Kuraray's isoprene unit hit by 'defect' at new Thai plant, low demand
Japanese group notes “intensifying competition” for elastomers business
Tokyo – Kuraray has reported a third quarter loss within its isoprene business unit, which manufactures chemicals and elastomers among other products.
The unit posted a loss of nearly Yen4,100 million (€25 million) for the quarter ended 30 Sept, down from a profit of Yen4,100 million reported for the same period last year.
Sales also fell by nearly 2% year-on-year to Yen46,800 million, hit by a Yen2,700 million impact of lower volumes.
In a 9 Nov earnings announcement, Kuraray linked the decline in revenue to “lower demand and production adjustments”.
Operating income, meanwhile, was impacted by depreciation at the Thai plant opened in May (ERJ report) and higher expenses.
In addition, Kuraray said that there was a decrease in production volume and an increase in expenses “due to a defect in a production facility after the start-up of the Thai plant.”
The issue was resolved by extending the scheduled repair period, the Japanese group added.
For elastomers in particular, Kuraray noted “intensifying competition” as a negative contributor.
Furthermore, operating income was negatively impacted by inventory adjustments, especially within the electrical and electronic segment.