Kuraray Plans for New Elastomer Facilities to Meet Optical Sector Needs

Kuraray (TOKYO:3405) (ISIN:JP3269600007) has announced its decision to establish facilities at its Niigata Plant with capabilities of mass producing 5,000 tons of an acrylic thermoplastic elastomer ("the New Elastomer") annually.

The New Elastomer, developed utilizing Kuraray's proprietary technology, possesses transparency and softness, as well as adhesive properties. These characteristics are utilized in the optical and molding material fields, which demonstrates great potential for market growth.

Kuraray is targeting a business scale for the New Elastomer of JPY10 billion in sales in 2018.

The New Elastomer

• A block copolymer of methyl methacrylate (MMA) and butyl acrylate (BA)
• A thermoplastic elastomer possessing both MMA's transparency and weather resistance as well as BA's elasticity and adhesive qualities
• A unique material developed through the proprietary technologies of Kuraray, the first company in the world to successfully achieve its commercial production
• One of Kuraray's "new materials that transform into the future" that meet needs not met by existing materials

Background to Full-Scale Development

• Since fiscal 2004, Kuraray has constructed a pilot plant for the New Elastomer, working to achieve market development and manufacturing technologies.
• From a market standpoint, Kuraray sees promise in three fields: adhesives; film as well as light guide components; and molding materials.

Overview of Full-Scale Development

1. Initial Target Fields and Main Applications
2. Target Fields              Main Applications                  Remarks 

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   (i) Adhesives              Film and tape application        Solvent free,
                                                                                  Non cross-linking process

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   (ii) Film, light guide      Light guides such as               Combines both transparent
       components             LED lighting                          and elasticity properties

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   (iii) Molding materials  Body of electronic devices,   Design, adhesive and
                                      gaskets and grips                  paintability properties

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3. Production Facilities
       Address: 2-28, Kurashiki-cho, Tainai, Niigata 959-2691, Japan
       Production capacity: 5,000 tons
       No. of employees: Approx. 20
       August 2011: Completion of facility expansion
       September 2011: Commencement of operations
       Capital investment: Approx. JPY5 billion
4. Outlook
   Kuraray is aiming for sales of JPY6 billion in 2015 and JPY10 billion in 2018.