MOSCOW (MRC) -- Versalis (Eni), a global leading producer in the elastomers industry, and LOTTE Chemical, a major petrochemical company in South Korea, announced today to have extended their cooperation in the elastomers business under a technology license agreement regarding, in particular, the Styrene-Isoprene-Styrene and Styrene-Butadiene-Styrene (SIS/SBS) product lines to target the specialty hot-melt adhesives market and additional market segments such as technical and sports articles, bitumen and plastics modifiers, as per Eni's press release.
Under the deal, the companies will focus on the styrene-isoprene-styrene and styrene-butadiene-styrene (SIS/SBS) product lines to target the specialty hot-melt adhesives market and additional market segments such as technical and sports articles, bitumen and plastics modifiers.
Versalis chief executive officer Daniele Ferrari said: "In times when market scenarios evolve so rapidly and unpredictably, joining forces is the best way to improve competitiveness, especially in the elastomers business where a proper international presence is fundamental to keep the leading position on the marketplace."
The two companies launched the development of elastomers productions with Versalis proprietary technologies in Yeosu, South Korea, in 2012. Later they formed a 50:50 joint venture, named Lotte Versalis Elastomers (LVE) in October 2013.
LVE will now use the Versalis SIS/SBS proprietary technology for a 50kt/y plant to be constructed at Lotte's facility in Yeosu, South Korea.
With start-up scheduled for early 2018, the SIS-SBS plant will be connected to the new isoprene plant and the butadiene unit, which is already up and running at Yeosu for feedstock.
The new capacity is expected to add up to the styrene-butadiene and ethylene-propylene-derivatives unit under the 2012 master agreement, contributing to total 250kt/y of elastomers.
As well as granting right to use proprietary SIS/SBS process and engineering services, Versalis will also provide a comprehensive know-how, acknowledged commercial capabilities and technical assistance.
Meanwhile, Lotte will manage the vertical integration with its new isoprene unit, which will be completed within the second half of 2016, in addition to providing the Yeosu plant operations, maintenance services and existing infrastructures, including logistics.
The cooperation is anticipated to provide the two companies with an opportunity to strengthen and enlarge the scope of their alliance onto premium market segments with a rapidly escalating demand in the Asian region.