Tokyo-headquartered Sumitomo Chemical has decided to end production of ethylene-propylene-non-conjugated diene rubber (EPDM) at its Chiba Works in Japan, and to stop selling the synthetic rubber product by the end of March 2023.
To boost the competitiveness of its EPDM business, it has been trying to increase the value contributed to its products and minimize manufacturing costs, according to the company. However, the expenses of maintaining and repairing EPDM production plants, which have been in operation for more than 50 years, are rising year after year. In these circumstances, the company concluded that securing consistent earnings over the medium to long term is difficult.
The company, which has an annual production capacity of 40, 000 tonnes, added that it will continue to focus its efforts on areas where it has a competitive advantage, with the goal of achieving long-term growth through the creation of new value.