Denka to cease manufacture of speciality ER rubber

Tokyo – Denka Co. Ltd is to exit its Denka ER speciality rubber business, citing declining demand as the automotive industry shifts from internal combustion engine (ICE) vehicles to electric vehicles.

The decision forms part of the Japanese group's ‘Mission 2030’ management plan, which aims to rebuild earnings and optimise its business portfolio by focusing resources on growth areas, said Denka 17 July.

Launched in 1982, Denka ER is a copolymer of ethylene, vinyl acetate and acrylic acid ester that combines heat and oil resistance between that of acrylic and fluorocarbon rubbers.

According to Denka, the rubber has been used primarily in automotive hoses, as well as other automotive and industrial rubber components.

Denka said changes in the automotive market, "including the transition toward electric vehicles (EVs) and the decline in production of internal combustion engine vehicles," meant "future demand growth is unlikely and securing stable earnings would be difficult."

Production at the company's Chiba plant will end in August 2028, with sales continuing until 31 March 2030.

The company said the withdrawal is expected to have a minimal impact on consolidated financial results for the fiscal year ending March 2027.

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