May 21, 2001
Kuraray Co., Ltd.
As part of the earnings-enhancement measures under our medium-term business plan called "G-21", which started from April this year, the Company will transfer its clothing textile business to Kuraray Trading Co., Ltd. in April 2002, and will spin off the polyester filament production division at the Saijo Plant in Ehime Prefecture in October 2001.
The Company's polyester filament production business has formed the core of its fiber business since the start of production in 1969. In recent years, however, it has experienced very difficult conditions, suffering deficits in fiscal 1998 and 2000, under the impact of a slump in domestic consumption and an increase in the inflow of imports. On the other hand Kuraray has retained an excellent reputation in the market for its long pursuit of functionality in its polyester products and its development of unique polymer products such as an antibacterial deodorizing fiber, and the EVOH fiber SOPHISTA.
Kuraray Trading Co., Ltd., a wholly owned trading company, is the biggest handler of the entire range of Kuraray products. Of particular note is that in its apparel-related operations it has a strong track record not only in the sale of Kuraray products, but also in extensive and original development of composite materials incorporating Kuraray polyester and other fibers, and secondary products.
Today, the Japanese polyester industry has an excellent reputation globally for its development progress, and within the industry Kuraray's outstanding capabilities continue to be held in high regard. Nevertheless, in the shrinking Japanese market, affected by factors such as an increasing influx of imports, we concluded that it would be difficult to maintain the profitability of these operations without further enhancing competitiveness. In order to put into practice the market-in approach included in our "G-21" medium-term management plan, we will transfer our textile business and carry out operations through a new structure - to include the development of secondary products - more closely in tune with the market.
The following are the objectives of this transfer of the business.
This transfer of the business will be accompanied by the spin-off of the Saijo Plant's polyester filament production division.
The following are the objectives of this spin-off.
|Implementation date||April 2002|
|Operations affected||All operations in the field of textiles for clothing use
(Kuraray Trading will not engage the development, manufacture, and sale of unprocessed polyester filaments)
|Employees to be transferred||approx. 70|
|Transferred sales||approx. ¥25 billion|
|Establishment date||October 2001|
|Company name||Kuraray Saijo Co., Ltd. (tentative)|
|Address||892 Tsuitachi, Saijo, Ehime Prefecture (within the present Saijo Plant site)|
|President||Takeshi Futami (currently General Manager, Saijo Plant; tentatively scheduled)|
|Capital||To be determined|
|Head office||2-5-4 Hiranomachi, Chuo-ku, Osaka|
|Capital||¥1.5 billion (Kuraray 100%)|
|Total sales||¥78 billion (fiscal year ended March 2001)|
|Fiber-related sales||approx. ¥40 billion (fiscal year ended March 2001)|
|Employees||220 (as of March 31, 2001)|
|Activities||Trading company specializing in such fields as clothing-related products, industrial-use fiber materials, and chemical products|