News Releases 2006

Organizational and Executive Personnel Changes (as of June 16, 2006)

June 15, 2006
Kuraray Engineering Co., Ltd.
(Kuraray Group)

Kuraray Engineering Co., Ltd. (Kuraray Engineering) announces the following organizational and executive personnel changes.

1. Objectives and Main Features of Organizational Changes

On April 1, 2006, Kuraray Engineering transferred control of its manufacturing facility management operations (responsibility for investment in and maintenance of Kuraray's plants) to Kuraray Co., Ltd., forming a structure that specializes in work commissioned from other companies and Kuraray's investments in large-scale facilities. The organizational and personnel changes listed below were implemented with the aim of performing engineering tasks more effectively within a more streamlined organization.

  • (1) Rename the Engineering Division as the Business Development Division, which has the Marketing Dept. and the Technical Dept. to respond to customer's technical matters.
  • (2) Close down the Office of Technology, consolidate its principal functions within the Business Development Division.
  • (3) Close down the Plant Management and Engineering Division, establish the new Project Management Division to oversee Kuraray's investments in large-scale facilities and plan stronger collaboration with Kuraray.
  • (4) Carry out structural reforms within the Engineering Division.
    • (i) Establish the Construction Management Dept. to oversee on-site safety management and quality management
    • (ii) Split away the Systems Group, which currently plays a significant role in engineering operations, from the Electric and Instrument Dept. by forming the System Engineering Dept.
    • (iii) Establish the Engineering Works Dept. and aim to make matters concerning general affairs, personnel and accounting within head office more efficient.

2. Executive Personnel Changes

(1) Changes in Executive Officers (Planned)

Representative Director and President Masami Tani (Currently: Director and Vice-President)
Managing Director Yoshifumi Fujioka (Currently: Director)
Managing Director Hidekazu Ito (Currently: Director)

(2) Retiring Directors (Planned)

Representative Director and President Takeshi Futami
(To become Kuraray Engineering Co., Ltd. Counselor (planned))
Managing Director Kaoru Fujiwara (To become part-time Director(planned))
Director Akira Matsunaga (To become part-time Director(planned))

(3) Retiring Corporate Auditor (External)

Corporate Auditor Tatsuya Nakano

(4) New Corporate Auditor (External)

Corporate Auditor Tsutomu Yabuta (Currently Managing Director,Kuraray Co., Ltd.)

(Reference) Kuraray Engineering Co., Ltd. Overview

1. Business activities All types of plant construction General engineering work
2. Annual sales ¥30.6 billion (Fiscal year ended March 31, 2006)
3. Capital ¥450 million (Kuraray Co., Ltd. 100%, unlisted)
4. Number of employees 125 (as at June 2006)
5. Representative Director and President Takeshi Futami
6. Headquarters Shin Hankyu Building 1-12-39 Umeda Kita-ku Osaka, Japan