14 Jun 2024
Japanese groups to dissolve the SSBR joint venture by 30 Sept, before it becomes a 'wholly owned' subsidiary of Zeon
Tokyo – Zeon Corp. is planning to take over the full ownership of ZS Elastomers, a solution styrene-butadiene rubber (SSBR) joint venture with Sumitomo Chemical.
As part of the ‘absorption merger’ move, Zeon will dissolve the JV and then make it a ‘wholly owned subsidiary’ on 1 Oct, Zeon announced 12 June.
According to Zeon, the partners initially intended to 'integrate' their SSBR manufacturing functions together.
However, it said, due to “changes in the business environment,” both companies agreed to dissolve the JV.
As a result, the two sides will sign a ‘share transfer agreement’ on 14 June and dissolve the JV by 30 Sept, Zeon added.
The operations will then be 'absorbed by Zeon' on the next day.
Operational since April 2017, ZS Elastomers is based in Chiyoda-ku, Tokyo 60% owned by Zeon and 40% owned by Sumitomo Chemical.
During the fiscal year ended 31 March, ZS Elastomer generated sales of Yen1.5 billion (€8.8 million) and operating income of Yen411 million.
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