Kuraray Co. (Tokyo) has decided to transfer all of the shares of its wholly owned subsidiary Kuraray Methacrylate (Zhang Jia Gang) Co., headquartered in Zhangjiagang City, Jiangsu Province, China, to Jiangsu Double Elephant Group Co. and has concluded a share transfer agreement.
Since its establishment in 2004, Kuraray Methacrylate (Zhang Jia Gang) has operated a cast methacrylic resin sheet business in the Chinese market and leveraged the strength of its high quality to expand its business, mainly centered on acrylic bathtub applications for luxury brands. In addition, the subsidiary has acted as a supply base for cast sheets bound for the Japanese market. However, due to the uncertainty in the Chinese real estate market in recent years, sales for its mainstay application of acrylic bathtubs have decreased, leading to a decline in profitability.
Kuraray is working to optimize its businesses in part by reducing the production capacity of methyl methacrylate (MMA) in the methacrylate business. Amid major changes in the Chinese market, the company decided that transferring the subsidiary to Jiangsu Double Elephant Group, which boasts the largest MMA production scale in China, is the best way to ensure the technologies developed by Kuraray will continue to be put to good use and that the cast sheet business continues to grow. The transfer period is expected to occur from mid-February to early March 2026.
Jiangsu Double Elephant Group aims to continue stable operation of the existing plant and retain the employees while expanding business in the Chinese and global markets. In addition, regarding PARAGLAS™, which is sold in the Japanese market, Kuraray reached an agreement regarding continued supply of products from the same plant.
The Company will ensure a smooth transition in collaboration with Jiangsu Double Elephant Group while fulfilling its duty to brief existing customers.