JSR to add EPDM and S-SBR capacity in Japan, Korea, Europe

Tokyo - JSR Corp is expanding capacity for synthetic rubber production. The company is adding 28 000 tonnes of capacity for EPDM at the Korea Polychem joint venture in Yeocheon, Korea, bringing capacity there to 78 000 tonnes per year and adding 11kt of EPDM capacity at its Kashima plant, bringing capacity there to 36 kt/year. The company also increased capacity of S-SBR at Yokkaichi to 45 kt/year from 35 kt at the end of 2005 and said it intends to increase capacity in Europe through a contract manufacturing deal. JSR is also increasing custom compounding capacity in China.

In the company's report to shareholders presented at its Annual General Meeting, the company said it now owns 50 percent of equity in the Korea-based joint venture Kumho Polychem Co. Ltd. The other shareholders are ExxonMobil Chemical and Korea Kumho Petrochemical Co. JSR added that it intends to "increase capacity at the JV's sole EPDM plant to 78 000 tonnes by August 2007. Thereby we will establish our position, as JSR Group, as a leading supplier of EPDM in Asia." The company did not say when the Kashima expansion was due on stream, but local press reports said the work would be carried out in Summer 2006.

In terms of S-SBR, JSR said it has established a contract manufacturing deal with a European supplier of the material, and intends to "enhance our supply ability of S-SBR in Europe" by means of this agreement.

In yet another expansion, JSR said it has added a new compounding plant in Guangdong province, China to supply automotive component manufacturers with high quality compounds. The company already has compounding units in Tianjin and Fuzhou.

Consolidated net sales of JSR's elastomers business unit grew 11.6 percent, to yen 104 000 million (€717 million), about one third of the group total revenues. Meanwhile operating profits in the elastomers unit soared 61 percent, to ¥11 743 million (€81 million)

The group is steadily transitioning into a compay dealing in more sophisticated products than elastomer polymers, and around half the company's sales now come from its diversified products segment.

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Download JSR report to shareholders (500kb .PDF file)

List of plant capacities from JSR website

Kumho Polychem vision on Polychem website