TOKYO—Zeon Corp. is planning to build an acrylic rubber production plant in Thailand as part of an effort to expand its ACM business.
The plant, which is expected to have an annual capacity of about 5,000 metric tons per year, does not have a specific location, according to a written statement issued to ERJ.
The project is slated for completion in the spring of 2020.
Additionally, Zeon has set aside about $38 million to estable a new Rayong, Thailand-based ACM subsidiary, likely to be named Zeon Chemicals Asia Co. Ltd. It should be established by October and will oversee the planned production plant.
ACM, a specialty synthetic rubber combining high heat and oil resistance, is broadly used in under-hood automotive applications such as transmission seals, gaskets as well as inter-cooler hoses. Zeon expects demand for acrylic rubber to "expand steadily" throughout Asia, led by production growth of internal combustion and turbo-charged engine powered vehicles.