Strategic Businesses Make Solid
Contribution to Earnings
Operating highlights by division
Consolidated
breakdown by division:
| |
(¥ million,
except where stated) |
| Division |
|
Fiscal
2004 |
Fiscal
2003 |
Change
(%) |
| Advanced materials |
| |
| Specialty chemicals |
| |
| Specialty plastics |
| |
| Other operations |
| |
|
| Sales
|
| Operating income |
| Sales
|
| Operating income |
| Sales
|
| Operating income |
| Sales
|
| Operating income |
|
| 25,158 |
| 3,192 |
| 31,000 |
| 4,050 |
| 50,729 |
| 872 |
| 23,512 |
| 2,156 |
|
| 24,912 |
| 2,815 |
| 32,823 |
| 3,291 |
| 51,139 |
| 1,285 |
| 26,144 |
| 2,175 |
|
| 1.0 |
| 13.4 |
| (5.6) |
| 23.1 |
| (0.8) |
| (32.1) |
| (10.1) |
| (0.9) |
|
| |
| Operating income |
| ancellations |
|
|
|
|
|
|
|
|
|
|
Advanced materials division
Major
product areas: advanced plastics (PPS resin,
PVDF resin), carbon products
PPS
resin - Global supply shortage expected
Sales of advanced plastics(PPS resin and PVDF
resin) totaled ¥9.8 billion in fiscal 2004.
PPS resin, a super engineering plastic with a
diverse range of applications, including in the
electrical, electronic and automobile industries,
ran at full production capacity throughout the
year and registered strong sales. Kureha, together
with its US joint venture, is the world's largest
manufacturer of PPS resin, one of Kureha's key
strategic growth products.
Kureha itself produced 6,200 of the 40,000 tonnes
of PPS resin produced globally per year. Demand
continues to grow at over 10% per year and this
high rate is expected to continue with global
demand widely expected to reach 50,000 tonnes
by 2008. Due to this high growth rate, it is
predicted that demand is likely to outpace production
capacity within two or three years.
To meet this increase in demand, Kureha is rapidly
expanding PPS production capacity at its Nishiki
Factory in Japan from 6,200 to 7,500 tonnes per
year in April 2005 and to 10,000 tonnes per year
by April 2006. However, a significant increase
in production capacity, including the possibility
of Kureha constructing a new plant, may be necessary
to respond to the global supply shortfall in
PPS resin expected after 2008.
Polyvinylidene
fluoride (PVDF) resin - Production capacity to
be increased
The outlook for Polyvinylidene fluoride (PVDF)
resin, a high performance material used in the
chemical and electronic industries, remains positive,
despite sales being flat in fiscal 2004. Currently
PVDF resin is used in such applications as electrode
binders for lithium-ion batteries, valves for
chemical plants, and pipe coatings. There is
also growing demand for PVDF for a number of
new applications, such as hollow fiber membrane
filters used in water treatment plants. Demand
for Kureha's PVDF products has grown rapidly
in recent years and production operated at full
capacity in fiscal 2004. Kureha plans to increase
production capacity from 1,500 to 2,500 tonnes
per year by December 2005.
Carbon
products buoyant
Sales of carbon products totaled ¥7.1 billion
in fiscal 2004 due to strong exports of bead-shaped
activated carbon and increased demand for heat
resistant materials for heat-treating furnaces.
Specialty chemicals division
Major product areas ----- pharmaceuticals,
agrochemicals, industrial chemicals
Pharmaceuticals outlook remains buoyant
Sales of pharmaceutical products totaled ¥9.5
billion in fiscal 2004. Sales of Kremezin,
a chronic kidney disease treatment, and Krestin,
a drug for cancer immunotherapy, remained steady
throughout the year. Kureha is making progress
in expanding overseas markets for Kremezin,
a product currently sold predominantly in the
domestic market. In June 2004, Kureha signed
a licensing agreement for Kremezin in China,
while in February 2005, the company started selling
in South Korea via a business alliance with Sankyo
Pharmaceutical and CJ Corp, a major Korean food
and pharmaceutical firm. In the longer term,
Kureha believes that by 2008, Kremezin
is likely to become a standard treatment in Japan
for chronic kidney disease. Kureha is also targeting
Kremezin sales in the USA from about 2009,
with the product now about to enter the phase
iii clinical trial stage.
Worldwide
registrations of agrochemicals increasing
Sales of agrochemicals totaled ¥7.3 billion
in fiscal 2004. Kureha's agricultural fungicides,
Metconazole and Ipconazole, remained
in strong demand, reflecting the growing number
of countries that have received approval to market
the products. Metconazole, a fungicide
for cereal crops that Kureha produces in Japan
and India, is registered in over 30 countries,
mainly in Europe and Central/South America. Long
term growth prospects for Metconazole
are also strong as the product is expected to
receive approval to be marketed in Japan on wheat
and citrus fruits, in Taiwan on mangos, and in
Brazil on soy beans, by March 2007. Ipconazole,
a seed disinfectant, is currently marketed in
five countries. |
