Kuraray projects earnings-reverse at isoprene unit

Tokyo – Kuraray expects its isoprene business unit, which manufactures C4-based chemicals and elastomers, to record an operating loss in 2023.

During the first quarter of the year, the unit delivered Yen200 million (€1.3 million) in operating income, 92% down from Yen2.7 billion reported the year before.

Segment sales, however, rose slightly from Yen15.4 billion in 2022 to Yen15.8 billion, Kuraray announced 16 May.

The group linked the decline in earnings to volume decrease, as a result of lower demand which began in the latter half of the previous year.

Another factor, said Kuraray, was the negative impact from the start-up of a new elastomers plant in in Rayong, Thailand, and reduced output at other sites.

For full-year 2023, Kuraray expects the isoprene unit to post an operating loss of Yen2.5 billion, against a profit of Yen4.3 billion last year.

The group linked the anticipated reversal to lower volumes in “all isoprene chemical, elastomer and [speciality polyamide] products."

Earnings, it said, will be further impacted by planned maintenance work at Kuraray's isoprene plant in Kashima, Japan.