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.

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Mathe Group, a specialist in recycling radial truck tyres, has undertaken a significant multi-million-rand investment in advanced machinery designed to transform steel recovery into a major revenue source. This strategic upgrade focuses on extracting high-purity, or ‘clean steel’, for export to international markets such as India and South Korea, marking a shift from treating steel as a mere by-product to valuing it as a key income stream.

A central part of this investment involves the installation of state-of-the-art de-beading machines. Unlike older methods that damaged the steel rings embedded in tyre sidewalls, this new technology removes the beads entirely intact and free of rubber. This preserves their quality, making them easier to process and package, and allows them to be sold as a premium product for industrial applications like blasting, replacing virgin steel. The first units are already operational, with a third machine scheduled for delivery. These new, electrically-driven de-beaders will also lower maintenance costs and reduce emissions compared to the previous oil-hydraulic systems.

Furthermore, the company is commissioning an in-house clean steel mill with an integrated automated packaging line. Currently, extracted steel is sent to India for cleaning before being forwarded to South Korean manufacturers. By bringing this cleaning process to its Hammarsdale facility, Mathe Group will drastically reduce rubber contamination from 10 percent to under two percent. This enhanced purity means the steel can be bagged and loaded directly into shipping containers for the port of Durban, commanding double the price on the international market because it requires no further reprocessing. The upgraded system is expected to export 108 tonnes of clean steel weekly.

This comprehensive re-engineering of the production process recovers an additional eight percent of rubber crumb from each tyre and is set to create new jobs. The new steel extraction system is projected to be fully operational by January 2026.

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Cabot Corporation has released its 2025 Sustainability Report, detailing the company's advancements in 2024 and introducing a new set of objectives for 2030. The report demonstrates significant momentum, with Cabot having already met 11 of its 15 sustainability targets for 2025 ahead of schedule and anticipating further progress on the remaining goals this year.

Notable achievements from the reporting period include a community investment of USD 10 million in its local operating areas and a reduction in greenhouse gas (GHG) emissions intensity by more than five percent, which surpassed the 2025 goal early. The company also reported its highest level of beneficial waste reuse in over six years, diverting significant material from landfills. In product innovation, Cabot launched the REPLASBLAK family, its first black masterbatches to receive International Sustainability & Carbon Certification (ISCC) PLUS. Furthermore, the company reinforced its commitment to reducing plastic pellet loss by securing Operation Clean Sweep Europe certification for its two masterbatch facilities in Belgium.

Looking forward, Cabot has established a new framework of 2030 Sustainability Goals, shaped by a comprehensive materiality assessment conducted in 2024. This assessment involved extensive research, peer benchmarking and consultations with internal teams and external stakeholders to identify six priority areas. The resulting 2030 targets include a 15 percent reduction in Scope 1 and Scope 2 GHG emissions intensity and a 20 percent absolute reduction in sulphur dioxide emissions. The goals also encompass ambitious energy and water management targets, such as exporting 250 percent of the energy the company imports and reducing freshwater withdrawal intensity by 10 percent at sites in water-stressed regions. Additional objectives focus on lowering the average product carbon footprint by five to 10 percent and achieving a 25 percent reduction in safety incident rates.

Developed in accordance with Global Reporting Initiative (GRI) Standards, the full 2025 Sustainability Report, which also supports Cabot's commitment to the United Nations Global Compact, is available for review on the company’s website.

Sean Keohane, President and CEO, Cabot Corporation, said, “Sustainability is central to who we are at Cabot and serves as the foundation for our purpose of creating materials that improve daily life and enable a more sustainable future. By leveraging advanced chemistry and innovation, we are supporting our customers in tackling complex sustainability challenges, all while working to minimise our own environmental impact across our global operations. I am immensely proud of the accomplishments our team has made to advance our sustainability priorities and look forward to building on this momentum with the launch of our new 2030 Sustainability Goals, aimed at generating positive, lasting impact for our customers, communities and the world.”

Jennifer Chittick, Senior Vice President – Safety, Health and Environment (SH&E) and Chief Sustainability Officer, Cabot Corporation, said, “As a global leader in our industry, it is our responsibility to set forward-looking goals that challenge us to elevate our sustainability performance. Our 2030 Sustainability Goals are not just benchmarks, they are a strategic framework to guide how we innovate, operate and create long-term value for all our stakeholders. Achieving these goals will require cross-functional collaboration, creativity and a shared commitment to continuous improvement. Our ability to meet them will position Cabot as a differentiated leader in sustainability, both within the chemical industry and beyond.” 

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The Polymer Industry Cluster, in partnership with The University of Akron (UA), has announced the selected location for a new innovation pilot facility dedicated to provide crucial resource for innovators by offering the specialised space and equipment needed to transition new materials from research to market.

A significant advancement for Northeast Ohio's polymer industry, the new scale-up facility will be built on the UA campus next to the existing National Polymer Innovation Center building. This proximity is designed to foster a powerful collaborative environment, giving users direct access to the centre’s advanced resources and expertise. Its location at the heart of the region's polymer corridor will provide a centralised hub for businesses and researchers across the area.

A primary goal of the initiative is to fill a recognised void in the product development cycle. The facility will offer turnkey operational space for both startups and established companies to conduct initial production runs and refine their manufacturing processes before committing to full-scale commercial operations. This support is vital for de-risking innovation and accelerating the launch of new advanced polymer products.

Funding was secured through a USD 31.25 million award from the State of Ohio's Department of Development, granted under the Greater Akron Polymer Innovation Hub programme. This state investment is further strengthened by an additional USD 10.4 million in matching contributions from local partners. The construction timeline is set to begin in the second quarter of 2026, following the vacating of the current Lincoln Building on the site and pending final state approvals. This project underscores a shared commitment to strengthening Ohio's position as a global leader in polymer science and manufacturing.

Hans Dorfi, Executive Director and Chief Innovation Officer, Polymer Industry Cluster, said, “This project underscores Akron’s position as the hub of polymer innovation. By placing this facility next to NPIC and close by other polymer and engineering labs, we’re ensuring that entrepreneurs, researchers and industry partners have the tools, environment and support needed to transform new ideas into commercial realities.”

UA President R J Nemer said, "The University of Akron is excited to make room for the polymer facility project. As the number one institution in the world for polymer science and plastics engineering, we look forward to working with our Akron area partners to elevate polymer research, expand development and amplify production right here at the UA campus."

Akron Mayor Shammas Malik said, “Locating the Polymer Industry Cluster innovation pilot facility on The University of Akron Campus demonstrates the importance of the University as a force for education and innovation within the pipeline of polymer development from idea to industry. This new addition complements the work of Bounce Innovation Hub, builds a new resource for our industry partners and highlights the City of Akron as the centre of polymer innovation at the state and national level. This new facility will be just a short walk from Akron's Rubber Worker statue in the heart of downtown which illustrates the importance of Akron's rubber past as a foundation for our polymer future.”

Mark Smale, Executive Director – Advanced Polymer Science, Bridgestone Americas and co-chair of the Polymer Industry Cluster, said, “This facility will represent a transformational step for the Polymer Industry Cluster. It will attract start-ups seeking to validate new materials, researchers aiming to commercialise discoveries and established companies looking to innovate without interrupting their current operations.”

Summit County Executive Ilene Shapiro said, “This new facility is not just an investment in physical infrastructure. It’s an investment in the future of our economy. By strengthening our position as the global centre of polymer innovation, we are attracting new jobs and talent and ensuring that groundbreaking research and manufacturing will continue to thrive right here in our region for generations to come.”

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A delegation from the All Kerala Small Scale Tread Rubber Manufacturers' Association (AKTRMA) and the Kerala Small Scale Industries Association (KSSIA) met Kerala Finance Minister K N Balagopal and Secretary for Resources Ajit Patil on 18 September 2025, to address the issue of Goods and Services Tax (GST) on tractor tread rubber used for retreading.

The delegation led by A Nisarudheen, State President of KSSIA and Alias Mathew, General Secretary of AKTRMA highlighted the negative impact of the current GST structure on small and medium-scale retreaders, which are crucial to the rural economy. They emphasised the need for GST rationalisation to ensure fair taxation and the long-term viability of the industry.

The industry bodies stated that both the Finance Minister and the Secretary for Resources were receptive to the concerns and gave assurances that the matter would be given serious consideration. They also promised a follow-up meeting once the process begins.

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