Kuraray Co., Ltd., based in Chiyoda-ku, Tokyo, under the leadership of President Hitoshi Kawahara, has announced a strategic decision to optimize its methacrylic resin business's production capacity at the methyl methacrylate (MMA) plant. This initiative will also involve scaling back production and sales volumes for MMA and certain other downstream products starting from July 2025. For over six decades, Kuraray's Niigata Plant has been a cornerstone in the production of MMA and methacrylic resins, integral components in the methacrylate chain of products. However, recent years have seen a challenging market landscape marked by increased competition and persistent oversupply dynamics.

The decision to optimize production stems from a need to adapt to these market challenges and ensure sustainable profitability amidst rising maintenance and renewal costs linked to aging facilities. Kuraray aims to enhance its competitive edge by strategically adjusting its product mix and reducing production capacities while simultaneously optimizing facility maintenance costs. This strategic pivot is aimed at securing long-term business continuity and maintaining a reliable supply of products for its customers.

As part of this strategic realignment, Kuraray plans to halve the current annual production capacity of MMA from 67,000 tons to better match market demand. This adjustment also includes ceasing external sales of MMA, focusing instead on optimizing internal operations and supply chain efficiencies. Furthermore, the company intends to reduce the production capacity of other downstream products like ammonium sulfate and methacrylic resin molding materials. These measures are designed to streamline resource allocation, improve operational efficiency, and ensure that Kuraray remains agile in responding to market fluctuations and customer needs.

Kuraray's commitment to sustainability and efficiency underscores its proactive approach to business management. By aligning production levels with realistic market demands and enhancing cost-effectiveness in facility management, Kuraray aims to navigate the complexities of the global market while maintaining its reputation for quality and reliability. This strategic adjustment not only aims to strengthen Kuraray's market position but also underscores its dedication to sustainable growth and responsible corporate stewardship in the chemical industry.

In its medium-term management plan, PASSION 2026, the Kuraray Group has prioritized upgrading its business portfolio. This includes strategically allocating resources to core businesses and identifying operations for downsizing or divestment. Kuraray remains committed to reshaping its business and product lineup, balancing social and environmental considerations with economic goals to enhance its portfolio's sophistication.

Kuraray Co., Ltd., established on June 24, 1926, operates with a capital of 89 billion yen as of December 31, 2022. The company employs 4,427 individuals in non-consolidated roles and 11,906 in consolidated positions as of December 31, 2023. Kuraray's main business segments include Resins and Chemicals, as well as Fibers and others, reflecting its diverse operations in the chemical and fiber industries.