Sumitomo Chemical Signs Joint Venture Deal with Zeon
Sumitomo Chemical Co., Ltd., to set up a
new joint venture company with Zeon Corporation to integrate their respective
Solution Styrene Butadiene Rubber (S-SBR) business
Japan:
Sumitomo Chemical Co., Ltd.,
a Japan based chemical company enters into an agreement with Tokyo based
chemicals manufacturer, Zeon Corporation to set up a joint-venture company and
merge their respective Solution Styrene Butadiene Rubber (S-SBR) business. As
per the deal, both the companies will set up a new completely owned subsidiary
called ZS Elastomer (ZSE), post which, both the parent companies will pass on
their respective rights of sales and R&D functions related to S-SBR
business to ZSE. Additionally, this collaboration will aid in enhancing
cost-competitiveness and bolster the company’s business through consistent
supply of their products. ZSE will utilise Sumitomo’s S-SBR as a raw material
for production of fuel efficient tires, meeting environmental awareness and
stringent environmental regulations.
TechSci
Research depicts that setup of this
new joint-venture will cater to the demand for tire chemicals for production of
fuel-efficient tires in the domestic market. Further, it will strengthen the
position of Sumitomo Chemical in the global tire chemicals market.
According
to the recently published report by TechSci
Research, “Global
Tire Chemicals Market
By Type (Natural Rubber, Synthetic
Rubber, Carbon Black, etc.), By Tire Category (Passenger Car, Bus and Truck
etc.), By Region, Competition Market Forecast & Opportunities, 2011-2025”,
the tire chemicals market is projected to surpass 42.58 million tons by 2025,
on account of accelerating demand for highly durable tires majorly by passenger
cars, medium & heavy commercial vehicle and OTR tires segment. Tire
chemicals are of various types such as, natural rubber, synthetic rubber,
accelerators, plasticizers, stearic acid, etc. Moreover, Natural rubber and
synthetic rubber were the two leading tire chemicals in global tire chemicals
market in 2015, and this trend is expected to continue through 2025, as natural
rubber and synthetic rubber accounts for more than 50% consumption in global
tire industry. Moreover, global tire chemicals market has been segmented demand
in the basis of tire category, which was dominated by passenger cars 2015 and
the same trend is anticipated to continue through 2025, owing to rising
production and sales of passenger car across the globe.