Tokyo – Zeon Corp. is planning to build an acrylic rubber (ACM) production plant in Thailand as part of a move to expand its ACM business.
In a written statement to ERJ, the company said the location of the plant is not yet determined but confirmed that the unit will have the capacity to produce 5,000 tonnes per annum.
Completion date is set for early spring 2020, the Japanese materials supplier informed ERJ.
In addition to the production unit, Zeon will set up a new Rayong-based ACM subsidiary – likely to be named Zeon Chemicals Asia Co. Ltd – to handle sales and production.
The subsidiary is set to start operation in October with an initial paid-in capital of THB1,250 million (€33 million).
ACM is a speciality synthetic rubber combining high heat and oil resistance. The material is broadly utilised in under-hood automotive applications such as transmission seals, gaskets as well as inter-cooler hoses.
Zeon expects demand for acrylic rubber to “expand steadily” in Asia, led by production growth of internal combustion and turbo charged engine powered vehicles.