Kuraray to Transfer Its Methacrylic Resin Sheet Manufacturing Subsidiary in China
Kuraray Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Hitoshi Kawahara; hereinafter “Kuraray”) hereby announces it has decided to transfer all of the shares of its wholly owned subsidiary Kuraray Methacrylate (Zhang Jia Gang) Co., Ltd. (Head Office: Zhangjiagang City, Jiangsu Province, China; Chairman: Yoshinobu Nakamura) to Jiangsu Double Elephant Group Co., Ltd. (Head Office: Wuxi City, Jiangsu Province, China; Chairman: Tang Bingquan) and has concluded a share transfer agreement.
1. Background and Purpose of the Business Transfer
Since its establishment in 2004, Kuraray Methacrylate (Zhang Jia Gang) has operated a cast methacrylic resin sheet business in the Chinese market and leveraged the strength of its high quality to expand its business, mainly centered on acrylic bathtub applications for luxury brands. In addition, the subsidiary has acted as a supply base for cast sheets bound for the Japanese market. However, due to the uncertainty in the Chinese real estate market in recent years, sales for its mainstay application of acrylic bathtubs have decreased, leading to a decline in profitability.
Kuraray announced it would create a more sophisticated business portfolio in its medium-term management plan “PASSION 2026” and is working to optimize its businesses in part by reducing the production capacity of methyl methacrylate (MMA) in the methacrylate business. Amid major changes in the Chinese market, we have decided that transferring the subsidiary to Jiangsu Double Elephant Group, which boasts the largest MMA production scale in China, is the best way to ensure the technologies we developed will continue to be put to good use and that the cast sheet business continues to grow.
2. Transfer Details
(1) Company to be transferred: Kuraray Methacrylate (Zhang Jia Gang) Co., Ltd.
(2) Acquiring company: Jiangsu Double Elephant Group Co., Ltd.
(3) Transfer period: mid February to early March, 2026
3. Outlook
Jiangsu Double Elephant Group aims to continue stable operation of the existing plant and retain the employees while expanding business in the Chinese and global markets. In addition, regarding PARAGLAS™, which is sold in the Japanese market, Kuraray reached an agreement regarding continued supply of products from the same plant.
The Company will ensure a smooth transition in collaboration with Jiangsu Double Elephant Group while fulfilling its duty to brief existing customers.
Furthermore, we expect the impact of the transfer on Kuraray’s consolidated business results to be minor. Going forward, in the event a revision to our results forecast or another matter should merit disclosure, we will swiftly announce the details.
Overview of Subsidiary to Be Transferred
Name : Kuraray Methacrylate (Zhang Jia Gang) Co., Ltd.
Location of head office : No. 58, Nanhai Road, Jiangsu Yangtze International Chemical Industrial Park, Zhangjiagang City, Jiangsu Province, China
Representative : Chairperson Yoshinobu Nakamura
Established : 2004
Principal businesses : Manufacture and sale of cast methacrylic resin sheets
Overview of Acquiring Company
Name : Jiangsu Double Elephant Group Co., Ltd.
Head office : No. 156, Houzhai Middle Road, Hongshan Street, Xinwu District, Wuxi City, Jiangsu Province, China
Representative : Chairperson Tang Bingquan
Established : 1985
Principal businesses : Manufacture and sale of MMA, PMMA, rubber and plastic machinery, synthetic leather, and other products
Group companies : Chongqing Yixiang Chemical Co., Ltd.; Chongqing Double Elephant Optical Materials Co., Ltd; Wuxi Double Elephant Micro Fibre
Material Co., LTD.