News

Kuraray will restructure its organization as described below.

1. Restructuring Policy

Now entering the last year of its G-21 medium-term business plan, Kuraray is focused on attaining the targets and resolving the management issues set forth in that plan. At the same time, the Company is establishing its direction for the post G-21 period. The organizational restructuring and personnel transfers below are intended to build the stable structure needed to make that possible.

Objectives of organizational restructuring

• 1. We are organizing our operations around three sectors, each to be headed by an executive. Each in-house company will be beneath and within a sector. This will allow us to pursue the strategic operation of our businesses from a long-term viewpoint, and across larger business segments,
  within the context of the in-house company system implemented in 2002.
• 2. To accelerate the creation of new businesses, the Corporate Strategy and Planning Division and the Research and Development Division will be merged to form the New Business Development Division.
• 3. We are strengthening corporate functions with a view to the establishment of our Tokyo/Osaka dual headquarters system, and deploying organizations and systems to promote the reform of our headquarters functions.

2. Main features of this organizational restructuring

1. Building structures for the strategic business operations under the in-house company system.

• We are establishing three sectors above our in-house companies: the Fibers and Textiles Sector, The Specialty Resin and Film Sector, and the Chemicals and Medical Products Sector. Each sector will be headed up by an executive, who will promote far reaching and long-term strategic businesses that transcend the boundaries of his in-house company.
• Sector heads will hold the offices of director and senior executive officer, and will exercise executive responsibility for their sector.
• The planning and administration departments of each in-house company will be merged into sector Planning and Administration Departments, and business strategy staffs will be reinforced.

2. Reorganization to accelerate the creation of new businesses.

The Corporate Strategy and Planning Division and Research and Development Division will merge to become the New Business Development Division, and will be tasked with reducing the number of research themes and accelerating new business development.

3. Strengthening corporate functions

• An Office of CSR will be established to systematize the administrative functions of the CSR Committee. The functions of the Environmental, Industrial Safety and Quality Management Center and the Legal Department will be transferred to that office, and a two-group system will be established, composed of the Environmental, Safety and Quality Management Group and the Legal and Risk Management Group.
• The Office of Internal Auditors will focus on internal audits of the parent and group companies, and will be reorganized. The staff of the Office of Internal Auditors will be assigned to individual auditors rather than pooled.
• The Business Process Innovation Team has been established as a corporate-level organization to promote a short-term focus on drastic improvements in headquarters operations. The functions of the BPR Department will be transferred to Kuraray Business Service Co., Ltd., which will allow an integrated push to heighten the efficiency of administrative operations.

4. The reorganization?clarifying the business portfolio we want.

• The Poval Company will split into the Poval Resin Company and the Poval Film Company. Each will individually refine its business strategy and accelerate expansion.
• The GENESTAR business will be split off from the High-performance Materials Division and become the independent Genestar Division, which will lend impetus to the growth and expansion of this business. The High-performance Materials Division will be dissolved, and with the exception of the GENESTAR business, its operations will be transferred to the New Business Development Division's Project Promotion Department, which will assess possibilities for future business development.
• The Eval Company's PET resin business will be transferred to the Clavella Division.
• The Kuraflex Division of the Fibers and Industrial Materials Company will be dissolved, and responsibility for development, manufacturing, and sales of KURAFLEX (a non-woven fabric) will be transferred to our manufacturing subsidiary, Kuraflex Co., Ltd..

3. Other steps

Corporate Management Division

• (1) The functions of the Legal Department will be transferred to the Office of CSR, and the Legal Department will be dissolved.
• (2) To heighten the efficiency of SAP-related operations, the functions of the Business Process Reengineering Department will be transferred to Kuraray Business Service Co., Ltd., and the Business Process Reengineering Department will be dissolved.

New Business Development Division

• (1) A Corporate Planning Department, New Business Planning Department, Project Promotion Department, Kurashiki Plant Research Laboratories and Development Department, Intellectual Property Center, Kurashiki Research Laboratories, Analytical Technololgy Center, Tsukuba Research Laboratories and Optical Device R&D Center will be established within the New Business Development Division.
• (2) To speed up commercialization, a group responsible for each project during the commercialization phase will be formed within the Project Promotion Department.
• (3) To increase the operational and functional efficiency of the research laboratories, R&D themes will be redistributed. The Advanced and Basic Technology Research Laboratories will be renamed the Analytical Technology Center. An Analysis and Solution Group and a VA Material Technology R & D Group will be established at this center.

The Technology Division

• (1) As a result of the shift of the functions of the Environmental, Industrial Safety and Quality Management Center to the Office of CSR, the center will be closed, and the Environment and Technology Division will be redesignated the Technology Division.
• (2) To expand support systems for overseas technology development in response to advancing globalization, an Overseas Technology Group will be established in the Technology Planning and Administration Department.

The Fibers and Textiles Sector

To reinforce the business strategy staff, a Planning and Administration Department will be established in the Fibers and Textiles Sector.

The Fibers and Textiles Sector, Fibers and Industrial Materials Company

• (1) With the transfer of the Kuraflex Division to Kuraflex Co., Ltd., that company will be renamed KURARAYKURAFLEX CO.,LTD. Together with this, the Industrial Material Division will be dissolved.
• (2) As a result of the consolidation of planning and administration staff into a single group, the Planning and Administration Department will be disestablished. As a result, a Production Management & Process Technique Department with responsibility for manufacturing, quality control, and technical services will be established.
• (3) To open new markets and further our marketing strategy in the industrial materials field, a Market Development Department will be established within this company.

The Fibers and Textiles Sector, Clarino Company

• (1) As a result of the consolidation of planning and administration staff into a single group, the Planning and Administration Department will be disestablished.
• (2) To promote full-scale participation in the automotive field, the Development Department's Basic Technology Development Group will be merged into the same group's Innovative Process Development Group. The Automobile Upholstery Development Group will also be transferred to that group.

The Fibers and Textiles Sector, Clavella Division

Due to the shift of the PET resin business out of the Eval Company, a PET Resin Sales Group will be established within the Fiber and Resin Sales Department.

Specialty Resin and Film Sector

To reinforce the business strategy staff, a Planning and Administration Department will be established in the Specialty Resin and Film Sector.

Specialty Resin and Film Sector, Poval Resin Company

• (1) As a result of the consolidation of planning and administration staff into a single group, the Planning and Administration Department will be disestablished.
• (2) The Poval Sales Department specializes in domestic sales, and includes Sales Group I and Sales Group II.
• (3) In response to the advance of globalization, the Poval Sales Department Overseas Sales and Marketing Group will become the Global Operations Department.
• (4) To promote marketing and effective sales expansion efforts in the Asian region PVB business, the Poval Resin Company will have direct control over the Poval Sales Department's PVB Sales and Marketing Group.
• (5) In the interests of product development and the coordination of technical service functions, as well as to further project development, the Poval Sales Department's Product Development and Technical Service Group, and the Overseas Companies Group's technical service functions,will be combined in the Products Development Department.
• (6) The Kurashiki Plant Research and Development Department will shift to a two-group system, establishing a Poval Research and Development Group and a PVB Research and Development Group.

Specialty Resin and Film Sector, Poval Film Company

The Poval Company's Kurashiki Plant Research and Development Department film group, the Film Sales Department Product Developmen and Technical Service Group will be integrated, and will become the Poval Film Company's Kurashiki Plant Research and Development Department.

Specialty Resin and Film Sector, Methacrylate Company

• (1) As a result of the consolidation of planning and administration staff into a single group, the Planning and Administration Department will be disestablished.
• (2) To achieve the efficient development of manufacturing technology, the Nakajo Plant Methacrylate Technology Department, Technology Division will be absorbed by the Nakajo Plant Production Technology Development Department.

Chemicals and Medical Products Sector

To reinforce the business strategy staff, a Planning and Administration Department will be established in the Specialty Resin and Film Sector.

Chemicals and Medical Products Sector, Chemicals Company

As a result of the consolidation of planning and administration staff into a single group, the Planning and Administration Department will be disestablished.

Genestar Division

• (1) A Planning and Administration Department, Sales Department, and Development Department will be established within the Genestar Division.
• (2) To clarify accountability and promote the expansion of our operations in the automotive field, an Electronic and Electrical Materials Group and an Automotive Materials Group will be established within the Sales Department.
• (3) To promote effective acceleration of development, a Technology Development Group will be established within the Planning and Administration Department, and a Polymer Processing Development Group and a Materials Technology Development Group will be established within the Development Department.

Offices

To increase the efficiency of our domestic offices, the Fukui Office will be closed.

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