Japanese Firms to Establish Singapore Synthetic Rubber Operations

According to a November 28 article in Japan’s Nikkei newspaper, two Japanese chemical companies, Asahi Kasei Corporation and Zeon Corporation, intend to establish synthetic rubber plants in Singapore to cater for growing demand for low rolling resistance tyres.

Asahi Kasei will set up a high-function-rubber plant – its first synthetic rubber production facility outside of Japan – in early 2013. Japan’s third-largest synthetic rubber manufacturer will first set up production lines with an annual output capacity of 50,000 tons – the equivalent of between 30 and 40 million tyres – and then add equipment with the same capacity in 2016. Total investment in the project is said to be approximately 20 billion yen (£135.4 million). Zeon plans to invest 15 billion yen (£101.6 million) in a Singapore based facility capable of producing 50,000 tons of rubber. This plant is anticipated to come on-stream in 2013.

In Japan, Sumitomo Chemical is said to be gearing up to invest around 15 billion yen installing new equipment in a facility it operates in Chiba Prefecture. This upgrade will facilitate a ten-fold increase in capacity at the site to 50,000 tons by 2013.