March 5, 2008
Kuraray Co., Ltd.
Kuraray announces the decision to increase the price of GENESTAR, a heat-resistant polyamide resin, for shipments commencing April 1, 2008.
Kuraray was first in the world to industrialize nonanediamine, a proprietary monomer with a carbon number of nine. GENESTAR is a polyamide resin (Polyamide 9T) that is made using this monomer. It boasts excellent heat resistance, low water absorbency, high abrasion resistance, superior insulation performance and excellent chemical resistance.
In recent years, surface mount technology (SMT) has become increasingly used in the electrical and electronic parts field. Demand for GENESTAR has expanded because its resistance to high temperatures makes it suitable for use with lead-free solder, especially in applications for mobile phones, personal computers, digital cameras and other devices.
At present, the prices of butadiene, GENESTAR's main raw material, and other auxiliary materials are surging due to the soaring crude oil and naphtha prices.
In light of these circumstances, Kuraray is continuously leveraging best practices in its cost-reduction efforts. However, such efforts have proved insufficient to absorb the persistent increase of raw materials and fuel prices. As a result, the Company's domestic and overseas operating revenues from its GENESTAR business have deteriorated rapidly.
In an effort to maintain the stability of supply and improve business profitability amid robust increase in GENESTAR demand, Kuraray has decided to implement an upward price revision for the product, as described below.