Zeon aims to more than double elastomer earnings by 2026

Tokyo – Zeon Corp. has set out details of the second phase of its medium-term business plan, under which it aims to raise profitability and “polish up” existing businesses.

Under the strategic plan, the Japanese group aims to promote ‘structural reform’ with emphasis on capital efficiency within its elastomers business unit.

With sales of Yen222 billion (€1.5 billion), the synthetic rubbers, latices and rubber chemicals unit contributed 57% of group sales in fiscal 2022, ended 31 March.

Under the 2023-26 plan, the elastomers unit’s share of overall sales is expected to reduce to 48%, at Yen244 billion, said Zeon in a 7 March presentation.

Operating income for the unit, however, is targetted to reach Yen23 billion, up from Yen10 billion reported last year and Yen7 billion expected this year.

To achieve its targets by implementing “active new investments” and expanding R&D.

This will be part of a Yen220-billion investment plan group-wide, including Yen170 billion in new projects and Yen50 billion for maintenance and renewal.

The announcement on 7 June highlights the second phase of Zeon’s 10-year growth plan through to 2030.

During the first phase – 2020 to 2022 – Zeon invested, among other projects, in carbon neutral processes as well as the expansion of production capacity for its hydrogenated nitrile rubber.

The company completed a 10% increase of capacity for Zetpol HNBR production at its facility in Takaoka, Japan.

Also, the group expects to complete a 25% HNBR capacity expansion at its plant in Texas by 2025.