Sumitomo Chemical signs joint-venture agreement with Zeon


Japan-based Sumitomo Chemical has entered into a joint-venture agreement with Tokyo-based Zeon, for creating a joint-venture company between the two companies and integrating their Solution Styrene Butadiene Rubber (S-SBR) businesses.

Both the firms will be focusing on developing new products and serve the customers in a better manner as well as in meeting their expectations.

The new joint venture will also try to bring their technologies together, which would further enhance their cost-competitiveness, and also bolstering their business through an ensured stable supply of products, or transferring their S-SBR business operations.

"Sumitomo Chemical’s S-SBR will be used as a feedstock for fuel-efficient tires, adhering to environmental awareness as well as tightening environmental regulations."

Sumitomo Chemical’s S-SBR will be used as a feedstock for fuel-efficient tires, adhering to environmental awareness as well as tightening environmental regulations.

The company anticipates that the demand for fuel-efficient tires is likely to increase steadily in the future. Most of the companies are looking forward to enhance their production capacities.

The two Japanese companies have also agreed that certain synergistic benefits should accrue from integrating their businesses in a manner outlined below.

As agreed in the joint-venture agreement, Zeon will establish a new wholly owned subsidiary called ZS Elastomer.

Upon establishment of the new subsidiary, Sumitomo and Zeon will then succeed the rights and obligations of the sales and R&D functions of each company’s respective S-SBR business to ZSE.

Sumitomo and Zeon will be focusing on developing new products and serve the customers in a better manner, as well as in meeting their expectations.

The new joint venture will also try to bring their technologies together, which would further enhance their cost-competitiveness, and also bolstering their business through an ensured stable supply of products, or transferring their S-SBR business operations.