Kuraray Announces Restructuring of Nonwoven Fabrics Business

Kuraray Co., Ltd. has announced a strategic restructuring of its nonwoven fabrics business. The company will be discontinuing its dry-laid nonwoven fabrics operations entirely and significantly reducing production capacity for meltblown nonwoven fabrics. This decision aligns with Kuraray's broader corporate strategy to optimize resource allocation and focus on core business areas with higher growth potential.

The facilities which will undergo shutdowns or downsizing includes Kuraray Kuraflex Co., Ltd.'s Okayama Plant with the Production of dry-laid nonwoven fabric which will end in December 2024, with sales concluding by March 2025. Additionally, the production lines for meltblown nonwoven fabric at the same Okayama Plant were halted by the end of June 2024, and production was consolidated at Kuraray Co., Ltd.'s Saijo Plant. These changes reflect a strategic realignment of operations to enhance efficiency and streamline production capabilities across the company's facilities.

The Kuraray Group has identified the enhancement of its business portfolio as a critical component of its medium-term management strategy, PASSION 2026. As part of this plan, the company is strategically allocating resources to strengthen its core businesses and is actively identifying areas for downsizing or divestment. This approach aims to refine the company's business and product mix by prioritizing both social and environmental value alongside economic considerations. By doing so, Kuraray is committed to evolving its portfolio into a more sophisticated and effective structure, ensuring long-term sustainability and competitive advantage in the market.

Kuraray possesses a proven track record of over 52 years in the manufacturing and commercialization of dry-laid nonwoven fabrics, complemented by a 35-year history in the production of meltblown nonwoven fabrics. However, the business environment has recently become increasingly challenging due to oversupply caused by facility expansions by other companies in Asia and a decline in domestic demand. After a thorough evaluation of our future business strategy, we have concluded that a significant restructuring of our operations is necessary. To address these issues, we will reduce production capacity and concentrate our management resources on the meltblown nonwoven fabric sector. This strategic focus aims to streamline operations, enhance efficiency, and better align with current market demands.

Established in 1926, Kuraray emerged as a trailblazer in the synthetic materials industry through its early commercialization of rayon, a revolutionary technology at the time. Demonstrating its pioneering spirit, the company further solidified its industry leadership by achieving the global first-mover advantage in polyvinyl alcohol (PVA) fiber under the KURALON™ brand in 1950. This landmark accomplishment not only positioned Kuraray as a dominant force in the synthetic fiber market but also catalyzed the development of Japan's burgeoning synthetic fiber sector.