Synthomer lifts prices to offset Iran war costs, benefits from volume gains (updated)

Synthomer

30/04/2026 08:34

Synthomer benefits from pricing and demand as Asian rivals face disruptions amid Iran war

Company maintains 2026 outlook

Synthomer refinances debt, CFO Lily Liu to depart for Umicore

Rewrites throughout, adds CEO comment in paragraph 5 and analyst in 6; graphic

By Tuhina and Nithyashree  R B

April 30 (Reuters) - UK specialty chemicals supplier Synthomer SYNTS.L forecast stronger second-quarter volumes and margins on Thursday as it capitalises on robust demand and pricing while Asian rivals grapple with supply disruptions, sending its shares as much as 33% higher.

Since the start of the Iran war, it has been able to pass on higher raw material and energy costs to customers and ship more of several base chemical products due to disruption at competitors, particularly in Asia, Synthomer said.

The conflict offered it "huge opportunities as well as challenges," the maker of polymers, such as latex used in surgical gloves, said.

        "From the beginning of the Iran conflict we have seen a changed operating environment where many of our key strengths, our improved operating leverage and our 'in region for region' manufacturing strategy are proving to be beneficial," CEO Michael Willome said in a statement.

Synthomer, which has 29 manufacturing sites across Europe, North America, the Middle East and Asia, kept its 2026 outlook unchanged, but said it could potentially upgrade it if second-quarter trading conditions continued.

J.P. Morgan analyst Chetan Udeshi said gains in Synthomer's volumes and pricing power resulted from production cuts at some of its competitors and demand driven by fears of supply shortages and further price hikes.

Synthomer's coatings and construction solutions business that provides chemicals for primers and paints is also increasing its U.S. manufacturing to localize products previously only made in Europe, while boosting capacity in the Middle East and targeting growth in China.

Synthomer, which reported a 21.8% drop in continuing underlying operating profit in 2025, has also been cutting costs and looking to divest non-core assets to reduce debt and deal with the dampening effect of U.S. tariffs on demand.

        Synthomer's shares surged to their highest level since October as the company said it refinanced its debt, extending maturities to 2029 from 2027. It also said its finance chief Lily Liu was stepping down to join Belgian metal recycling group Umicore UMI.BR.

($1 = 0.7417 pounds)

Synthomer stock soars as Iran conflict boosts Q2 outlook https://www.reuters.com/graphics/SYNTHOMER-HOT/byprnnewrpe/chart.png

 (Reporting by Tuhina and Nithyashree R B in Bengaluru; Writing by Yadarisa Shabong; Editing by Sumana Nandy)

 ((Tuhina@thomsonreuters.com;))