Industrial Report

Busy warehouse with pallet trucks working
Busy warehouse with pallet trucks working

Industrial Overview

The majority of supply and demand for chloroprene rubber comes from China, Japan, Germany, and the U.S. China in particular has high consumption of chloroprene rubber and its consumption increase is rapid due to the manufacturing industries in the location. Developing countries in Latin America, Asia Pacific, and Eastern Europe witnessed strong demand for this material. Economic growth, increasing automotive output and emergence of manufacturing industries in these regions have resulted in higher consumption of chloroprene rubber. Asia Pacific is expected to be the largest and fastest growing market for chloroprene rubber owing to surging demand from China in diverse automobile and industrial component applications. North America and Europe are anticipated to witness significant growth following Asia Pacific on account of increasing population and rapid industrialization over the forecast period.

Chloroprene Rubber: Manufacturers

Current major manufacturers of Chloroprene Rubber elastomers are LANXESS, TOSOH, DENKA (With the completion of acquisition of DuPont’s CR Business in 2015), Shanna and Huojia Changhua.

Industry Forecast/Development/Vision

World’s demand for Chloroprene Rubber (CR) has grown at a fast pace in the past decade. Looking ahead in the next decade, we expect both production and demand will continue to grow. The 2017 global CR production capacity is estimated at 340,000 tons/year, and the actual production output is about 300,000 tons/year.

Here at Wealth Ocean – Rubber Division, we are the exclusive distribution & sales agent in U.S.A. representing Shanna Synthetic Rubber Co. Ltd., and Shanxi Huojia Changhua Co. Ltd.

Our company CR products maintains at the upper class/reaches of the chloroprene rubber market with advanced technical threshold. The current production capacity of Shanna Synthetic Rubber plant is 30,000 tons/year with an annual sales volume of RMB 870 million in the fiscal year of 2017. We expect to expand and increase the production capacity in Shanna Synthetic Rubber plant by 16%, about 35,000 tons per year in 2018, and we estimate the production capacity in Shanxi Huojia Chuanghua Co. Ltd to reach 40,000 tons/year.

In the coming years, we strongly believe there is going to be a market situation where CR supply exceeds the demand, and we sincerely hope to respond to this and any future challenges by expanding our CR business and deploying strong supply to better position us to achieve greater customer satisfaction and product quality.

fire protection systems, piping for water pipes
fire protection systems, piping for water pipes