Kuraray

Basic Information

Stock Code
3405
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Tokyo
Establishment Year
June 1926
Listing Year
May 1949
Official Website
https://www.kuraray.co.jp/
TSE Information
TSE Information
Yahoo! Finance
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Overview

Kuraray is a chemical manufacturer founded in 1926 that develops high-performance resins and fiber products domestically and internationally, holding top-class industry status through proprietary technology-based functional materials development.

Current Situation

Kuraray achieved consolidated net sales of approximately 780.9 billion yen and operating profit of approximately 75.5 billion yen for the fiscal year ending December 2023, with overseas sales accounting for about 68% as a global company. Its flagship functional resins include POVAL film for LCD applications with an 80% global share and EVAL for food packaging with 70%, maintaining strong market competitiveness. It addresses diverse industry needs with a wide range of materials, including proprietary artificial leather Clarino and high-performance elastomers. In recent years, it has strengthened its global supply chain through acquisitions of synthetic plants and U.S. companies. To reduce environmental impact, it is developing biomass-derived products, barrier films, and advancing sustainability initiatives. Challenges include settlement losses from the 2018 U.S. EVAL plant fire, but it is securing future competitiveness through R&D and business diversification. Moving forward, it will pursue strategies centered on functional resin market expansion and overseas growth, aiming for sustainable growth through 2030.

Trivia

Interesting Facts

  • Kuraray developed the world's first domestic synthetic fiber Vinylon
  • "Magic Tape" is Kuraray's registered trademark
  • Artificial leather "Clarino" holds high share in the randoseru market
  • LCD POVAL film accounts for over 80% global share
  • Founder Oohara Magosaburo is one of modern Japan's representative industrialists
  • One of the few chemical manufacturers headquartered in Otemachi Tower
  • Changed industry classification from fiber products manufacturer to chemicals in 2007
  • Once operated the wedding venue "Kuraray Shiragiku"
  • Gained attention using ducks and alpacas as CM characters
  • 2018 fire at U.S. EVAL plant led to large-scale litigation
  • Kuraray's corporate emblem stylizes "Nijusan-in" symbolizing humility
  • Overseas sales ratio reached 68% in 2018, advancing globalization
  • KURAFLEX nonwoven products are used in medical fields
  • Acquired synthetic resin plant from German company to expand production base
  • Received exclusion order for activated carbon antitrust violation

Hidden Connections

  • Kuraray and Kurashiki Spinning share founder Oohara family roots but currently have no capital ties
  • "Mirabakesso" CM featured a shear-cut alpaca for heatstroke prevention
  • U.S. subsidiary Kuraray America is a major EVAL resin production base
  • Transactions with many automotive-related companies including Nidec and Toyota
  • Founded aiming for domestic rayon production at inception
  • Corporate emblem philosophy based on humility teachings of founder’s mentor Morita Setsusai
  • Tokyo head office located in Otemachi Tower as a key financial and tech hub in the capital region
  • Supplies numerous essential functional resin components to the global LCD panel industry

Future Outlook

Growth Drivers

  • Expansion of resin products from growing demand for LCD panels and other electronic materials
  • Growth in functional resin market utilizing biomass raw materials
  • Product demand expansion overseas, especially in Asian emerging countries
  • Ongoing development of high-functionality materials for advanced automotive industry
  • Increased demand for environmentally compatible products due to stricter regulations
  • New material creation capabilities from R&D investment
  • Efficiency improvements in global production and sales networks
  • Manufacturing process innovation via IoT and AI utilization
  • Advancement of corporate responsibility for sustainable society
  • Risk diversification and stable growth through diversified management
  • Enhanced response to customer needs
  • Stable supply through resilient supply chain

Strategic Goals

  • Maintain and expand overseas sales ratio above 70%
  • Achieve over 30% sales ratio from biomass-derived products
  • Reduce CO2 emissions by 40% (vs. FY2010)
  • Maintain and strengthen global shares in POVAL and EVAL
  • 20% sales increase from new products and technologies
  • Maintain R&D expense to sales ratio above 5%
  • Achieve highest standards in safety, health, and compliance
  • Activate innovation through promotion of workforce diversity
  • Improve business efficiency through digitalization
  • Strengthen partnerships with local communities

Business Segments

Functional Resin Products

Overview
Develops and supplies versatile products using high-functionality resins to meet advanced technical needs of customers.
Competitiveness
World top-class technological strength and extensive global production bases
Customers
  • Electronics manufacturers
  • Automotive parts manufacturers
  • Food packaging manufacturers
  • LCD panel manufacturers
  • Building materials manufacturers
  • Cosmetics manufacturers
  • Medical device manufacturers
  • Industrial materials manufacturers
  • Agricultural materials manufacturers
  • Chemical trading companies
Products
  • POVAL Film
  • EVAL Resin
  • High-performance elastomers
  • Barrier films
  • Synthetic leather
  • Special resin compounds
  • Medical materials
  • Superabsorbent resins
  • Environmentally compatible materials
  • Adhesives

Chemical Fibers and Nonwovens

Overview
Leverages advanced fiber technology to supply high-quality materials to customers in diverse industrial sectors.
Competitiveness
Proprietary fiber manufacturing technology and superior environmental resistance product lineup
Customers
  • Textile manufacturers
  • Medical supplies manufacturers
  • Automakers
  • Interior manufacturers
  • Industrial materials suppliers
  • Sports goods manufacturers
  • Protective gear manufacturers
  • Agricultural materials manufacturers
  • Filter manufacturers
  • Building materials manufacturers
Products
  • Vinylon fiber
  • Vecran fiber
  • Nonwoven products
  • High-functionality fiber composites
  • Flame-retardant fibers
  • High heat-resistant fibers
  • Functional yarns and yarn processed products
  • Medical nonwovens
  • Industrial filters
  • Protective clothing materials

Trading and Related Services

Overview
Utilizes an extensive network to provide chemical product sales and related services.
Competitiveness
Global procurement capabilities and extensive industry expertise
Customers
  • Domestic and international chemical trading companies
  • Manufacturers
  • Distributors
  • Logistics service providers
  • Environmental service providers
  • Retailers
  • Construction companies
  • Food processors
  • Pharmaceutical manufacturers
  • Resource recycling companies
Products
  • General chemical products
  • Industrial materials
  • Environmentally compatible products
  • Logistics services
  • Packaging materials
  • Functional materials
  • Export/import agency services
  • Technical consulting
  • Materials procurement support
  • Recycled products

Research & Development and Technical Services

Overview
Supports the group's competitive edge through innovative materials and technology development.
Competitiveness
Specialized knowledge across a wide range of research fields and substantial technological accumulation
Customers
  • Kuraray Group business divisions
  • Universities and research institutions
  • National Institute of Advanced Industrial Science and Technology
  • Private companies
  • Public institutions
Products
  • Materials development
  • Manufacturing process technology
  • Applied research
  • Joint research support
  • Technology licensing
  • Patent management
  • Quality control technology
  • Environmental improvement technology
  • Product testing services
  • Production technology support

Competitive Advantage

Strengths

  • World-leading functional resin development technology
  • Diverse product portfolio and proprietary brands
  • Global production and sales network
  • Strong customer base and stable business relationships
  • Aggressive M&A for business expansion
  • High R&D investment and technological innovation capabilities
  • Development capabilities for environmentally compatible products
  • Long years of market experience and reliability
  • Adaptability to diverse industrial applications
  • High-share products backed by proprietary technology
  • Strong intellectual property rights and patent portfolio
  • High-quality manufacturing management system
  • Financial strength and management stability
  • Active overseas expansion and sales base development
  • Initiatives in environmental and social contributions

Competitive Advantages

  • Overwhelming market dominance with 80% global share in LCD POVAL film
  • Technological prowess achieving 70% global share in food packaging EVAL products
  • Market leadership in artificial leather via proprietary brand 'Clarino'
  • Superior delivery times and costs through global production bases
  • Enhanced manufacturing capacity and technological innovation via ongoing M&A and acquisitions
  • Deep penetration into niche markets with high-performance elastomers and nonwovens
  • Broad customer base対応 and long-term partnerships
  • Product development adapting to environmental regulations ahead of competitors
  • Rapid market introduction of new materials through robust R&D organization
  • Reliable product supply via thorough quality management
  • Stable financial base supporting large-scale investments and R&D
  • Enhanced corporate image through community contributions and sustainability efforts
  • Industry-leading intellectual property making imitation difficult
  • Risk diversification across diverse business areas
  • Optimized production efficiency through group-wide resource sharing

Threats

  • Risk of cost increases from global raw material price fluctuations
  • Increased manufacturing process burdens from stricter environmental regulations
  • Intensified competition and price wars in global markets
  • Uncertainty in overseas operations due to geopolitical risks
  • Business risks such as fires and manufacturing accidents
  • Risks related to legal regulations like activated carbon antitrust violations
  • Impact of exchange rate fluctuations on earnings
  • Decline in market competitiveness from delayed technological innovation
  • Production delays from supply chain disruptions
  • Brand risks from information security issues
  • Demand reduction risks from economic downturns
  • Delays in addressing social responsibility and environmental issues

Innovations

2024: Strengthening Development of Biomass-Derived Resins

Overview
Aims for sustainable resource use by developing high-performance resin products from biomass.
Impact
Contributes to environmental load reduction and new market creation

2023: High-Performance Research on Next-Generation Nonwovens

Overview
Advances R&D on stronger, environmentally harmonious nonwoven materials.
Impact
Expected expansion in adoption for medical and hygiene fields

2022: Smart Packaging Material Technology Development

Overview
Develops smart packaging technology using functional resins to reduce food loss.
Impact
Realization of distribution efficiency and environmentally considerate packaging

2021: Expansion of Recycled Resin Technology

Overview
Practicalizes performance enhancement technology for resins compatible with plastic recycling.
Impact
Strengthened contribution to circular economy

2020: Launch of New High-Performance Elastomer Products

Overview
Develops new elastomers with enhanced heat and chemical resistance for automotive components.
Impact
Strengthened competitiveness in automotive market

Sustainability

  • Active promotion of biomass-derived materials
  • Deepening of factory CO2 reduction and energy-saving measures
  • Establishment of product collection and recycling systems
  • Thorough safety and health management and workplace environment improvements
  • Environmental conservation activities in collaboration with local communities
  • Strengthening environmental and social responsibility in supply chains
  • Promotion of green procurement
  • Plastic waste reduction programs
  • Employee environmental awareness education
  • Transparent disclosure and communication of environmental data
  • Acquisition and renewal of international environmental standard ISO 14001
  • R&D investment in sustainable material development