March 22, 2007
Kuraray Co., Ltd.
Kuraray will increase the price of its top brand CLARINO, which holds the world's No. 1 share in the man-made leather industry, on shipments commencing from April 1, 2007. Details of the price increase are as follows.
Although there are current signs of a brief easing in the rapid rise in prices of crude oil and naphtha, prices continue to fluctuate at an unprecedented high level. This has brought about a similar situation in nylon, polyurethane and polyester, the main raw materials for CLARINO.
While the price of raw materials has continued to rise since Kuraray's last price increase in October 2004, Kuraray has set the objective of ensuring a stable supply of its man-made leather products to customers and has consistently striven to reduce costs. However, the continued increase in the price of fuels and raw materials has exceeded the feasible scope of cost cutting, and led to a decline in Kuraray's profitability.
In order to maintain stable supplies against a backdrop of the solid increase in demand, Kuraray recognizes that it must improve profitability in its man-made leather business. Accordingly, the Company will implement the price revision as outlined below.