Prague, Czech Republic – Draslovka Holding a.s. (“Draslovka” or “the Company”), a Czech family-owned global leader in CN-based specialty chemicals, including sustainable solutions for the metal mining industry, and next generation fumigants and biocides, announces the expansion of its Diphenylguanidine, (“DPG”) production business into new markets. The company is exploring potential locations in India’s Gujarat region, as well as a location in the footprint of its existing factory in Memphis, Tennessee.
The expansion will allow Draslovka to meet the needs of global tyre manufacturers focused on sustainable products to support the global green transition. Following Europe, North America is the second largest market in terms of DPG consumption. Draslovka’s new facility in Memphis, acquired last year and the largest solid cyanide production facility in the world, is a logical choice for this strategic expansion. Draslovka is already in talks with local stakeholders on an expansion that would benefit global tyre manufacturers based in neighbouring states.
Draslovka currently has 20% of DPG’s global market share and expansion into India, a manufacturing hub for green tyres, could make Draslovka one of the largest suppliers of this product globally. The Company is also analysing the option of consolidating additional production capacity at only one of the mentioned locations.
DPG is used widely as an accelerator in processing natural rubber, and is a key component of high-performance, green tyres. It interacts with the silica surface and reinforces the rubber’s compounds. This serves to decrease rolling resistance, which usually accounts for as much as 30% of a vehicle’s fuel consumption and a quarter of its CO2 emissions.
As a result of increasing environmental awareness and stricter government regulation in Europe, the demand for fuel-efficient, high-quality, green tyres is increasing by roughly 10% per year and is set to grow apace in the future as this demand continues to build. Draslovka is a trusted supplier of DPG to numerous top tier tyre manufacturers, including the five largest tyre companies in the world.
Pavel Brůžek, CEO of Draslovka, said: “We are excited about this opportunity to expand our presence in Memphis, as well as the new possibilities that regions in India such as Gujarat pose. This expansion will drive intelligent, efficient, and sustainable advancements in the global green tyre market. India and North America are regions which will allow Draslovka to evolve its offerings to the global automotive industry at large and become one of the largest suppliers of DPG globally.”