SINGAPORE: Indian companies are investing in synthetic rubber, with recent capacity additions of about 270,000 tons per year, industry sources said today.

Tire manufacturers have also asked to start production of solution styrene butadiene rubber (SSBR), which is needed to produce high-performance tires. Demand is expected in the coming years.

As of the end of 2016, India’s demand for 580,000 tons of (SR) per year, said Juan Ramon, CEO of the Synthetic Rubber Manufacturers Association.

By comparison, domestic SR production was 480,000 tons per year.

He said in 2017 “India is likely to be self-sufficient at the World Rubber Summit 2018,” India said at the World Rubber Summit 2018 Annual production will be around 650,000 tons.”

Singh, Head, India Rubber Synthetic Rubber Private Limited (ISRPL) Amardeep added, “New investments in products are planned to strengthen our SR portfolio.”

In 2014, ISRPL started producing 120,000 tons of emulsified styrene butadiene rubber per year for tire manufacturing (ESBR).

In 2015, Reliance Group set up a plant with an annual production capacity of 150,000 tons of ESBR. The combined production of the two companies can meet the demand of about 270,000 tons/year of ESBR. ESBR is mainly used in tires.

Singh expects the demand for tires from automakers to increase significantly in the coming years.

However, market participants said that with strong economic growth, India will be the world’s largest automotive market in the coming years and hence more investment in SR capacity will be required.

It includes SSBR, which is SR One of the advanced products in the range can complement the natural rubber used in manufacturing. They said.

Indian Oil Corporation has been investing in downstream products to meet its raw material requirements. They are further increasing capacity for butadiene and styrene, officials said.