Kuraray Plastics Co., Ltd. announces that the price of Kuraray Plastics' hydrogenated styrenic thermoplastic elastomer, SEPTON compound, will increase by ¥20 per kilogram for domestic and overseas shipments commencing February 21, 2008.
SEPTON compound, a substitute for polyvinyl chloride and vulcanized rubber, is an eco-friendly molding material. It has attracted strong demand for use in the manufacture of auto parts, parts for home appliances, and electronic components, as well as for medical and industrial products.
Due to spiraling major raw material prices, Kuraray Plastics has revised SEPTON compound prices several times in recent years. However, crude oil and naphtha prices are still hovering at a high level, while major raw material prices continue to rise. Therefore, revenues from SEPTON compound are declining.
Under these circumstances, Kuraray Plastics has made all possible efforts to reduce and rationalize costs. Despite such endeavors, the increasing prices are offsetting the ongoing cost reduction efforts, and Kuraray Plastics will implement the following price revision with the aim of maintaining SEPTON compound's stability of supply and improving its profitability.