Specialty chemicals group Lanxess said it will expand the global capacity of its high-performance rubber Nd-BR (neodymium butadiene rubber). The €20 million investment will increase production capacity to an additional 50,000 metric tons per year at is sites in Dormagen,Germany; Orange, TX, U.S.; and Cabo, Brazil. The extra capacities will go on stream between the first quarter of 2011 and first quarter of 2012.

The additional capacity will serve the global demand for Nd-BR, which the company said it expects to grow annually by close to 10% in the coming years. Lanxess also said in a statement that there would be a worldwide product shortage for this type of material by 2014. The positive development of Nd-BR is being driven by the trend towards greater mobility - especially in Asia - as well as motorists, who are demanding higher environmental and safety standards in performance tires. The world's leading tire manufacturers, who are supplied by Lanxess' global rubber manufacturing network, are responding to this demand by expanding production in the BRIC markets.

In addition, the European Union approved in November 2009 a new regulation, which stipulates that by November 2012 new tires sold in Europe have to be labeled for fuel efficiency, wet grip and external rolling noise. The aim of the legislation is to reduce CO₂ and noise emissions by promoting green tires that do not compromise on safety. In addition, the labels will provide more transparency to consumers and aid them in their purchase decisions. The tires are to be categorized in a system of classes, with the best performance being labeled "Class A" and the poorest "Class G."Tire makers in Japan are voluntarily introducing tire labels from the beginning of 2010, while the U.S. is also evaluating similar labeling regulations.