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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.

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