Kraton Corporation plans to increase production of its SYLVATRAXX tread enhancement additives (TEA) to meet the growing demand in the tire industry. The expansion at the Niort plant in France is expected to result in a 20% increase in production and is scheduled to be completed by the fourth quarter of 2018. The increased demand for TEA is driven by the need for safety, fuel economy, and sustainability in the tire industry. Kraton is also exploring additional options for manufacturing expansion to meet long-term demand growth.
HOUSTON - Kraton Corporation (NYSE: KRA), a leading global producer of styrenic block copolymers, specialty polymers and high-value performance products derived from pine wood pulping co-products, announces it intends to increase operational capacity of SYLVATRAXX tread enhancement additives (TEA) to meet the growing demand in the tire industry. Kraton anticipates that the expansion will result in a 20 percent increase in production at the Niort plant in France and is scheduled to complete by fourth quarter 2018.
"We are excited to support our customers with an investment in the increased capacity," said Kevin Campbell, Kraton's Vice President, Emerging Business. "Kraton is a proven leader in tread enhancement additives, and we remain committed to meeting the tire industry's needs for long-term growth."
The Niort facility has a long history of supplying a wide range of products to the tires industry including pure aromatic monomer resins and aromatically-modified terpene-based resins with a higher renewable content.
Kraton is exploring additional options for manufacturing expansion to meet long-term demand growth.
The TEA demand growth is driven by an increased need for safety and fuel economy as well as sustainability considerations. SYLVATRAXX products are intended to provide tire manufacturers with an improved balance of wet grip performance and low rolling resistance and up to 100 percent biobased content.