JSR completes sales of elastomers unit to Eneos

TOKYO—JSR Corp. has completed the sale of its elastomers business to Japanese energy group Eneos Corp.

The transfer of stocks to Eneos completed April 1 and will enable JSR to narrow focus on semiconductor materials and life sciences as "core growth pillars," JSR said in an April 1 statement.

The business will be relaunched as Eneos Materials Corp.

The two parties announced the deal—with an enterprise value of $927 million (Yen 115 billion)– last May.

JSR's elastomers business posted an operating loss of $92 million, on 20 percent lower sales of $1.2 billion for the fiscal year ended March 31, 2021.

The unit contributed about 21 percent of total JSR group sales in fiscal year 2020 and includes a portfolio of styrene-butadiene rubbers (ESBR and SSBR), polybutadiene rubber, polyisoprene, nitrile rubber, butyl rubber, ethylene-propylene rubber and thermoplastics elastomers.

At the time of the purchase, Eneos said a key reason behind the acquisition was the company's SSBR materials, which it said are "indispensable to the mobility industry."

"Eneos expects tires to be needed regardless of changes in (vehicle) power sources and forms, and (the) elastomers business is a field where growth can be expected in the future," Eneos said.

The acquisition is part of Eneos' 2040 long-term vision, which sees the group focusing on high-performance materials as a growth area.

"By acquiring technology in new core areas for our materials business, Eneos will be able to provide high-performance materials that support various industries including the mobility industry," it added.

Formerly JXTG Nippon Oil & Energy Corp., Eneos is based in Tokyo and is a leading Japanese petroleum company.