Zeon Corporation and Visolis Inc. have formalised their partnership by signing a binding term sheet, marking a pivotal advancement in the commercialisation of bio-based isoprene monomer and sustainable aviation fuel (SAF).

This collaboration, which now moves from technology verification towards project implementation, is built upon the progress made since their initial memorandum of understanding in March 2024 and the subsequent joint feasibility study announced in April 2025. Bio-based isoprene monomer serves as an essential component in the production of synthetic rubbers and various other materials, while SAF is increasingly recognised as a critical next-generation fuel for reducing carbon emissions within the aviation industry.

The newly established term sheet outlines a foundational agreement on the key elements required for a final investment decision. These include defining the business structure and the respective roles of each company, establishing technology and development strategies and advancing detailed engineering for the proposed production facility. Furthermore, the agreement covers the evaluation of potential sites, the process for engaging with suppliers, securing necessary regulatory approvals and planning the financing pathway.

The envisioned facility is set to commence commercial-scale output after successfully demonstrating mass production capabilities for biomass-based isoprene and SAF, utilising Visolis’ proprietary technology. Both companies are now committed to expediting the path to full-scale production and ensuring a steady supply of these sustainable products to the global market.

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Kumho Petrochemical Group is steering its business towards research-driven, higher-value outputs as oversupply and soft demand continue to weigh on the worldwide petrochemical sector. The Seoul-based group outlined plans to boost spending on speciality chemicals, sustainable materials and novel production methods, a push intended to lift profits while building a foundation for future expansion.

Underlying the move is a deliberate evolution in the group's identity, from a bulk materials vendor to a provider of technology-backed solutions that address shifting customer requirements and stricter environmental rules. A central element of that effort involves widening the speciality lineup, exemplified by added capacity for solution styrene butadiene rubber, a synthetic rubber that enhances durability, rolling resistance and tread wear in high-performance electric vehicle tyres.

Environmental initiatives form another pillar. Facilities built by the company can trap approximately 76,000 metric tonnes of carbon dioxide each year, while separately developed technology turns recycled acrylonitrile butadiene styrene sourced from scrapped household appliances into automotive-grade interior components that satisfy performance standards and generate fewer emissions than conventional methods. The group has also joined forces with POSCO Future M and BEI on anode-free lithium-metal battery development.

Parallel technology-focused programmes are underway at affiliated units. Kumho P&B Chemicals is formulating water-based epoxy resins that curb volatile organic compound releases while incorporating more bio-based inputs to reduce carbon intensity. Kumho Mitsui Chemicals is advancing bio-based polyurethane systems and electric vehicle materials, alongside debottlenecking work to add 100,000 tonnes of annual methylene diphenyl diisocyanate capacity. Kumho Polychem, meanwhile, is targeting ethylene propylene diene monomer through low-temperature polymerisation paired with energy-efficiency improvements.

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Birla Carbon has confirmed a price increase of up to 15 percent for its Speciality Materials products across Asia, scheduled to take effect on 1 October 2026. The company pointed to significant and sustained rises in feedstock costs, driven partly by ongoing geopolitical instability and disruptions in global feedstock markets, as the reason behind the adjustment.

Although Birla Carbon pursued operational efficiencies, supply chain optimisation and disciplined cost management to soften the impact, the scale and persistence of the cost escalation left a price adjustment unavoidable. The company's sales teams will engage customers directly to explain the details and help them navigate the transition.

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ACE Laboratories, an independent ISO/IEC 17025-accredited polymer testing laboratory, has partnered with Abdallah Consulting, LLC, a prominent tyre pyrolysis advisory firm, to introduce VericarbSM. This independent certification programme verifies that materials marketed as recovered carbon black (rCB) meet established criteria for rCB.

Recovered carbon black, derived from end-of-life tyres via pyrolysis, serves as a sustainable substitute for virgin carbon black in rubber and polymer applications. However, the emerging market has lacked the standardisation and independent verification that established supply chains provide. VericarbSM addresses this gap through independent material characterisation and rubber performance data, offering stakeholders a consistent basis for evaluating rCB products.

For producers, certification accelerates market entry and improves buyer approval rates. Consumers gain more capable suppliers and reduced evaluation time, while investors benefit from clearer volume sizing and fewer costly test failures. The programme is jointly administered by both organisations.

Erick Sharp, CEO, ACE Laboratories, said, “The rCB market has enormous potential, but growth has been held back by uncertainty about material quality and consistency. VericarbSM gives producers a way to prove their product and gives buyers the independent data they need to say yes.”

Dave Abdallah, Founder, Abdallah Consulting, said, “One key reason for the delayed growth of recovered carbon black is lack of product performance information in the customer’s language. ASTM standards are critical; in fact, most testing done in the process follows ASTM methods. But customers relate to a product better when its performance is shown in applications relevant to them. VericarbSM solves the language issue by showing verified rCB in terms of rubber performance while simultaneously adding credibility via third-party analysis and reporting.”

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Zeon Corporation established Zeon Chemicals Kurashiki Co., Ltd. on 23 July 2026 to take over the acrylic rubber operations of fellow group firm Tohpe Corporation. The new entity, headquartered in Kurashiki City, Okayama Prefecture, is wholly owned by Zeon with paid-in capital of JPY 10 million and is led by representative Koji Minami.

On 21 August, Tohpe and the new subsidiary signed an absorption-type company split agreement, prompting Zeon to begin the procedures required under the Companies Act. Operations at the new company, focused on manufacturing and selling acrylic rubber and related activities, are scheduled to commence on 30 October 2026.

Acrylic rubber, known for its heat resistance, is used in automotive components including oil seals and hoses. The Zeon Group already maintains four production sites across Japan, United States and Thailand, forming a global supply network for the material.

The restructuring follows Zeon’s 11 May 2026 announcement that it would transfer Tohpe shares to NATOCO Co., Ltd. of Miyoshi City, Aichi Prefecture, as part of Tohpe’s paints business divestiture. Tohpe’s acrylic rubber operations, which complement Zeon’s Elastomers Business, will now be positioned as a key specialty rubber manufacturing site, with closer operational coordination intended to strengthen Group competitiveness and corporate value.

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