September 15, 2005
Kuraray Co., Ltd.
The September 9 explosion and fire in the vinyl acetate manufacturing facilities of Kuraray's Okayama Plant (Okayama City) was the cause of significant inconvenience and worry for nearby residents, Kuraray's customers, and other concerned parties. For this, Kuraray extends its sincere apologies.
The circumstances known at this time and our anticipated response are discussed below.
At present, we are cooperating with the cognizant authorities in their investigation.
The book value of the damaged equipment in the vicinity of the vinyl acetate manufacturing process oxygen mixer, which is primarily electrical instrumentation, is approximately ¥100 million; we estimate a maximum cost of ¥1.0 billion to restore the facilities to operating condition.
We are preparing a forecast of what will be required to recover from the increased expenses accruing from the slowdown in operations.
Once the causes of this accident are thoroughly identified, we will undertake a companywide review of facilities, reconfirm operating standards, conduct thorough safety education, and take other serious measures to prevent reoccurrence.
To prevent effects on the supply of products that use vinyl acetate as a material, we will strive to bring these facilities back on line quickly, purchase vinyl acetate as required, and ask the entire Kuraray Group, including overseas operations, to increase production.