Kuraray Sells Its Chinese PMMA Sheet Business Subsidiary to Jiangsu Shuangxiang Group

December 8, 2025 - Kuraray Co., Ltd. announced that it has decided to transfer all shares of its wholly-owned subsidiary, Kuraray Acrylic (Zhangjiagang) Co., Ltd., to Jiangsu Shuangxiang Group Co., Ltd. The companies have signed a share transfer agreement.

1. Background and Purpose of the Business Transfer
Since its establishment in 2004, Kuraray Acrylic (Zhangjiagang) Co., Ltd. has operated a cast methyl methacrylate (PMMA) sheet business in the Chinese market, expanding its operations by leveraging its high-quality advantages, primarily for acrylic bathtubs targeting high-end brands. Additionally, the subsidiary also serves as a production base for cast PMMA sheets supplied to the Japanese market. However, influenced by recent uncertainties in the Chinese real estate market, sales in its main application area of acrylic bathtubs have declined, leading to a decrease in profitability.

In its medium-term management plan "PASSION 2026," Kuraray aims to build a more refined business portfolio and is working to optimize its business structure, including by reducing methyl methacrylate (MMA) production capacity within its methacrylic business. Faced with significant changes in the Chinese market, Kuraray believes that transferring the subsidiary to Jiangsu Shuangxiang Group Co., Ltd., which possesses the largest MMA production scale in China, is the optimal path to ensure the continued effective utilization of existing technology and to secure the sustained growth of the cast PMMA sheet business.

2. Transfer Details
(1) Company to be transferred: Kuraray Acrylic (Zhangjiagang) Co., Ltd.
(2) Acquirer: Jiangsu Shuangxiang Group Co., Ltd.
(3) Transfer timeframe: From mid-February to early March 2026.

Profile of the Subsidiary to be Transferred
Name: Kuraray Acrylic (Zhangjiagang) Co., Ltd.
Headquarters Address: No. 58 Nanhai Road, Jiangsu Yangtze River International Chemical Industrial Park, Zhangjiagang City, Jiangsu Province, China
Established: 2004
Main Business: Production and sale of cast methyl methacrylate (PMMA) sheets.

3. Future Outlook
Jiangsu Shuangxiang Group Co., Ltd. plans to maintain stable operations at the existing plant and retain employees while expanding business in the Chinese and global markets. Furthermore, regarding PARAGLAS™ products sold in the Japanese market, Kuraray Co., Ltd. has reached an agreement with Jiangsu Shuangxiang Group Co., Ltd. to continue procuring products from this factory.

Kuraray Co., Ltd. will collaborate closely with Jiangsu Shuangxiang Group Co., Ltd. to ensure a smooth transition and fulfill its obligation to inform existing customers.