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.
Midas, Asia’s largest manufacturer of tyre retreading materials, has launched O-rings designed for off-the-road (OTR) tyres, aimed at delivering reliable sealing performance in demanding operating conditions.
The O-rings are manufactured using high-quality natural rubber and are formulated to improve physical properties and ensure dimensional stability. According to the company, the product has been tested over many years in harsh environments and is intended to provide consistent, trouble-free performance in OTR tyre applications.
Midas said only REACH-compliant raw materials are used in the manufacture of the O-rings, underscoring its adherence to safety, quality and international regulatory standards.
Founded 56 years ago, Midas supplies tyre retreading materials to customers in more than 60 countries. The company said the launch reflects its continued focus on developing performance-oriented solutions for the global tyre and retreading industry.
Toyoda Gosei Launches Automotive Parts With 20% Recycled Rubber
- By TT News
- January 08, 2026
Toyoda Gosei has successfully commercialised automotive weatherstrips using recycled rubber, starting with the new Toyota RAV4. This marks a significant breakthrough in a field where rubber has historically been difficult to reuse, often ending up incinerated instead of truly recycled. Unlike steel or plastic, rubber recycling requires devulcanisation, a complex process that traditionally weakens the material and leaves behind unpleasant odours.
Through dedicated refinement of its proprietary devulcanisation technology, the company has overcome these longstanding quality hurdles. The advancements have dramatically increased the usable proportion of recycled material in automotive parts from under five percent to 20 percent, an achievement honoured by a Toyota Motor Project Award.
Looking ahead, Toyoda Gosei aims to extend this technology beyond synthetic rubber to include natural rubber, which is used in far greater volumes. The broader corporate ambition is to collaborate with automakers and partners to establish a full circular system. This system would collect and regenerate rubber from end-of-life vehicles, positioning the company as an industry leader in enabling both decarbonisation and sustainable resource circulation.
Michelin Reinforces Polymer Composite Solutions Business With Two Acquisition Projects
- By TT News
- January 05, 2026
Pursuing its strategic goals for 2030, Michelin is actively extending its technological leadership into adjacent, high-value sectors. This expansion is being accelerated through two key acquisitions announced in recent months: Cooley Group and Tex Tech Industries. Both US-based companies are leaders in advanced materials, specialising in high-performance fabrics and coatings, and align strongly with Michelin’s own focus on innovation and quality while bringing complementary geographic and technical strengths.
Cooley Group, marking its centennial in 2026, excels in creating engineered polymer-coated fabrics. Its fully integrated production enables custom solutions for critical applications in healthcare, industrial containment and waterproofing. Similarly, Tex Tech Industries, with over a century of operation, designs and manufactures specialised textiles for extreme demands, including thermal protection systems for aerospace, fire-blocking aircraft interiors and advanced composite materials.
These strategic moves significantly bolster Michelin’s existing position in coated fabrics, notably through its European brand Orca. By integrating Cooley and Tex Tech, Michelin anticipates accelerating its global market reach and increasing the revenue of its Polymer Composite Solutions division by approximately 20 percent, equating to roughly USD 280 million. Given the growing scale of this business, Michelin intends to establish it as a dedicated reporting segment starting in 2026.
The acquisitions, slated for completion in the first half of 2026 pending regulatory approvals, will be transacted in cash, with financial terms currently undisclosed.
Birla Carbon Secures Platinum Medal In EcoVadis Sustainability Rating
- By TT News
- December 27, 2025
Birla Carbon, a leading global manufacturer and supplier of high-quality carbon materials, has been awarded the prestigious Platinum sustainability rating by EcoVadis, ranking it within the top one percent of all assessed companies globally. This honour recognises the firm’s enterprise-wide leadership in integrating sustainability across its operations, innovation and value chain.
The evaluation specifically commended its strong performance across four key areas: Environment, Labor & Human Rights, Ethics and Sustainable Procurement. This achievement is further validated by extensive third-party certifications, with over 75 percent of operations certified to international standards including ISO 14001, ISO 50001, ISO 45001, SA8000 and ISO 27001, underscoring the consistency and strength of its sustainability management systems.
John Loudermilk, President and CEO, Birla Carbon, said, “This Platinum rating reflects the steady progress we are making in embedding sustainability at the core of our business. Our growth strategy is geared towards delivering sustainability through innovation, operational excellence and responsible practices across our global footprint. We continually invest in sustainability and circularity-driven processes, keeping our operations sustainably efficient while creating long-term value for our customers, partners, communities and employees. Our sustainability strategy, Share the Future, serves as a roadmap to a sustainable future and guides our actions towards our aspiration of reaching net zero carbon emissions over the next 25 years. Being recognised among the top one percent of companies globally is a testament to the commitment of our teams worldwide.”
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