutadiene elastomers will remain more or less flat
during the forecast period. Domestic demand is expected to increase by about 0.6% annually at the same time. This will
ultimately result in slightly lower net export volumes.
Trade
Japan has been a net exporter of polybutadiene elastomers for many years. Annual levels, which have on average been
close to about 80 thousand metric tons for the last 20 years, dropped as low as 39 thousand metric tons in 2008 and
recovered to around 106 thousand metric tons in 2015. Exports out of Japan are mainly destined for China, Taiwan,
Western Europe, and India, while imported material mostly comes from South Korea and Taiwan. The current outlook for
the forecast period is for both export and import volumes to decline slightly compared to 2015 estimates. Overall, Japan
will likely remain a net exporter of about 100 thousand metric tons.

South Korea
Producing companies
The following table provides an overview of all polybutadiene elastomer producers in South Korea, including information
about their location and production capacity.
South Korean producers of polybutadiene elastomers

Kumho Petrochemical Yeosu, Jeollanam-do 342 342 342 Multipurpose plant, Ni/Li/Nd catalysts
LG Chem Daesan 180 180 180 Multipurpose plant with solution SBR
Total 522 522 522
a. Li = Lithium, Co = Cobalt, Ni = Nickel, SBR = styrene-butadiene rubber.
As of 2015, the annual nameplate capacity of polybutadiene elastomers amounts to about 522 thousand metric tons,
which is unchanged from 2012. Compared to 2010, South Korea’s total production capacity is about 200 thousand metric
tons (62%), higher as both Kumho Petrochemical and LG Chemicals expanded their existing multipurpose plants at Yeosu
and Daesan in 2010–11. Kumho Petrochemical remains the largest producer of polybutadiene elastomers in South Korea,
followed at some distance by LG Chemical. While not reflected in the producers table above, the current supply and
demand outlook assumes that another 50 thousand metric tons of additional polybutadiene rubber capacity could
potentially be added in the middle of the forecast period.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in South Korea.

South Korean supply/demand for polybutadiene elastomers

1990 70 89 62 17 21 58
1995 125 78 97 7 36 68
1996 145 89 129 5 51 83
1997 165 92 151 8 68 91
1998 165 91 150 8 77 81
1999 165 101 167 17 81 103
2000 165 102 168 15 89 93
2001 165 86 142 11 68 85
2002 165 88 146 14 77 83
2003 165 103 170 12 94 88
2004 165 124 204 13 117 100
2005 165 113 187 12 111 88
2006 262 90 235 13 131 117
2007 259 108 280 11 195 96
2008 310 89 276 23 168 131
2009 322 95 307 23 201 129
2010 322 87 281 23 160 144
2011 502 84 422 19 265 176
2012 522 85 443 22 282 183
2013 522 85 446 19 285 180
2014 522 86 448 19 280 187
2015 522 85 444 19 240 223
2020 522 79 412 19 170 261
(percent)
2015- 0.0 — -1.5 0.0 -6.7 3.2
2020
For 2015, total production of polybutadiene elastomers is estimated to be around 444 thousand metric tons, which is
basically unchanged from 2012. Since 2010, volumes have increased by 163 thousand metric tons, reflecting an average
annual growth of almost 10%. This has mainly been driven by the considerably large increase in nameplate capacities at
the two existing production sites. While operating rates remained at comparably high levels in the mid 80% range, they
are still slightly lower than those historically seen. Domestic demand for polybutadiene elastomers has also exhibited
large growth in the same period, as measured by the percentage changed, but it still only accounts for about 40–50% of
the total production. This leaves considerably large amounts of surplus material for the export market; average annual
volumes have been around 180 thousand metric tons in the last 5 years.
The current expectation is for South Korean production levels to decrease slightly in the forecast period, at an average rate
of about 1.5% annually. This will mostly be driven by a projected loss in export volumes due to increasing competition
from new capacities built elsewhere, especially in China. Domestic demand, on the other hand, is expected to increase
further, though at a somewhat slower pace (3.2% annually) in the next 5 years.
Trade
During the last three to four years, South Korea has become the largest exporter of polybutadiene elastomers in the world,
ahead of Russia and the United States, and imports about 40–50% of its local production. The total net export volume has
reached a maximum level of almost 270 thousand metric tons in 2013 but decreased somewhat in 2015, to about 221
thousand metric tons. Major destinations for exported material typically include China, Indonesia, Vietnam, Thailand,
India, and Japan, but also Western Europe and Turkey. Import volumes are comparably small and mainly come from
Russia, Japan, or the United States.

Looking ahead, polybutadiene elastomers exports out of South Korea are projected to decrease to a level of roughly 150
thousand metric tons by the end of the forecast period. This will mainly be driven by increasing pressure in the export
market, due to new capacity start-ups in Saudi Arabia and Singapore, as well as a continuation of comparably healthy
domestic demand growth.
Taiwan
Producing companies
The following table provides an overview of all polybutadiene elastomer producers in Taiwan, including information
about their location and production capacity.
Taiwanese producers of polybutadiene elastomers

Chi Mei Tainan 80 80 80 Multipurpose plant, low cis (Li) and high cis (Nd)
PBR
TSRC Ta Sheh, Kaohsiung 55 55 55 Low cis (Li) and high cis (Co) PBR
Total 135 135 135
a. Li = Lithium, Co = Cobalt, Nd = Neodymium.
As of 2015, the annual nameplate capacity for polybutadiene elastomers in Taiwan is 135 thousand metric tons, which is
unchanged from 2012. The last change to the capacity base occurred in 2009 when Chi Mei expanded its multipurpose
plant at Tainan by 30 thousand metric tons. As a result, the company surpassed its only other local competitor, the Taiwan
Synthetic Rubber Corporation (TSRC), to become the largest producer in the country. No capacity changes are currently
expected to occur in Taiwan during the forecast period.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in Taiwan.

Taiwanese supply/demand for polybutadiene elastomers

1990 40 104 42 13 21 34
1995 50 103 51 19 25 45
1996 50 102 51 24 28 47
1997 50 109 55 23 38 40
1998 100 75 75 20 39 56
1999 100 79 79 17 43 53
2000 100 79 79 18 40 57
2001 101 77 78 19 33 64
2002 105 76 80 27 44 63
2003 105 71 74 25 47 53
2004 105 77 81 26 46 61
2005 105 64 68 21 44 45
2006 105 67 70 21 36 55
2007 105 70 74 17 42 49
2008 105 72 75 17 57 35
2009 135 56 75 15 59 31
2010 135 56 75 22 52 45
2011 135 59 80 18 52 46
2012 135 63 85 23 60 48
2013 135 67 90 31 62 59
2014 135 68 92 30 78 44
2015 135 67 90 38 78 50
2020 135 74 100 25 70 55
(percent)
2015- 0.0 — 2.1 -8.0 -2.1 1.8
2020
For 2015, production of polybutadiene elastomers is estimated to reach a volume of 90 thousand metric tons, which is
about 5 thousand metric tons (6%) more than in 2012. Compared with 2010 this is an increase of 15 thousand metric tons,
which translates into an average annual growth rate of about 3.7%. With nameplate capacities unchanged since 2009, the
increase in supply resulted in improved operating rates, which have climbed to levels in the high 60% range, but this is still
lower than historically seen. In the last five years, actual consumption of polybutadiene elastomers has grown at a slightly
slower pace than production, increasing by only about 2.1% annually. This allowed for a further widening of the gap
between supply and demand, and ultimately resulted in higher net export volumes.
Looking ahead at 2020, domestic demand for Taiwan is projected to grow by an average of about 1.8% annually, compared
with the about 2.1% growth forecast for production levels. Given that no capacity expansions or closures are currently
expected in the country within the next couple of years, this will result in slightly higher operating rates. Taiwan will also
likely remain a net exporter of about 45 thousand metric tons in the forecast period.
Trade
Taiwan has been a small net exporter of polybutadiene elastomers for many years. Annual volumes increased since 2008
to a new high of about 48 thousand metric tons in 2014. This is more than 50% of the total output from the two
production units in the country. While Taiwanese exports are typically destined for other markets in Asia, such as China,
Indonesia, India, Thailand, and the Philippines, small volumes are also delivered to Western Europe, Turkey, and Canada.
Imports come mainly from Japan, South Korea, and Russia. This is not expected to change much in the forecast period,
with net exports estimated to remain around 45 thousand metric tons.

Southeast Asia
Southeast Asia includes the countries of Australia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
Producing companies
For 2015, the average annual nameplate capacity for polybutadiene elastomers in Southeast Asia is about 232 thousand
metric tons, representing 4.7% of the total global capacity. As shown below, Thailand is the largest market in the region,
accounting for about 48% of the total capacity, followed by Singapore (30%) and Malaysia (22%).

The following table provides an overview of all polybutadiene elastomer producers in Southeast Asia, including
Southeast Asian producers of polybutadiene elastomers

Malaysia
Malaysian Synthetic Rubber Pasir Gudang, Bahru 0 50 50 Start-up in December 2014
TSRC Pasir Gudang, Johor 0 0 50 Nd catalyst, start-up planned in mid-2017
Singapore
Lanxess Jurong 0 70 140 Nd-PBR plant, start-up in mid-2015
Thailand
BST Elastomers Map Ta Phut, Rayong 40 40 40 Multipurpose plant, Co/Ni catalysts
Thailand Synthetic Rubber Map Ta Phut, Rayong 72 72 72
Total 112 232 352
a. Nd = Neodymium, Ni = Nickel, Co = Cobalt, PBR = polybutadiene rubber.

As of 2015, the average annual nameplate capacity for polybutadiene elastomers in Southeast Asia amounts to 232
thousand metric tons, which is 120 thousand metric tons higher than in 2012. Some details about the most recent capacity
changes in the region are given below:
• In December 2014, the Malaysian Synthetic Rubber Company started up its new PBR plant at Pasir Gudang, Malaysia.
The unit has a capacity of 50 thousand metric tons.
• In the summer of 2015, LANXESS completed construction of its new 140 thousand metric ton PBR unit located at
Jurong Island, Singapore.
As a result of these changes, LANXESS is now the largest regional producer of polybutadiene elastomers, followed by Ube
Industries, which owns 35% of the Thailand Synthetic Rubber Company and 40% of the Malaysian Synthetic Rubber
Company.
One new PBR production plant is expected to come onstream in the region during the next five years. The Taiwan
Synthetic Rubber Company (TSRC) has already begun construction of a 50 thousand metric ton unit at the Pasir Gudang
site in Malaysia; estimated start-up date is mid-2017. While not shown in the table above, the supply and demand outlook
also assumes that additional polybutadiene elastomers capacity could be added in Indonesia by 2020. Michelin and PT
Chandra Asri Petrochemical announced that they intend to build a new Nd-calalyst-based PBR/SBR plant in Cilegon,
Indonesia. The new production unit, which will have a total capacity of 120 thousand metric tons (including 60 thousand
metric tons of PBR) is expected to come onstream in 2019.
Salient statistics
The following table presents the supply and demand balance for polybutadiene elastomers in Southeast Asia.

Southeast Asian consumption of polybutadiene elastomers

1990 10 80 8 17 — 25
1995 12 75 9 88 — 97
1996 12 75 9 47 — 56
1997 12 142 17 96 4 109
1998 57 58 33 80 16 97
1999 102 54 55 84 23 115
2000 102 71 72 89 33 127
2001 102 76 78 91 40 129
2002 102 82 83 98 44 137
2003 108 84 90 101 45 146
2004 108 97 104 124 76 152
2005 103 97 100 108 71 137
2006 112 108 121 118 97 142
2007 112 109 122 137 95 164
2008 112 104 117 130 77 171
2009 112 98 110 103 88 125
2010 112 94 105 97 70 132
2011 112 94 105 186 70 221
2012 112 58 65 178 35 208
2013 112 54 60 194 15 239
2014 116 53 62 160 20 202
2015 232 51 117 167 40 245
2020 412 70 289 155 112 332
(percent)
2015- 12.2 — 19.7 -1.5 22.9 6.3
2020
For 2015, regional production of polybutadiene elastomers is estimated at 117 thousand metric tons, which is almost twice
as much as the output in 2012 but only slightly higher than 2010. The large decline in supply was mainly the result of an
explosion at the BST Elastomers plant at Map Ta Phut in Thailand in May 2012 that seriously impacted the output of the
plant. While operations have recovered somewhat, most of the increase registered for the regional production of
polybutadiene elastomers in 2015 can be attributed to the recent start-up of new capacity in Malaysia and Singapore.
Operating rates remain deflated at average levels in the mid-50% range, which is much lower than historically seen.
Domestic demand for polybutadiene elastomers has increased at comparably high average rates of about 13.2% annually
since 2010, and given the shortages in supply, net import volumes moved up significantly to 75% of the total regional
requirement. As individual countries, Indonesia and Thailand are by far the largest consumers in the region, with each
accounting for 35–37% of the total demand in 2015.
In the forecast period, actual consumption levels are projected to grow at a much slower pace and increase at an average
annual rate of only about 6.3%, while nameplate capacities are expected to expand by about 12.2% annually. Operating
rates will likely improve to levels around 70%, as operations at new production plants stabilize. Also, with some of the
output being destined for the export market, the region will move to a much smaller net import position in the next
couple of years.
Trade
Southeast Asia is a net importer of polybutadiene elastomers. Historically, the average annual net import volume
amounted to roughly 50 thousand metric tons, but the regional requirement has increased significantly in the last four
years, reaching a maximum of almost 180 thousand metric tons in 2013. With respect to individual countries, Indonesia is
by far the largest importer of polybutadiene elastomers, accounting for about 54% of the total volume in 2015, followed by

Vietnam, Malaysia, and Thailand. Countries such as South Korea, Taiwan, Japan, and the United States are the current
major suppliers into the region.
Following the recent start-up of new export-oriented capacity in Singapore, exports out of the region are also expected to
increase, mainly to China and India. While imports of polybutadiene elastomers are not projected to change much in the
forecast period to 2020, exports of material from the LANXESS plant in Singapore are expected to increase quickly. This
will ultimately reduce the total net import volume from an estimated 127 thousand metric tons in 2015 to about 43
thousand metric tons in 2020.

Appendix—Other polybutadiene elastomers and resins
Emulsion-polymerized polybutadiene
Description
Polybutadiene elastomers (PBR) can be produced by emulsion polymerization using a special low-temperature process
similar to that utilized in the emulsion polymerization of styrene-butadiene rubber (SBR). Plants can usually make either
PBR or SBR.
In 1963, Texas-U.S. Chemical Company (later called Synpol Inc., in 1986 known as the Ameripol Synpol Corporation, and
now owned by Ashland) developed the first commercially acceptable emulsion-polymerized polybutadiene, which was
known as Synpol® E-BR®. Emulsion PBR has a random configuration of cis-, trans- and vinyl components and its structure
is similar to that of the butadiene portion of emulsion SBR. The processability of emulsion PBR is similar to that of SBR
and is therefore compatible and blends well with other diene polymers such as SBR, polyisoprene, polychloroprene, nitrile
rubber, solution polybutadiene, and natural rubber. While emulsion PBR has many attractive properties, including
resistance to flex cracking, high abrasion resistance, good low-temperature flexibility, and good dynamic properties,
several of its important properties are inferior to those of solution PBR so its use is limited to applications where its price
and performance properties are acceptable. Emulsion PBR can be used in blends with other elastomers where it imparts its
own properties to the blend, as well as enhancing the processing characteristics of the compound.
Producing companies
Until 1986, Synpol and BFGoodrich had two separate plants for the production of emulsion-polymerized SBR and
emulsion-polymerized PBR at Port Neches, Texas. Synpol’s combined annual average capacity was 176 thousand metric
tons and BFGoodrich’s was 148 thousand metric tons. In 1986, Synpol was merged into the Ameripol Synpol division of
the newly formed Uniroyal Goodrich Tire Company. This company was acquired in 1988 by the private investment firm
Clayton & Dubilier, and sold again in late 1989 to Michelin. In December 1992, Michelin sold the Ameripol Synpol
operations to Gantrade, an investment and trading company based in New Jersey. In July 2003, International Specialty
Products, Inc. (ISP) completed its acquisition of the Ameripol Synpol Corporation and operated the units under the name
ISP Elastomers. The company, which is now owned by Ashland, no longer produces emulsion PBR.
End uses
Emulsion polybutadiene can be used in the manufacture of radial tire carcasses, sidewalls, and treads. It is normally used
in a blend with solution PBR. Emulsion PBR typically sells at a lower price and therefore helps create lower overall costs
for the final products. In its key properties, emulsion-polymerized PBR is generally inferior to solution-polymerized PBR.
Thus, in most cases, it provides material formulators with a trade-off of lower cost for lower performance.
Tires are the predominant end use of emulsion PBR and it can also be used in truck and passenger tire retreads, where it
contributes good wear properties and resistance to groove cracking. In mechanical rubber goods, emulsion PBR can be
used in applications that require high abrasion resistance and good low-temperature flexibility, such as conveyor and
power belts, hoses, rolls, pipe gaskets, and shoe soles.
Emulsion-polymerized polybutadiene latex

Emulsion-polymerized polybutadiene latex is produced and used for the manufacture of most acrylonitrile-butadiene-
styrene (ABS) resins. These resins are manufactured by grafting acrylonitrile and styrene onto the unsaturated
polybutadiene backbone in a polybutadiene latex. (See the CEH Acrylonitrile-Butadiene-Styrene Resins report for additional
information on ABS resins.) As noted in the End Use section about impact modifiers at the beginning of this report, ABS
resins are also produced from solution-polymerized polybutadiene in a mass polymerization process involving the direct
addition of the rubber.

Vinyl polybutadiene
Solid syndiotactic 1,2-polybutadiene
Syndiotactic 1,2-polybutadiene (SBD) is a solid crystalline material with poor solubility characteristics. In the commercial
product, the 1,2 isomer (vinyl) content is about 90–94%, the average molecular weight is around 120,000 and the
crystallinity about 15–35%. SBD is produced solely by JSR Corporation at Ichihara, Japan. The plant capacity is estimated at
24 thousand metric tons as of 2013 and the trade name is JSR-RB®.
The Japanese domestic market is smaller than export sales. Production has been rapidly expanding to service the shoe sole
market. Italian and Asian companies are significant buyers for shoe soles. The material is a thermoplastic and can be
processed by injection molding, extrusion, and blown film methods. SBD is used to make a transparent stretch-type film,
tubes, hoses, shoe soles, and various sponges without plasticization and vulcanization. SBD can also be used to
manufacture various rubber goods with vulcanization, vibration-absorbing materials for automobiles, some injection-
molded products, and plastic modifiers.
Liquid 1,2-polybutadiene
Description
Liquid 1,2-polybutadienes are clear, amber-colored, viscous materials containing between 15% and 95% of a 1,2-vinyl
structure, with the balance being trans-1,4 and cis-1,4 isomers. Most of the materials are high in vinyl content (65–90%),
and the average molecular weight is in the range of 1,000–3,000. Medium- and high-vinyl 1,2-polybutadiene resins are
usually produced by solution polymerization of 1,3-butadiene in the presence of a butyllithium or sodium catalyst and an
anionic complexing material such as diglyme, diethyl ether, tetramethylethylenediamine, or tetrahydrofuran/heptane.
The basic 1,2-polybutadiene backbone can then be modified with hydroxyl, carboxyl, or maleic anhydride groups to
produce resins with special properties. In contrast to the more common cis-1,4-polybutadienes, which form elastomers
when vulcanized, the vinyl liquid 1,2-polybutadiene resins form thermosetting hard solids upon cure. The resins are
usually cured by heat in the presence of peroxides and sulfur (vulcanization).
Producing companies
In the United States, Cray Valley (formerly Sartomer) is the only producer of liquid high-vinyl 1,2-polybutadiene (Ricon®
material). The company manufactures liquid 1,2-polybutadienes (based on purchased butadiene) that are low-temperature
impact modifiers in polyolefins, styrenics, and thermoplastics. The material is also used as a compatibilizer in various
polymer alloys, including polyolefins. Overall, typical end uses for these resins include rubber and plastic compounding,
oil pump electrical cables, electrical composites, and sealants.
Liquid vinyl polybutadiene resins are also produced in Japan. Nisso-PB® is a liquid butadiene oligomer, obtained and
polymerized by Nippon Soda Company. In the past, Nippon Petroleum Refining Company also produced Nisseki-LPB®
polybutadiene, which is a liquid polybutadiene, using a technology developed by Nippon. However, the company is no
longer making this product.
In Western Europe, there are two known producers of liquid 1,2-polybutadiene. In the United Kingdom, Synthomer
produces Lithene®, a liquid polybutadiene compound that is available as two main types: nonfunctionalized Lithene® and
maleic anhydride–grafted Lithene®. In late 2013, the company introduced a new range of products, Lithene® ultra, which
is characterized by improved properties such as very low odor and better quality and performance in a wider range of
applications. In Germany, Evonik Industries produces nonfunctionalized and maleic anhydride–functionalized liquid
polybutadiene under the trade names of Polyvest® and Polyvest® MA.
While actual data are difficult to obtain for all producers, the combined annual nameplate capacity is estimated to be more
than 10 thousand metric tons globally.

End uses
Liquid 1,2-polybutadienes have high thermal stability, good moisture and chemical resistance, good adhesive
characteristics, and excellent electrical properties. The principal end use is as a coagent for elastomers and other
applications. The major application in the United States is as a modifier for EPDM or EPM, to achieve greater heat- and set-
resistance. Other ethylene-based materials, including EVA, EVM, and CPE, may also benefit from a 1,2-polybutadiene
coagent. It is used in wire and cable applications for better heat aging, fluid resistance, and electrical properties. Liquid 1,2-
polybutadiene is also used in room-temperature sealants, adhesives, and electrical potting and impregnation compounds.
In more recent years, there has been renewed interest in vinyl 1,2-polybutadienes. The high vinyl content of 1,2-
polybutadiene rubber for tires made by the n-butyllithium process is found to decrease rolling resistance and increase
mileage. Also, 1,2-vinyl polybutadiene is used as a nonextractable plasticizer for the compounds to improve processability.
It can also raise the cross-link density and the hardness of the vulcanizate. For improved handling, a dry liquid of this
material can be used.
Liquid polybutadiene—Hydroxyl and carboxyl terminated

Description
Liquid hydroxyl-terminated polybutadiene and its resins have an average molecular weight of approximately 3,000. The
microstructure of the homopolymers is similar to that of polybutadiene produced by emulsion polymerization, with the
exception of the terminal hydroxyl groups. The configuration of these polymers is approximately 60% trans-1,4, 20% cis-
1,4, and 20% vinyl 1,2-polybutadiene. The hydroxyl groups are primary and thus react easily.
Hydroxy-terminated polybutadiene is a substance that in one form is a critical modifier to the urethane composition and
in another, a solid rocket fuel binder (a major use of hydroxyl-terminated PBR).
Poly bd® resins are readily chain-extended with di- and polyisocyanates to give solid, rubberlike elastomers with a wide
range of mechanical properties. Poly bd® resins are currently manufactured and marketed by Cray Valley, a brand of Total.
The products can be reinforced with carbon black and other fillers, and can be extended with oils and asphalt. These
compounds can vary from completely castable semiliquids to millable gumstocks. The end products have good low-
temperature flexibility, excellent hydrolytic stability, electrical insulation properties and chemical resistance, and low
toxicity. They are widely used in adhesives, sealants, and electrical applications because of their low glass transition
temperature, hydrophobicity, acid-base resistance and other properties. As a hydrocarbon-based polyol, resins used in
polyurethane and polyester chemistries are reacted with polyisocyanates. Because of their low surface tension, they can
accommodate inorganic fillers and hydrocarbon plasticizers.
Producing companies
Until 1998, Phillips (now Chevron Phillips Chemical Company) was a producer of liquid hydroxyl- and carboxyl-
terminated polybutadiene elastomers under the trademark Butarez® with a plant in Borger, Texas. Phillips manufactured
Type I and Type II polymers with captive butadiene with different carboxyl content, and most sales were to the US
government. The plant ceased production of Butarez® in 1998 after an undisclosed incident and the facility was never
rebuilt.
At the end of 2008, upon the acquisition of Petroflex by LANXESS, the company ceased its hydroxyl-terminated PBR
production at Duque de Caxias, Rio de Janeiro, Brazil. The product trademarked Liquiflex® was mainly destined for the
European and Brazilian markets.
In January 2010, Sartomer Company and Cray Valley reorganized their business units. Cray Valley assumed responsibility
for the products Norsolene® and Wingtack® tackifying resins, along with Poly bd®, Ricon®, Krasol®, SMA®, SR®, and Saret®
rubber coagents, which were previously marketed under the Sartomer name. The company, which is a brand of Total,
produces hydroxyl-terminated polybutadiene elastomers at Kralupy (Czech Republic), Ravenna (Italy), Shunan (Japan),
and Channelview, Texas (United States), with the combined capacity of all sites estimated to be around 15–20 thousand
metric tons.

In November 2014, Evonik Industries commissioned a new hydroxyl-terminated polybutadiene production unit at its
existing Marl site in Germany. Capacities have not been made available, but estimates are on the order of several thousand
metric tons. The new product, which is marketed under the brand name Polyvest® HT, will be used mainly for adhesive
(automotive and electronic) and sealant (insulated glass windows) applications.
Other known producers of hydroxyl- and carboxyl-terminated polybutadiene include Zibo Qilong Chemicals at Zibo,
Shandong (China), which makes both types of the functionalized product, and Emerald Performance Materials (through
its affiliate CVC Thermoset Specialties) at Akron, Ohio (United States), which only makes carboxyl-terminated product
under the trade name Hypro® (formerly Hycar®).
End uses
In the United States, the main uses for hydroxyl-terminated polybutadiene resins include adhesives, sealants (double-
pane and glazed windows), electrical applications (electrical coating), rocket combustion fuel (binders for rocket
propellants), as a hydrocarbon-based polyol (polyol component, widely used in polyurethane and polyester chemistries by
reacting with polyisocyanate or carboxylic acid derivatives), flexibilization of epoxy systems, potting and encapsulation,
waterproof coatings and membranes, and the automobile industry.
The main growth driver today and moving forward is its use as a sealant for double-paned windows (polyol component),
an application that is closely tied to the health of the construction industry. System competition remains an issue; for
example, polysulfide elastomers used for polysulfide sealants compete in the sealants category in double-paned windows
(as do silicone sealants) and in waterproofing membranes.
In Japan, about half of the market for hydroxyl-terminated polybutadiene is for use in sealing and caulking agents, while
the rest is consumed by the production of adhesives, coatings, waterproof membranes, and molded parts.
Liquid 1,4-polybutadiene
As with liquid 1,2-polybutadiene, Evonik Industries (formerly Degussa) manufactures a low-molecular-weight, high-cis
(99%) liquid 1,4-polybutadiene at Marl, Germany with an estimated capacity of 3 thousand metric tons as of mid-2013.
The company produces both high-cis liquid PBR and maleic anhydride–grafted variants; the trademarks are Polyoil® and
Polyvest® (functionalized 1,4-PBR), respectively. These products are used primarily in adhesives and sealants, but also find
use as anticorrosion primers and potting compounds, for resins modification, and as a binder for rubber compounds. The
maleic anhydride–grafted adduct is more polar than the nonfunctionalized product, offering better electrical insulation
and resistance to freezing temperatures.
In addition, Kuraray Co., Limited also manufactures liquid 1,4-polybutadiene at Kamisu, Ibaraki Prefecture, Japan (grades
of LBR-300, LBR-305, and LBR-307). Capacity is unknown, but the combined capacity for liquid 1,4-polybutadiene, liquid
isoprene rubber, and liquid SBR is estimated at about 10 thousand metric tons as of mid-2013. The main applications for
the liquid PBR product slate are for sealants (automobile), reactive plasticizers, and pressure-sensitive adhesives.
Trans-polybutadiene
Trans-polybutadiene is no longer produced. Historically, DuPont’s facility at Fort Madison, Iowa produced Budium®, a
predominantly trans-polybutadiene liquid resin for use as a protective coating on the inside of metal cans and containers.
This product line was discontinued in mid-1983. Trans-polybutadiene was also produced by Phillips and Uniroyal in the
United States, but only in pilot-plant quantities. Phillips ceased work on the material when the Borger, Texas solution
polybutadiene plant was shut down in 1984, and Uniroyal’s project was terminated.

Bibliography
IHS Chemical Economics Handbook—The following CEH reports contain additional information that is pertinent to
the subject of this report:
Acrylonitrile-Butadiene-Styrene (ABS) Resins

Butadiene
Carbon Black
Natural Rubber
Polystyrene
Silicates and Silicas
Styrene-Butadiene Elastomers (SBR)
IHS Chemical Market Advisory Service: Global C4 & Elastomers—Provides price discovery and critical insights related
to butadiene, butylenes, MTBE, and C4-based elastomer markets. Service includes database access, weekly price updates,
and monthly market analysis.
IHS Chemical Market Advisory Service: Global Tire Type Indices—Provides a monthly index for past and current raw
material costs in Asia, Europe, and the United States, for five different types of tires: A-rated to C-rated passenger car tires
(EU labeling), D-rated to G-rated passenger car tires (EU labeling), truck tires, agriculture tires, and OTR tires. The service
also includes a series of indexes detailing historical and current tire raw material cost trends that are categorized by
chemicals such as synthetic rubber, butyl rubber, polybutadiene rubber, halo butyl rubber, natural rubber, carbon black,
fibers, steel cord, and silica.
IHS Chemical Process Economics Program—The following Process Economics Program reports contain more detailed
information on the manufacturing processes, process design, and process economics of the chemicals discussed in this
report:
Polybutadiene, Report No. 74, November 1971

Polybutadiene Production by Lithium Catalyst, Review 2014-14, November 2014
Polybutadiene Production by Neodymium Catalyst, Review 2014-09, October 2014
IHS Chemical World Analysis: Rubber—Supply and demand balances for butyl rubber, nitrile rubber, polybutadiene
rubber, and styrene-butadiene rubber by country and region, including 10 years of forecast, are given in this report. This
study comes with database access and includes biannual updates.

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World supply/demand for polybutadiene elastomers

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cis-1,4 Content of polybutadiene elastomers produced by different catalyst systems

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Processing and compounding

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Western European producers of polybutadiene elastomers

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