kuraray


News Releases 2005

Establishment of Three-Pronged Activated Carbon Manufacturing and Supply System

July 21, 2005
Kuraray Chemical Co., Ltd.
(The Kuraray Group)

Kuraray Chemical Co., Ltd. now manufactures activated carbon in Japan and the Republic of the Philippines, and is now constructing the third manufacturing facility in China.
The market for activated carbon has been rising at a stable 3% to 4% per year, lifted by both the rising worldwide demand for environmental cleanup and the product's reputation as an eco-friendly recycled resource.
To compete for a share of that demand, Kuraray Chemical is using its advanced manufacturing technology and research and development capabilities to develop new activated carbon products and applications. This has made it necessary for Kuraray Chemical to expand its production of activated carbon, and the Company has decided to build a three-pronged manufacturing and supply system.

Accordingly, in June 2004, at the Tsurumi Plant (Bizen City, Okayama Prefecture) a capital investment of approximately ¥1.0 billion was made in the construction of new facilities, which have the total production capacity of 4,000 tons per year. The facilities were operating at full capacity immediately after operations commenced in December 2004. This expansion lifted domestic production capacity from 18,500 tons per year to 22,500 tons per year.
On the island of Cebu in the Republic of the Philippines, joint venture company Cenapro Chemical Corporation (CCC) will complete the expansion of production capacity by 3,000 tons per year in July 2006, at a cost of approximately ¥300 million. This expansion will boost CCC's production capacity from 10,000 tons per year to 13,000 tons per year.
In April 2004 Kuraray Chemical established wholly owned subsidiary Kuraray Chemical (Ningxia) Environmental Industry Co., Ltd. in Shi Zui Shan, Guangxi Province, which is in China's Ningxia region. A new plant was completed and test production started in the second half of July, and full-scale manufacturing will commence in the second half of August. This plant will primarily manufacture activated carbon from coal, and will at first produce around 1,000 tons per year. It is planned to increase production to 5,000 tons per year within four to five years, and then to 10,000 tons per year.

With this series of capital investments, Kuraray Chemical has built the optimum supply system. This will allow the Company to expand sales in overseas markets, and to strengthen its presence in the domestic market for differentiated products. Activated carbon will be produced from coconut shells in Japan and the Philippines, and from coal in Japan and China.

In May 2005, Kuraray Chemical was selected as an associate director firm of the Japan Inorganic Chemical Industry Association (JICIA), an industry organization composed of inorganic chemical manufacturers. The Company was also selected to chair JICIA's Activated Carbon Subcommittee. As a specialist in the production of activated carbon, Kuraray Chemical will employ this opportunity to contribute to society by fine-tuning its response to the needs of the market, expanding its existing operations, and developing new products and applications.

Kuraray Chemical Co., Ltd.

1. Headquarters 1-12-39, Umeda, Kita-ku, Osaka 530-8611, Japan (Shin-Hankyu Building)
2. President Shobu Minatono
3. Capital ¥600 million
4. Number of employees 216 (As of March 31, 2005)
5. Business activities Manufacture of granulated activated carbon, fibrous activated carbon, molded activated carbon, sheets impregnated with activated carbon, and spherical superabsorbent resin granule; design and production of nitrogen gas separator and activated carbon reprocessing kilns.

Kuraray Chemical, Tsurumi Plant

1. Address 4342, Tsurui, Bizen City, Okayama Prefecture
2. Plant manager Yuji Kodera
3. Number of employees 127 (As of March 31, 2005)
4. Business activities Manufacture of granulated activated carbon, fibrous activated carbon, molded activated carbon, sheets impregnated with activated carbon, and spherical superabsorbent resin granule; design and production of nitrogen gas separator and activated carbon reprocessing kilns.

Cenapro Chemical Corporation

1. Headquarters Cebu City, Republic of the Philippines
2. Plant Cebu City, Republic of the Philippines
3. Established April 1975
4. Capital PHP35 million (Kuraray Chemical 35%, Cenapro 60%, Marubeni 5%)
5. Number of employees Approximately 100
6. Business activities Manufacture of activated carbon from coconut shells

Kuraray Chemical (Ningxia) Environmental Industry Co., Ltd.

1. Location Da Wu Kou Industry Park, Shi Zui Shan, Ningxia, China
2. President Hitoaki Muratoh
3. Capital ¥400 million (Kuraray Chemical 100%)
4. Site area 100,000m²
5. Factory floor space 30,000m²
6. Principal facilities Activated carbon manufacturing equipment, electricity reception and transformer equipment, and exhaust gas treatment equipment
7. Number of employees Approximately 100
8. Business activities Manufacture of activated carbon from coal.