June 12, 2008
Kuraray Co., Ltd.
Kuraray Co., Ltd. (hereinafter "Kuraray" or "the Company") announces its decision to revise prices of the polyvinyl alcohol (PVA) resin KURARAY POVAL and the vinyl acetate-based cutting-edge water soluble synthetic resin EXCEVAL, commencing with shipments from July 1, 2008.
Crude oil and naphtha prices continue to surge, as do utility costs including the principal raw material vinyl acetate monomer and secondary material costs.
Because of rising prices for basic raw materials, Kuraray has implemented several price revisions for PVA resin in recent years. However, against the backdrop of vigorous worldwide demand, prices of raw materials continue to soar driving operating margins rapidly downward. At the same time, from the perspective of demand and supply, because demand continues to be brisk both in Japan and overseas, maintaining balanced conditions remains extremely difficult.
Given these factors, and in order to maintain a steady supply and improve profitability, Kuraray has decided to implement price revisions, as detailed below.