Kuraray's Rubber Business Faces Headwinds As First-Half Profit Tumbles On Weak Demand
- By TT News
- August 13, 2025
Japan's Kuraray Co Ltd reported a 42 percent plunge in first-half operating profit as its rubber and speciality chemicals business grappled with weakened European demand and inventory valuation losses, prompting the company to slash its full-year earnings forecast.
The Okayama-based manufacturer, known for its synthetic rubber and speciality polymers used in automotive and industrial applications, posted operating income of 26.3 billion yen for the six months ended June 30, down from 45.5 billion yen a year earlier.
Net sales slipped 2.7 percent to 400.0 billion yen, with the company's flagship vinyl acetate segment - which includes rubber-related products - bearing the brunt of the downturn as volumes declined across key markets.
"Sales volume did not increase as much as expected due to the European economic stagnation and other factors, and overall segment income decreased due to the negative impact of inventory valuation differences and higher raw material and fuel prices," the company said in its earnings statement.
The vinyl acetate division, Kuraray's largest revenue contributor, saw operating income tumble 31.9 percent to 29.9 billion yen despite maintaining sales of 202.9 billion yen. The segment includes the company's EVAL barrier resins used in food packaging and automotive fuel tanks, as well as polyvinyl alcohol (PVOH) resins with rubber-like properties for industrial applications.
Kuraray's isoprene chemicals and elastomers business, which produces synthetic rubber compounds, showed signs of recovery with operating losses narrowing to 1.3 billion yen from 4.0 billion yen a year earlier. Sales volumes increased as demand remained firm, particularly in Europe and the United States, whilst operations at the company's Thai manufacturing base stabilised.
However, the broader economic malaise weighed heavily on performance. Rising natural gas costs in the US and Europe - key raw materials for rubber production - further squeezed margins. US natural gas prices averaged USD 3.69 per MMBtu compared with USD 2.21 a year earlier, whilst European gas costs climbed to 41 euros per MWh from 30 euros.
The disappointing first-half results prompted Kuraray to revise down its full-year operating income forecast to 75.0 billion yen from an earlier projection of 90.0 billion yen, though it maintained its annual dividend at 54 yen per share.
Chief Financial Officer Hitoshi Kawamura highlighted inventory valuation differences as a significant drag on earnings, particularly affecting the company's rubber and polymer segments, where raw material price volatility has been pronounced.
Looking ahead, Kuraray expects second-half performance to improve, with operating income projected at 48.7 billion yen compared with 26.3 billion yen in the first half. The company is banking on a gradual recovery in European demand and the benefits of recent capacity optimisations.
The firm is also pursuing strategic shifts in its portfolio, including plans to expand its optical-use PVOH film production line and the acquisition of US-based Nelumbo Inc, whilst discontinuing production of certain acrylic polymers and polyester-related products.
Arkema Unveils Next-Gen Solution For Faster Polymer Curing
- By TT News
- October 15, 2025
Arkema has launched its next-generation solution for polymer curing called Luperox NeatCure. Unveiled at the K 2025 Show, this innovative product is a formulated organic peroxide in granular form, specifically created to accelerate curing times across various processes, including extrusion and injection moulding.
A primary benefit of its dust-free composition is a significant enhancement in workplace safety, minimising the risks associated with handling powdered substances. Developed in response to evolving regulatory demands, this technology enables manufacturers to achieve greater productivity and efficiency. The company says the new solution ensures rapid curing while fully maintaining the performance integrity of the final elastomers and polymers.
Tilo QUINK, Senior Vice President Performance Additives, said, “The launch of Luperox® NeatCure® illustrates our ability to bring responsible innovation to the market, combining safer handling with superior efficiency. We are proud to support our customers with solutions that help them meet both their productivity goals and sustainability commitments.”
Romuald DE HAUT DE SIGY, Global Group President Functional Additives, said, “Luperox® NeatCure® is more than a new product; it’s the breakthrough that will set a new standard in the Cross-linking Organic Peroxides market. Thanks to our advanced formulation expertise, we can deliver a solution that not only optimises curing performance but also ensures the highest level of safety and compliance. This is a decisive step forward to our customers in elastomers and polymers processing.
- Association of Natural Rubber Producing Countries
- ANRPC
- Monthly NR Statistical Report
- Natural Rubber
ANRPC Publishes Monthly NR Statistical Report For August 2025
- By TT News
- October 10, 2025
The Association of Natural Rubber Producing Countries (ANRPC) has released its Monthly NR Statistical Report for August 2025, providing an overview of key developments in the global natural rubber sector.
According to the report, a number of reasons, including limited supply and rising demand, contributed to the volatile pattern in natural rubber prices this month. Consumption was increased by seasonal considerations, especially in China, where stronger demand was evidenced by inventory reductions at key ports. However, tapping efforts were restricted due to manpower shortages and rains in producing regions, which tightened supplies.
Global natural rubber (NR) output is expected to increase slightly by 0.5 percent in 2025 compared to 2024, according to recent data from ANRPC member countries. At the same time, a 1.3 percent increase in demand for natural rubber is anticipated in 2025. As buying demand increased, the market sentiment got more positive, especially when the customary peak season for natural rubber, notably for heavy-duty vehicles and all-steel tyres, began.
Tokai Carbon Finalises Bridgestone Carbon Black (Thailand) Acquisition
- By TT News
- October 10, 2025
Tokai Carbon Co., Ltd. has finalised the strategic acquisition of Bridgestone Carbon Black (Thailand) Co., Ltd. from Bridgestone Corporation and Asahi Carbon Co., Ltd. The transaction, valued at roughly THB 2.05 billion (USD 56 million approximately), was officially completed on 30 September 2025. This move represents a significant expansion of Tokai Carbon's carbon black operations within the key Southeast Asian market.
Subsequent to the deal's closure, the newly acquired entity has been rebranded as Thai Tokai Carbon Product Rojana Co., Ltd. The company's ownership is now held by Thai Tokai Carbon Product Co., Ltd. at 99 percent and Tokai Carbon Co., Ltd. at one percent, making it a consolidated subsidiary. Tokai Carbon has appointed its Executive Officer, Tatsuhiko Yamazaki, as the new Managing Director to lead the organisation.
This acquisition is a calculated step in Tokai Carbon's wider plan to bolster its global presence and reinforce its production and supply chain capabilities. The company anticipates that this will solidify its standing in the international carbon black sector, which serves the tyre, rubber and various industrial markets. While the specific financial effect on its 2025 results is still being assessed, the move is a clear part of its ongoing growth strategy across Asia.
Hana Technologies Inc., a manufacturer of radio-frequency identification inlays, has joined the board of Auburn University’s RFID Lab, marking its deeper engagement in setting industry standards for the technology.
The appointment positions the California-based company, which holds ARC Quality certification, alongside other industry participants in shaping research and standards development at the Alabama-based laboratory, which is recognised as a leading academic centre for RFID testing and certification.
RFID technology uses electromagnetic fields to identify and track tags attached to objects automatically and has seen growing adoption in the retail, logistics, and manufacturing sectors for inventory management and supply chain tracking.
“I am excited and honoured to once again collaborate with the Auburn RFID Lab Board, representing Hana RFID,” said Jeremy Liu, chief technology officer of Hana RFID. “This opportunity allows us to contribute to the future of RFID by ensuring quality remains a top priority. Hana is proud of its strong position in the RFID world, and we are committed to supporting our partners with the finest, smartest products available. Together, we will keep moving the industry forward.”
John Erdmann, president and chief executive of Hana RFID, said: “The Auburn RFID Lab has been a key contributor since the very beginning, helping to create a strong and trustworthy RFID ecosystem. We are grateful for this foundation and see our board membership as a chance to give back to the community. Hana will be a fully engaged member – providing continuous feedback, and sharing our knowledge to ensure RFID adoption continues to grow on a solid, reliable base.”
The company, which operates manufacturing facilities globally, did not disclose the term of the board appointment or specific initiatives it plans to pursue in the role.
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