News

Last year, the global economy was affected by the continued impact of inflation on demand, particularly in advanced countries. While the American and some Asian economies showed resilience, Europe and China experienced prolonged stagnation beyond expectations. As a result, the overall global economy grew moderately but lacked strength. The situation reaffirmed the importance of addressing challenges that directly and indirectly affect corporate management, such as wars in Ukraine and the Middle East, geopolitical tensions in multiple regions, global warming, and health-related risks.

In addition, elections were held in many major countries, resulting in changes in governments and leadership. Policy changes by the new leadership and other factors are likely to increase uncertainty in the future.

In 2025, the global environment surrounding Kuraray’s management will continue to be unclear, and the situation does not allow for optimism. However, it is important that we continue to aim for growth by adapting flexibly to various environmental changes while securing profits.

This is the 4th year of PASSION 2026, our 5-year medium-term management plan. This year, we must speed up efforts on key issues to achieve our final goals, based on an understanding of progress in plans carried out last year and changes in circumstances. If there are strategies or measures that require adjustment, we should not hesitate to revise them.

Progress against initial plans varies in each division and group company, but all of our organizations and business entities must continue to implement measures to improve our capital efficiency, concentrate resources into the right areas and grow more quickly. Painful reforms may be necessary to execute some important topics such as “Business Portfolio Enhancement,” but we must approach them with a positive attitude as reforms that will lead to Kuraray’s ideal future state.

Advances in digital technology, including AI, lifestyle changes and increasing awareness of environmental issues will lead to many new business opportunities for us. We must take care not to miss these opportunities and act boldly and proactively without being bound by conventional ways and thoughts. We must always be ready to move quickly so we can grow our new businesses.
In regard to the “three challenges” in PASSION 2026, ―“Sustainability as an Opportunity,” “Innovations Starting from Networking” and “Transformation of People and Organization,”― we will continue to enhance and advance company-wide activities. Engagement with these challenges is steadily expanding and deepening thanks to all of your efforts, but actions that involve changing awareness take time. Anything that can be achieved in the short term should be executed quickly, but medium-to-long term challenges will require persistence and resolve. Remember this and be patient when necessary while continuing to steadily implement change. I ask each of you across Kuraray organizations and locations to take ownership of the “three challenges” and actively take an interest in and participate in specific activities.

In recent years, stakeholders have been paying close attention to human rights violations by corporations. The Kuraray Group has already declared its corporate principles and policies through the “Our Commitment” corporate statement and the “Compliance Handbook,” but last year, we further established the “Kuraray Group Human Rights Policy” to clarify our position and initiatives on human rights. This policy aims to encourage respect for human rights to take root, through the Plan-Do-Check-Act process of assessing the risk of human rights violations in our business activities, developing countermeasures and verifying and announcing the results. We plan to implement concrete actions, starting with a questionnaire on human rights, and ask for your understanding and cooperation.

We have conducted a review of the results of the investigation into the 2018 fire at Kuraray America’s EVAL plant. As an initiative that started last year, we are sharing an understanding of the causes of the incident and prevention measures. We will promote activities globally to make sure such major incidents will never happen again. We must go beyond the direct and superficial causes of the incident and achieve a deep understanding of the underlying context, including our corporate culture, and address issues that likely affect other matters as well. Everyone at all of our production sites, R&D sites and business offices globally must maintain a strong awareness that "safety is the cornerstone of everything we do.” As we engage in our work, I would like all of us to think deeply about safety and sharpen our awareness, so we can aim for a company that is safe and without accidents. Together, we can create "a safe workplace and a company in which everyone can work with confidence." I ask you all for your cooperation and commitment.

In closing, I’d like to state that my vision is of a positive cycle where each member of the Kuraray Group grows by engaging in their responsibilities with autonomy while upholding high ethical values and a strong sense of responsibility; and where the company, as the sum of its members, continues to evolve while creating value for society. I ask you all to think and act proactively without fear of failure. In this way, I believe the Kuraray Group will continue to be a creative and dynamic corporate entity, and that ideas that lead to innovation and change will arise in various situations, leading us to great success. We must all work together as One Kuraray this year, so we can lead the Kuraray Group to a stronger and more vibrant future.

I wish everyone in the Kuraray Group worldwide and their families a healthy, happy and prosperous year.