On July 12, leading Korean producer, LG Chem revealed that its Chinese subsidiary has started operations at its Nitrile Butadiene Latex (NBL) plant in Ningbo, China. The plant holds NBL production capacity of 100 KTPA and is aimed at meeting the region’s demand for Nitrile Gloves.The demand for NBL has been growing since the Covid-19 outbreak due to rising consumer demand for healthcare and hygiene products.

Moving with the current demand trends, the company is also planning to expand its new plant’s capacity by 110 KT by the first half of 2022. As per the Chinese sources, the new order enquiries for Nitrile rubber in China have jumped by 10-20 percent in the recent weeks after supply restrictions have been imposed due to the resurgence of COVID cases in Malaysia, the world's largest rubber-glove supplier.

LG Chem has also entered into an agreement to build NBL joint venture in Malaysia with Petronas Chemical Group (PCG), Malaysia's state-run petrochemical firm. The company, where LG Chem owns a 51% stake, is building NBL plant with an annual production capacity of 200 KTPA in the Pengerang region of Malaysia. It is expected to start production products in the first half of 2023.