Zeon Corporation says it has signed a letter of intent to acquire the remaining 40% stake in joint venture firm ZS Elastomers Co from Sumitomo Chemical. The expected completion of the transaction is September 2024, after which ZS will be dissolved, according to Zeon.
ZS Elastomers Co was set up to consolidate both companies’ solution styrene butadiene rubber (S-SBR) businesses in 2017. But in a statement Zeon adds, “However, due to changes in the business environment, both Zeon and Sumitomo Chemical agreed to dissolve the joint venture that is ZSE and decided to operate the business independently.”
Upon completion, Zeon Corporation will own 100% stake in ZS Elastomers Co. As of March 31, 2024, ZS Elastomers Co. generated total assets of ¥12.4 billion, net assets of ¥1.5 billion, sales of ¥1.4 billion, operating income of ¥411 million and net income of ¥442 million.
S-SBR is a material used in the production of fuel efficient tyres. By combining the technological expertise of Zeon and Sumitomo Chemical, ZS Elastomers at that time had said it would strengthen the S-SBR business through developing new products to meet customer needs, enhancing cost competitiveness, and securing a stable product supply.