Repsol and Grupo Kuo Expand Joint Venture Dynasol
Repsol and the Mexican company Grupo Kuo reached an agreement to extend their current joint venture, Dynasol, which will become one of the leaders in the global synthetic rubber market.
Dynasol will focus on developing products for the high-performance tire sector, a market with high demand and added value, which uses synthetic rubber as a raw material. The tire sector is a strategic one which currently accounts for 70% of the synthetic rubber demand worldwide.
Grupo Kuo and Repsol have been equal partners in Dynasol since 1999. The joint venture is currently the world's second largest producer in asphalt modification and a leader in other applications such as adhesives, sealants, and technical compounds. It has facilities in Altamira, Mexico, and in Santander, Spain. Also, at the end of the second quarter of 2015, a new plant in Liaoning, China will be opened. Its products are marketed in 70 different countries.
As part of the new agreement, Grupo Kuo will provide Dynasol with its synthetic rubber solution and nitrile rubber units in Altamira, Mexico, and China as most of its production is allocated to the tire industry. Repsol will contribute its chemical accelerators for rubber vulcanization unit, General Química, located in Álava, Spain. It is the second largest European producer of these specialized products, the main application of which is the production of tires, footwear, and technical parts. This modifies the shareholders agreement for the integrated joint management of Dynasol. Madrid will be home to its headquarters and it will have operations centers in three countries (Spain, Mexico, and China) as well as offices in all three countries as well as in the United States.
The joint venture will have an estimated revenue of USD 750 million and will produce more than 500,000 tons a year of high added value materials, and will become a major player in Latin America, North America, and China.
REPSOL Quimica S.A.
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