Kuraray Co., Ltd. today announces a decision to implement a major organizational restructuring as of April 1, 2009.
Further organizational restructuring measures (within divisions or sections) as of April 1, 2009, will be announced at a later date.

1. Policy

In light of severe operating conditions that are likely to remain extremely uncertain, organizational restructuring and personal transfers in business divisions and other departments are being kept to a necessary minimum in order to conform to thorough management streamlining that has bolstered the Company's organizational structure.

However, in an effort to enhance an organizational structure that will become the basis for future development, Kuraray will implement the following organizational changes and personnel transfers that incorporate organizational streamlining, adapt organization structures and personnel for the early cultivation of new businesses, and the promotion of younger staff.

2. Details of Organizational Reform

(1) Efficiency of indirect functions of head offices

In order to facilitate rapid decision making through direct communications with executive officers, Corporate Management Division, Office of Corporate Communications, Accounting and Finance Division, Purchasing and Logistics Division, Office of Global Business Development, and General Affairs and H.R. Division will be reorganized into the Corporate Control Department, Corporate Communications Department, Accounting Department, Finance Department, Raw Material Department, Machinery and Supplies Department, Logistics Department, Department of Global Business Development, General Affairs Department, H.R. Department and Career Development Department, respectively.

At the same time, consolidating and reorganizing divisions and departments will involve incorporating the Affiliated Companies Administration Department into the Corporate Control Department, the Office of the Secretariat and Osaka General Affairs Department into the General Affairs Department, and the Osaka Accounting Department into the Accounting Department. In addition, a reorganization of CSR Department within the CSR Division will take place with the amalgamation of the Quality Management and Product Safety Department and Risk Management Department.

(2) Early cultivation of new businesses

In order to clarify research organizations' areas of specialization, research laboratories will be reorganized based on function (technological field). Specifically, Kurashiki Research Laboratories and Tsukuba Research Laboratories within the New Business Development Division will be reorganized into the Kurashiki Research Center and Tsukuba Research Center respectively. Consequently, the Synthesis Research Laboratory, VA-related Polymers Research Laboratory and Analytical Technology and Solutions Laboratory will be established at the Kurashiki Research Center, and the Polymer Materials Research Laboratory and Polymer Processing Research Laboratory will be established at the Tsukuba Research Center.

Moreover, Companywide project teams will be reorganized for the early commercialization of business (product) development.

(3) Environmental Business Development and Promotion Division and PVB Division to be established

In order to carry out development and early expansion of key new businesses throughout the Kuraray Group—including those located overseas—the Environmental Business Development and Promotion Division will be established, and. In addition, the PVB Division will be established within the Specialty Resin and Film Company.

(4) KURAFLEX, Fastening and Medical divisions to be established

In order to further promote integrated management within the Kuraray Group in such business management areas as development and personnel, the KURAFLEX Division and Fastening Division will be established in the Fibers and Textiles Company and the Medical Division will be established in the Chemicals and Medical Products Company to function as points of contact for KURARAYKURAFLEX Co., Ltd., Kuraray Fastening Co., Ltd. and Kuraray Medical Inc. respectively.

(5) Elastomer Division to be established

The Elastomer Division will be established within the Chemicals and Medical Products Company to further expand business operations of SEPTON thermoplastic elastomers.

(6) CSR Division reorganized

In order to promote CSR and environmental safety from a CSR-oriented perspective, the Environmental, Industrial Safety and Quality Management Center will be incorporated into the CSR Division.

Moreover, the CSR Division's Legal Department will be spun off to clarify strategic roles in the area of business management throughout the Company.