Japan's Kuraray cuts MMA output amid market challenges

Kuraray Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo: President Hitoshi Kawahara) hereby announces its decision to optimize the production capacity of its methacrylic resin business’s methyl methacrylate (MMA) plant. The Company also announces that the production and sales volumes for MMA and some other downstream products will be reduced from July 2025 as a result of this change.

Purpose and Background

Since 1959, Kuraray’s Niigata Plant has been manufacturing MMA and methacrylic resins and other such products that are downstream in the methacrylate chain. In recent years, however, the competitive structure of the market has deteriorated due to changes resulting in an ongoing oversupply. At the same time, maintenance and renewal costs have increased due to the aging of facilities, making the business environment more challenging.

To secure profitable business continuity and a stable supply of products into the future, we have come to the conclusion that it is essential to strengthen our competitiveness by optimizing the product mix by reducing production capacity while bringing down the cost of facility antiaging measures.

Production capacity and supply system

MMA:

Halve the current production capacity of 67,000 tons/year and cease external sales.

Downstream products:

Reduce production capacity of ammonium sulfate and methacrylic resin molding materials.

Implementation period

From July 2025 (tentative)

The Kuraray Group has positioned the upgrading of its business portfolio as a key measure in its medium-term management plan, PASSION 2026, and is proceeding with the focused allocation of resources to core businesses and identification of businesses to be downsized or divested. We will continue to reconfigure our business and product mix while giving due consideration to social and environmental value and economic value, thereby building a more sophisticated portfolio.

Note: The content of this press release has not been edited by Fibre2Fashion staff.

Fibre2Fashion News Desk (HU)