News Releases 2005

Notice : Concerning the Resumption of Operations at Kuraray's Okayama Plant

October 12, 2005
Kuraray Co., Ltd.

Kuraray Co., Ltd. today announced details of the resumption of operations following the explosion and fire on September 9, 2005 at the vinyl acetate manufacturing facilities of its Okayama Plant (Okayama City). Brief details are as follows.

1. Estimated Resumption of Operations

Currently, Kuraray is taking every step to repair facilities, confirm operating safety and acquire all necessary approvals from relevant authorities for the resumption of operations. The Company expects to resume operations toward the end of October and has identified the year-end as a target for full production.

Recommencement of supply of products that use vinyl acetate is scheduled as follows.

(1) Poval(Annual production 96,000 tons) Current production : 20%
November 2005 : 70%
January 2006 : 100%
(2) EVAL(Annual production 10,000 tons) Current production : Preparation underway
November 2005 : 70%
January 2006 : 100%
(3) KURALON(Annual production 40,000 tons) Current production : 20%
November 2005 : 70%
January 2006 : 100%

In the interim, Kuraray is endeavoring to supply products from existing inventories in an effort to minimize inconvenience to customers.

2. Impact on Fiscal 2005 Results
Increased costs relating to the repair of damaged facilities and the drop in production are being offset by insurance and other cover as well as increased production at other Kuraray Group production bases. Accordingly, Kuraray does not anticipate any material impact on fiscal 2005 results arising from the accident at the Okayama Plant.