Rising crude oil, naphtha prices lead Tokyo-based Kuraray to announce EVOH resin, film price increases, effective April 15

CHIYODA-KU, Tokyo , March 29, 2012 (press release) – Kuraray Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo) announces its decision to revise the prices of its EVOH resin (ethylene vinyl alcohol copolymer; Kuraray trademark: EVAL) and EVOH film (EVAL film), for shipments commencing April 15, 2012. Details of the price revisions are given below.

Due to rising crude oil and naphtha prices, the price of ethylene, the main raw material used in producing EVAL, has also continued to climb sharply. In addition, profitability has been deteriorating due to various factors including the rising cost of utilities. These increasing costs exceed the scope of cost reductions achieved through the Company's independent efforts.

Under these circumstances, Kuraray has decided to implement the following price revisions for EVOH resin (EVAL) and EVOH film (EVAL film).

 1. Scope of  revisions  All domestic and overseas shipments of EVOH resin (EVAL) and EVOH
 film (EVAL film)
2. Price increases  EVAL: ¥50 per kilogram for domestic shipments; US$0.5 per kilogram
 for  export
 EVAL film: ¥600 per 20μ 500m2
3. Effective date  Shipments from April 15, 2012

With the release of EVAL in 1972, Kuraray became the first company in the world to develop and commercialize a high-functional resin, which boasts the highest level of gas barrier properties of any plastic (approximately 10,000 times that of general-purpose polyethylene). Given these properties, EVAL is employed for a variety of applications, including as excellent wrapping material for preserving food and containers for cosmetics and chemicals. In the context of the strict gasoline fuel emission controls in recent years, EVAL's use as a material for automotive fuel tanks has been expanding, as it facilitates weight reduction and molding. Furthermore, use of EVAL in wall coverings and floor-heating and pipes for floor heating systems as well as other home and everyday products has been growing and demand has been expanding worldwide.

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