Repsol, through its affiliate Repsol Qu�mica, has signed an agreement with the Mexican company GIRSA, an affiliate of DESC, S.A. de C.V., by which both companies declare their intention of forming an alliance, on equal share terms, joining their solution synthetic rubber businesses.

Repsol Qu�mica owns a production plant at Santander, Spain, with a capacity of 110,000 tonnes per year, and sells its products worldwide. Its main strengths lie in a solid presence throughout the European market, mostly in the thermoplastic rubber (SBS) sector, and good prospects for the future from the new hydrogenated thermoplastic rubber (SEBS) plant, which went on stream recently.

GIRSA�s solution rubber business is conducted through its affiliate company INSA (Industrias Negromex, S.A. de C.V.), with a 90,000 tonne per year production at its plant in Altamira, Tamaulipas (Mexico), from which its products are marketed throughout the world. Its main strength resides in an important presence on NAFTA markets, mostly in SBR rubber specialties.

The product portfolio and geographical market coverage of the two companies complement each other, and this alliance therefore produces synergies, which will reinforce the good position they already hold individually in this sector. Both partners will thus consolidate their strategic goal of achieving a higher leadership position on a global basis. From the start, this joint venture will become one of the world�s top three producers of solution styrene-butadiene specialty rubber, and the second largest producer of hydrogenated thermoplastic rubber.