RUBBER COMPOUNDING INTERVIEW

1. HOW DID 2024 END FOR MESGO?

Personally, I only partially agree with that assessment. The beginning of 2024 showed positive signs, with moderate optimism tied to a recovery in demand and greater stability compared to previous months. However, starting from the second quarter, we saw a slowdown, particularly in key sectors such as automotive and white goods. This decline became more pronounced after the summer, confirming a broader industrial contraction. Nevertheless, MESGO closed 2024 with a slight increase in volumes sold compared to the previous year, thanks to the acquisition of new opportunities.

2. THE BEGINNING OF 2025 WAS MARKED BY U.S. TARIFFS. HOW IS MESGO DEALING WITH THIS UNCERTAINTY?

The slight recovery in the rubber sector in early 2025 was undoubtedly held back by uncertainty over U.S. tariffs, which has caused concern especially for companies with business ties to the U.S. market.

International geopolitical developments are being closely monitored, especially by Hexpol, due to its global presence in rubber compounding and beyond. Through participation in international networks and strong relationships with strategic partners, efforts are being made to anticipate or mitigate potential risks from reciprocal tariffs between nations — especially regarding raw material supply chains. In any case, the economic outlook remains weak, and this clearly affects customer orders, medium/long-term investments, and future strategic planning.

3. WHICH SECTORS ARE PERFORMING BETTER? WHICH ONES ARE STRUGGLING?

Currently, we are seeing uneven performance not only between different application sectors, but even within the same sector depending on the application. For example, in the automotive sector, we are seeing positive momentum for electric and hybrid vehicle projects, while traditional combustion engine projects are facing difficulties.

The household appliances sector has also been struggling since last year, as has construction. In contrast, oil & gas and renewable energy sectors are performing better. Among the elastomer families in our portfolio, silicone compounds are performing well, driven by increasing demand in the energy and medical sectors. HNBR compounds are also in higher demand, and fluorinated compounds continue the positive trend observed last year. Meanwhile, commodity compounds (EPDM, NBR, SBR, NR) are showing fluctuating results, being more sensitive to price competition and market pressure.

4. ARE PFAS-RELATED UNCERTAINTIES AFFECTING YOUR BUSINESS?

Yes, restrictions and regulatory uncertainties surrounding PFAS, especially FKM, are inevitably affecting our sector. Some clients are more cautious about starting new projects, waiting for clearer regulations, while others are already testing fluorine-free alternatives.

At MESGO, we are actively investing in the development and qualification of formulations based on polymers free from fluorinated surfactants, both to meet specific customer requests and to offer ready alternatives in view of future regulations.

5. WHAT INITIATIVES ARE YOU UNDERTAKING IN TERMS OF SUSTAINABILITY?

The growing availability of raw materials from renewable sources and recycling processes is a promising sign toward a more sustainable and circular economy. In this context, Hexpol confirms once again its pioneering role.

Among the most relevant initiatives is the launch of an in-house devulcanization plant, which will allow our clients to recover and repurpose their industrial waste. In addition, under the Hexgreen brand, we have developed a range of compounds partially formulated with sustainable raw materials (from recycling or bio-feedstocks), characterized by lower CO₂ emissions compared to those made with traditional raw materials.