MOSCOW (MRC) -- Kuraray Co., Ltd. (Tokyo, Japan) intends to merge and absorb its wholly-owned subsidiary, Kuraray Chemical Co., Ltd, in a bid to expand in the carbon materials business, as per the company's press release.
With the merger, due effective on 1 January 2017, Kuraray Co. Ltd, as the surviving company, will absorb Kuraray Chemical, which will be dissolved.
Kuraray is working to commercialise a plant-based hard carbon anode material for use in components of lithium ion batteries (LiBs), targeting the energy field.
Meanwhile, Kuraray Chemical is engaged in the global activated carbon business, producing functional carbon materials used in applications such as energy, water resource and air purification fields.
The markets both parent and subsidiary are expected to see "burgeoning growth" from automotive LiB components, as well as 7%/year growth in activated carbon, due to tightening regulations against water and air pollution and demand growth in emerging countries.
"Given this operating environment, Kuraray has decided to execute a merger aimed at absorbing Kuraray Chemical to aim for earlier expanding of the carbon material business," it said.
We remind that, as MRC informed previously, Kuraray Co. plans to increase the production capacity of ethylene vinyl alcohol copolymer, EVAL within its subsidiary, Kuraray America, Inc. (Houston). The Kuraray EVAL plant located in Pasadena, Texas will increase their capacity by 11,000 ton/yr with planned operations to commence in the summer of 2018.
Kuraray produces specialty chemicals, fibres and other materials, including functional resins and films, synthetic isoprene chemical products, synthetic leather, vinylon fibre and polyester fibre.
MRC