August 29, 2006
Kuraray Co., Ltd.
Kuraray announces that the price of Kuraray's heat-resistant polyamide resin GENESTAR will increase for shipments commencing September 15, 2006.
Kuraray was first in the world to industrialize the proprietary monomer Nonanediamine (in which the carbon number is 9). GENESTAR is a polyamide resin (Polyamide 9T) that is made using this monomer. It has excellent heat resistance, low water absorbency, high resistance to abrasion, and chemical resistance.
In recent years, surface-mount technology (SMT) has become increasingly used in the electrical and electronic parts field. Demand for GENESTAR has flourished because its resistance to high temperatures makes it suitable for use with lead-free solder especially in applications for mobile telephones, personal computers, digital cameras and related devices.
The price increase must be seen against a background of continuing high prices for crude oil and naphtha, which have increased the cost of butadiene, GENESTAR's main raw material, as well as secondary raw materials. In these circumstances, the Company has consistently cut costs to the maximum extent possible. However, the current increase in the price of crude oil has exceeded the feasible scope of cost cutting, and led to a worsening of our profitability both domestically and internationally.
In order to maintain future stability of supply amid the rise in demand, and to improve profitability, the Company will implement the price revision as outlined below: