Tosoh looking to expand chloroprene rubber capacity

Tokyo – Tosoh Corp. is considering an expansion of its chloroprene rubber (CR) production capacity to tap into expected medium- to long-term growth in demand.

The Japanese group outlined the plan in its fourth-quarter results on 13 May but did not disclose details of the potential capacity increase.

CR demand began to recover during the fiscal year ended 31 March, leading to higher shipments, although rates varied by region, Tosoh reported.

The company’s petrochemical group – which includes CR operations – posted an 11.5% year-on-year increase in sales to Yen204.8 billion (€1.2 billion).

Segment operating income rose 33.1% to Yen14.3 billion, supported by higher sales of CR and ethylene and 'improved terms of trade' for polyethylene resin.