Italy's Versalis and South Korea's Lotte Chemical have extended their elastomers collaboration to include styrene-isoprene-styrene and styrene-butadiene-styrene (SIS/SBS) product lines to target the specialty hot-melt adhesives market as well as additional segments such as technical and sports articles, bitumen and plastics modifiers.

Under a licence agreement, Versalis will supply its SIS/SBS proprietary technology for a 50,000 t/y plant to be built at Lotte Chemical's site in Yeosu. Start-up is scheduled for the beginning of 2018. The SIS/SBS facility will be linked to a new isoprene plant, which is due to be completed during the second half of 2016, and an existing butadiene plant, both of which will supply feedstock.

The companies said the co-operation enables both partners to strengthen and enlarge the scope of their alliance onto premium market segments in Asia where demand is rapidly escalating.

"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 SIS/SBS licence agreement seals more than a business accord between partners, it proves that sharing the same vision brings opportunities for growth and value to both parties," said Versalis' CEO, Daniele Ferrari.

The partnership between Versalis and Lotte Chemical started in 2012 with the development of elastomers production in Yeosu. This was followed in October 2013 by the formation of their 50:50 joint venture Lotte Versalis Elastomers.