TSRC to ‘double down’ on SSBR growth amid challenging environment

Taipei – Taiwanese synthetic rubber major TSRC Corp. expects continued challenges and uncertainties in 2026, with the petrochemical and synthetic rubber sectors facing a prolonged industry down-cycle and a “perfect storm” of weak demand, overcapacity and margin pressure.

In a 24 Nov investors presentation, the group said the market outlook for next year remained “modest”, as downstream recovery — including in automotive manufacturing — continues to lag.

Any potential recovery momentum, TSRC warned, is “constrained by uncertainties from tariffs and geopolitical issues”, while excess capacity is likely to persist “for the next few years” until economic growth gradually absorbs oversupply.

TSRC also anticipates further “asset shutdowns” and industry consolidation due to “poor financial returns” by some players.

Against this backdrop, the group said it will continue executing its business strategies “with agility and discipline” to maximise the benefits of its portfolio mix.

This, it said, includes efforts to improve or address under-performing assets.

Furthermore, the group said it will “double down” on investment in high-growth, high-value materials – notably solution styrene butadiene rubber (SSBR) for EV and green-tire applications, and high-value SEBS grades for medical use.

To navigate the downcycle, TSRC said it also intended to deepen partnerships with global key customers and will “explore cooperative opportunities, including M&As," in priority segments.

On profitability, TSRC said it would focus on portfolio optimisation and productivity measures.

The group aims to leverage efficiency gains from its new Shenhua plant and continue ramping output following the relocation project (ERJ report).

It also plans to “execute SSBR new line construction” to support strong growth in SSBR for EV/Green tires.

In medical elastomers, TSRC reported “good progress” in customer qualification processes and said it would move to expedite further approvals at targeted accounts.

For the first nine months of 2025, TSRC said it remained “resilient” despite weak demand, “substantial price competition” and global oversupply.

Revenue for the nine months to end of September rose 2% year-on-year to NT$28.1 billion (€775 million), while gross profit fell 14% to NT$2.74 billion. Operating profit dropped 42% to NT$669 million.

While several product lines experienced downturns, the group said it maintained positive net income, supported by what it called a “resilient business portfolio”.

Sales volume reached “record levels”, driven by the Shenhua relocation project and higher synthetic rubber volumes.

The company also highlighted “solid progress” in SSBR, citing increasing traction in EV and green-tire applications.