Zeon to transfer medical products business to Kaneka

Tokyo – Zeon Corp. has agreed to transfer its medical products business to Kaneka Corp., following a strategic review of the division’s role within the group.

In a 12 Nov statement, Zeon said it had signed a business transfer agreement covering medical devices supplied by its subsidiaries Zeon Medical Inc. and River Xemex Ltd.

The deal includes products for the digestive and circulatory systems.

Zeon established Zeon Medical in 1989 to commercialise auxiliary artificial heart pumps developed by the group.

The unit was then expanded into treatment and diagnostic devices using the group’s material-processing technologies.

However, Zeon said rising clinical demands required manufacturers to “enhance the performance of existing devices” while also developing “a broader range of products”.

These shifts, it said, had created “challenges to further business growth”.

After assessing the business against group strategy and possible synergies, Zeon concluded that Kaneka was the “most suitable owner”.

Kaneka, according to Zeon, has “advanced technologies, a strong track record, and a broad customer base in the medical products field.”

Zeon stressed that healthcare and life sciences remained one of four priority growth areas under its medium-term plan.

The group said it will continue to focus on high-performance materials and next-generation growth drivers, while pursuing portfolio restructuring to improve capital efficiency.