Tosoh Invests 75 Billion Yen to Expand Chloroprene Rubber Production Capacity

Tosoh Corporation announced that it will invest 75 billion yen to build a second production facility in Nanyang Industrial Park, Shunan City, Yamaguchi Prefecture, Japan to increase its chloroprene rubber production capacity to meet the growing global demand for chloroprene rubber.

Construction work will start in 2027, and commercial production is scheduled to start in spring 2030. After the new plant is put into operation, the Japanese group's Skyprene brand chloroprene rubber production capacity will increase by 22,000 tons per year.

Chloroprene rubber is a high-performance functional polymer and a value-added material in Tosoh's chemical chain business. It is widely used in automotive hoses, belts, industrial parts, adhesives and medical gloves. With excellent oil resistance, weather resistance and flame retardancy, this special synthetic rubber has important applications in many industries.

Tosoh's expansion aims to respond to global demand growth, ensure stable supply, and improve profitability by expanding production capacity.

As of June 2025, the Japanese chloroprene rubber market price remains in the range of US$7,000-7,200/ton, which has rebounded from the end of 2024. The price increase is mainly affected by the high price of butadiene, the rising domestic energy and logistics costs, and the general increase in manufacturing costs. Some companies, such as Bridgestone, have begun to increase the prices of related products.

At present, Japan's chloroprene rubber production capacity is concentrated in a few companies, among which Tosoh is the leader. Against the backdrop of the expansion of the electric vehicle industry and the recovery of industrial manufacturing, downstream demand continues to grow, and tight supply and demand support prices, which also prompts Tosoh to accelerate production expansion to consolidate its future market position.

The investment in the construction of new production facilities reflects Tosoh's optimism about the global specialty rubber market, and is also in line with the current trend of stable and positive development of the Japanese chloroprene rubber market. Tosoh's expansion plan strengthens its market expectations, helps stabilize the global supply pattern of high-end chloroprene rubber, and consolidates Japan's international leading position in this field.