Kuraray has decided to raise the price of PARAPET, a PMMA (methacrylic resin) molding material, by ¥20 per kilogram in Japan, commencing with shipments from May 1, 2007.
PMMA molding materials are in strong demand for use in optical materials for LCD light guides, as well as for applications in automobiles. Consequently, there is a tight balance between supply and demand for such materials in Japan and the rest of Asia.
Furthermore, throughout the chemical industry there are no plans to expand production capacity this year for MMA (methyl methacrylate), the primary raw material used to manufacture PMMA. Demand for MMA is expanding in Asia, and there is a highly strained balance between supply and demand.
At the same time, crude oil and naphtha prices are rising sharply again, and Kuraray's raw materials costs have increased significantly. As a result, earnings in the PMMA molding material business have declined steeply.
In light of such circumstances, Kuraray decided to implement price revisions to maintain a stable supply and to improve profitability in this business. Details of the price revision are as follows.