ARLANXEO has announced plans to construct a rubber facility known as the "Project" in Jubail, Saudi Arabia. The facility will have a production capacity of 140 kilotons per annum (ktpa) and manufacture two high-performance elastomers: Ultra High cis Polybutadiene (NdBR) and Lithium Butadiene Rubber (LiBR). This construction initiative is taken after the final investment decision made by Aramco and TotalEnergies to establish a petrochemical facility on a global scale in Saudi Arabia referred to as the "Amiral" complex. 

The engineering, procurement, and construction contracts will be distributed in the second half of 2023 and construction is expected to commence in 2024, followed by commercial operations beginning in 2027.

NdBR is primarily used in high-performance tires, more specifically in the tread area due to its proven capability to enhance fuel economy, grip, tire durability. ARLANXEO views NdBR as a significant component of its sustainability drive. Whereas, LiBR is primarily utilised in plastic modification applications, enhancing the impact resistance of products used in sectors such as food packaging and household appliances industry.

Olivier Thorel, Chairman, ARLANXEO Shareholders’ Committee and Senior Vice President (Chemicals), Aramco stated, “The planned construction of a 140 ktpa rubber plant in Saudi Arabia, integrated within SATORP’s Butadiene facility, underscores ARLANXEO’s drive to grow in a competitive market. With ARLANXEO’s unparalleled expertise in developing, producing and marketing high-performance synthetic rubbers, the strategic rationale for the Project is clear and compelling.” 

Donald Chen, CEO - ARLANXEO quoted, “ARLANXEO is delighted to announce the planned expansion of its asset base to Saudi Arabia. The Project is an important part of our growth plans and is expected to reinforce ARLANXEO’s leadership position in high performance rubbers. This is the start of an exciting chapter for ARLANXEO and our employees, and we look forward to supplying our customers with reliable rubber from a world-class and highly competitive asset.”

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Kraton Corporation, a leading global producer of speciality polymers and high-value bio-based chemicals derived from pine wood pulping co-products, a global price increase for all polymer products with effect from 1 April 2026. The price hike will range from USD 440 per MT to USD 700 per MT, or as individual contract terms permit, with the exact price change varying according to the polymer type and production location.

The driving forces behind these significant pricing actions are multifaceted, rooted in substantial disruptions to global supply chains. These disruptions are largely attributed to the ongoing conflict in the Middle East, which has had a cascading effect on logistics. Compounding this issue are the sharply rising costs associated with transportation and essential raw materials.

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German specialty chemicals company LANXESS has announced a global price increase for its portfolio of functional additives for the manufacture of tyres and speciality rubbers. These changes, which are set to take effect immediately or as soon as individual contract terms permit, will see prices rise by 15 to 50 percent.

The driving forces behind these significant pricing actions are multifaceted, rooted in substantial disruptions to global supply chains. These disruptions are largely attributed to the ongoing geopolitical conflict, which has had a cascading effect on logistics. Compounding this issue are the sharply rising costs associated with transportation and essential raw materials.

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Orion S.A., a global speciality chemicals company, has announced a global price increase for its portfolio of speciality carbon black. These changes, which are set to take effect immediately or as soon as individual contract terms permit, will see prices rise by up to 25 percent.

In a strategic move to address persistent market volatility, the company is also implementing a variable surcharge on top of the base price increase. The driving forces behind these significant pricing actions are multifaceted, rooted in substantial disruptions to global supply chains. These disruptions are largely attributed to the ongoing conflict in the Middle East, which has had a cascading effect on logistics. Compounding this issue are the sharply rising costs associated with transportation and essential raw materials.

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German chemical group WACKER has announced a price hike across its global polymers portfolio, responding directly to significant upheavals in international commodity markets triggered by the recent military conflict in the Middle East. This geopolitical instability has created pronounced distortions throughout the supply chain, leading to a sharp escalation in the costs of essential inputs. The company is experiencing substantially higher prices for crude oil and natural gas as well as for various other raw materials and logistics services.

To address this challenging economic landscape and offset the considerable burden of increased raw material and transportation expenses, the chemical group is implementing price adjustments effective 1 April 2026. The updated pricing will apply to several key product categories, specifically including polymer dispersions, a variety of resins and dispersible polymer powders. This strategic move is essential for the company to maintain operational stability and continue delivering its products reliably amidst the volatile market conditions.

The final scale of these price increases is not a fixed, across-the-board figure but will be determined by specific variables. It will largely depend on the original source of the product, with goods manufactured at the company’s European and Asian production sites being most affected. Furthermore, the terms outlined in existing customer contracts will also play a crucial role in defining the exact extent of the adjustment, ensuring a tailored approach to the implementation of this necessary price correction.

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