20 Nov 2024
Electrification trends as well as emerging markets expected to drive demand over the next two years
Tokyo – Zeon Corp. is targeting a significant earnings growth within its speciality rubber segment by 2026, driven mainly by electrification trends and new emerging markets.
Compared to 2022, Zeon aims to increase earnings by 60% and sales by 30% within its speciality rubber operations, the group announced in an 11 Nov briefing.
The Japanese group listed nitrile rubber (NBR), hydrogenated NBR (HNBR), acrylic rubber (ACM) and epichlorohydrin rubber (ECO) as its speciality grades, which it said are expected to drive growth over the next two years.
According to Zeon, the rapid transition to electric vehicles (EVs) will be a significant growth driver, increasing demand for products such as HNBR and ACM.
Offering heat resistance, durability and compatibility with EV requirements, the elastomers can be used in seals and gaskets for EV powertrains as well as high-performance belts for EV systems.
Furthermore, Zeon intends to supply innovative products, including HNBR belts, to emerging markets like electric motorcycles, to support its growth objectives.
Zeon currently has a production capacity of 75 kilotonnes per annum (ktpa) of NBR with its largest production site, Tokuyama, Japan, having a nameplate capacity of 60ktpa.
For HNBR, Zeon has a total capacity of 9.9ktpa, including a 4.4ktpa capacity in Takoka, Japan and 5ktpa in Pasadena, Texas.
According to the announcement, the group is now on track with a 50% HNBR capacity expansion at its US factory.
Zeon’s total ACM production capacity stands at 22ktpa, split between its Japanese facilities in Tokuyama and Kawasaki (8.5 ktpa each) and Rayong, Thailand (5ktpa).
The Rayong unit, which started operation in 2021, is Zeon’s sole manufacturer of ECO, with a 10ktpa nameplate capacity.
Zeon’s elastomers business unit includes the production of rubbers, latexes and chemicals.
In addition to speciality grades, the group also manufactures styrene butadiene rubber and polybutadiene rubber.
In the fiscal year 2022, the unit delivered overall sales of Yen222 billion (€1.3 billion) and earnings of Yen10 billion.
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