Specialty chemicals company Lanxess said it expects a boost in demand for high-performance rubbers due to the European Union tire labeling legislation that comes into effect in 2012.

Lanxess CEO confirmed the Group's earnings forecast for the full year 2011, because of the ongoing strong demand for synthetic rubbers, also used in winter tires.

Chairman of the Board of Management of Lanxess, Axel Heitmann stated, "As announced, we will increase our EBITDA pre exceptionals by roughly 20%. The third quarter is going very well and will be better than the third quarter of last year."

By the end of the year, Lanxess noted that it would be producing the bio-based EPDM rubber in Brazil. EPDM is normally produced with the two raw materials ethylene and propylene, which are based on crude oil. As an alternative, the company intends to use ethylene produced entirely from the renewable raw material sugar cane. The company Braskem would supply the existing Lanxess EPDM plant in Triunfo, Brazil, with the ethylene by pipeline.

Because of the European Union tire labeling initiative, the market share of "green tires" made of high-performance rubber would improve from its present 35% to about 50% of the overall tire market, the company added.