Kuraray announces the following organizational restructuring and transfer of personnel.

1. Restructuring Policy

Upon the launch of its GS-21 Medium-Term Business Plan in 2006, Kuraray carried out major organizational changes and personnel transfers with the aim of rejuvenating its personnel structure and pursuing speedy management in its global operations.

This year, Kuraray is focusing on organizational continuity, and the minor restructuring effective April 1, 2007 will be primarily for the purpose of creating new businesses. Kuraray will implement the following organizational changes and personnel transfers to secure an optimal structure for attaining its GS-21 goals.

2. Main Features of Organizational Restructuring

(1) Appoint an executive to overcome organizational barriers and lead collaboration between development and technology functions

Kuraray shall appoint a Chief Technology Officer (CTO) who will be in charge of development and technology functions. Placing an executive on overall charge of technological aspects and engineering staff will strengthen technological capabilities that are in line with management strategies and accelerate the creation of new businesses.

(2) Accelerate creation of new businesses

  • A) The Corporate Planning Department will be strengthened in its capacity as the body that deals with strategies related to mergers and acquisitions, as well as other business tie-ups with external parties. Accordingly, this department will be separated from the New Business Development Division to become the Office of Corporate Strategy and Planning under the direct control of the president.
  • B) To accelerate development of our inorganic EL business within a streamlined structure, the inorganic EL development operations of the Optical Device R & D Center and of the KCC Promotion Team, which heretofore have been under the New Business Development Division, will be transferred to Kuraray Luminas Co., Ltd.. The aforementioned Center and Team shall be dissolved.
  • C) To hasten new business development, the Kurashiki Research Laboratories will absorb the activities of the Analytical Technology Center.

(3) Reinforce safety, compliance and risk management functions

  • A) The Office of CSR and Communications will be reorganized to form the CSR and Communications Division, thereby enhancing the functions and reinforcing the framework.
  • B) The Environmental and Industrial Safety Management Center will become independent of the Environmental, Industrial Safety and Technology Division. By placing it under an executive officer responsible for plants, its position as a regulatory center for plant environmental and industrial safety functions will be clarified.

(4) Streamline organizations within in-house companies

  • A) The Chemicals Company will absorb Kuraray Medical Inc. and be reorganized to become the Chemicals and Medical Products Company. Functions that Kuraray Medical Inc. possessed as an independent company will be streamlined and kept to a minimum.
  • B) To provide more thorough development of isoprene-related businesses, the Chemicals Division and the Elastomer Division of the Chemicals and Medical Products Company will be merged and reorganized to form the Isoprene Chemicals Division.

(5) Restructure organizations related to accounting and IT systems

  • A) The Business Services Division of Kuraray Business Service Co., Ltd. will be transferred to the Accounting and Finance Division, under which the Accounting Department, Osaka Accounting Department and the Credit Administration Group will be established.
  • B) In addition to fulfilling specialized functions as the company entrusted with IT system-related business, Kuraray Business Service Co., Ltd. will be placed under the jurisdiction of the Corporate Management Division with the aim of strengthening system planning functions.

3. Additional Organizational Reforms

CSR and Communications Division

To bolster CSR and risk management functions across the Group, the following departments will be placed under this division: the Corporate Communications Department, the Quality Management and Product Safety Department, the Legal Department and the Risk Management Department.

New Business Development Division

  • (1) To accelerate business development projects, the Project Promotion Department will be dissolved and the projects it managed shifted to the direct control of this division.
  • (2) The New Business Planning Department will be reorganized to form a Planning and Administration Department with the aim of streamlining the organization of Headquarters.
  • (3) The name of the Intellectual Property Center will be changed to the Intellectual Property Department.

Technology Division

  • (1) Having fulfilled its functions, the Maintenance, Environment and Utility Group within the Technology Development Center will be dissolved.
  • (2) The functions of the Injection Molding Development Team will be transferred to the Optical Products Production & Development Department at the Methacrylate Division's Kashima Plant, within the Chemicals and Medical Products Company. The team will be dissolved.

Fibers and Textiles Company

  • (1) The Fiber Materials Development Department and the Market Development Department will be consolidated to form the Fiber Materials Planning and Development Department. The purpose of this measure is to promote greater collaboration in efforts to develop new functional fibers using new polymers and efforts to open new markets.
  • (2) The Advanced Materials Development Group will be established to push vigorously for the development of commercial applications for advanced materials developed using steam-jet technologies. Such applications will open new markets in areas including construction materials, automobiles and aircraft.

Fibers and Textiles Company, Clarino Division

The new CATS Development Department will be established to accelerate development of the new CATS process for manufacturing CLARINO. Accordingly, the Chemicals Development Department will be dissolved.

Fibers and Textiles Company, KURARAY FASTENING CO., LTD.

  • (1) Sales Department Three will be merged into Sales Department One to streamline operations of the Sales Division and to promote greater coordination of unfinishing products and consumer products sales. Accordingly, Sales Department Three will be dissolved.
  • (2) The Streamlining Promotion Team will be formed to promote greater efficiency in production management operations, primarily in the areas of taking and placing orders.
  • (3) To promote streamlining and greater coordination of production and development operations, direct control of the Development Center will be transferred from the Production and Development Division to the Maruoka Plant.

Fibers and Textiles Company, KURARAYKURAFLEX CO.,LTD

The FLEXTAR Promotion Department will be established within the Planning and Administration Division to perform overall management of development, production, processing and sales operations, with the aim of launching New-Type Nonwoven Fabric (Steam-jet type nonwovenfabric).

Specialty Resin and Film Company, Poval Resin Division

In order to promote greater efficiency and to build a development structure more closely linked with sales, the Products Development Department will be dissolved and a Marketing Group newly established in the Global Operation Department.

Specialty Resin and Film Company, Poval Film Division

  • (1) The Poval Film Technology Department will be newly established to reinforce the business platform and promote smoother operations.
  • (2) The Film Sales Department will be renamed the Poval Film Sales Department.

Chemicals and Medical Products Company, Methacrylate Division

The following reforms will be implemented in line with the goals of: organizational dismantling owing to the withdrawal from the screen business; accelerating market launches of newly developed products; and strengthening the functions of the production, development and quality control departments.

  • (1) The PTV Screen Sales Department and the Niigata Plant's Methacrylate Optical Devices Production Department will be dissolved.
  • (2) The Quality Control Department and the Optical Products Planning Group will merge to form the Products Management Department.
  • (3) The Methacrylate Materials Development Department and the Methacrylate Optical Devices Development Department at the Niigata Plant will be merged to form the Methacrylate Development Department.
  • (4) The Optical Products Production & Development Section will become the Optical Products Production & Development Department to strengthen the Kashima Plant's production and development structure in optical-related products.

Chemicals and Medical Products Company, Isoprene Chemicals Division

The Acrylic TPE Business Development Team, which had been under the direct control of the Chemicals Company, will be placed under the Isoprene Chemicals Division.

Kuraray Medical, Inc.

  • (1) The Business Promotion Department will be dissolved and its projects moved to the direct control of the president.
  • (2) The Office of the President will be reorganized to form the Planning and Administration Department.