July 17, 2008
Kuraray Co., Ltd.
Kuraray announces its decision to revise domestic and export prices of EVOH resin (ethylene vinyl alcohol copolymer; Kuraray trademark: EVAL) and EVOH film (ethylene vinyl alcohol copolymer; EF-XL EVAL bi-axially oriented film), for shipments commencing September 1, 2008.
With the release of EVAL in 1972, Kuraray became the first company in the world to develop and commercialize a high-functional resin, which boasts the highest level of gas barrier properties of any plastic (approximately 10,000 times that of general-purpose polyethylene). Given these properties, EVAL is employed for a variety of applications, including as excellent wrapping material for preserving food and containers for cosmetics and chemicals. In the context of the strict gasoline fuel emission controls in recent years, EVAL's use as a material for automotive fuel tanks has been expanding, as it facilitates weight reduction and molding. Furthermore, use of EVAL in floor-heating pipes as well as other home and everyday products has been growing with tight supply and demand continuing worldwide.
Against the backdrop of drastic rises in crude oil prices, the costs of raw materials including naphtha have continued to increase significantly and been higher than the Company's forecast. The price of ethylene, the main raw material used in producing EVAL, has also been climbing sharply.
Furthermore, various expenses, including utilities and distribution costs, have all been rising. Such conditions have nullified the effect of price revisions as well as the scope of the Company's cost reduction efforts, contributing to a steep fall in revenues from operations both domestically and overseas.
In light of such circumstances, Kuraray decided to implement price revisions for EVOH resin (EVAL) and EVOH film (EF-XL EVAL bi-axially oriented film). Details of the price revisions are set out below.
Kuraray plans to revise prices of EVAL in the U.S. and European markets, which have also been impacted by price inflation of raw materials and fuels. It is planned that these revisions, currently under review, will be implemented in the next few days.
Domestic and overseas shipments of EVOH resin (EVAL), EVOH film (EF-XL EVAL bi-axially oriented film)
¥100 per kilogram (EVAL)
¥1,200 per 20μ 500m² EVOH film (EF-XL EVAL bi-axially oriented film)
Shipments from September 1, 2008