Kuraray anticipates 2023 operating loss for isoprene unit

TOKYO—Kuraray Co. Ltd. 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 $1.4 million in operating income, 92 percent down from $20.5 million reported the year before.

Segment sales rose slightly from Yen 15.4 billion in 2022 to Yen 15.8 billion, Kuraray announced May 16. When accounting for U.S. exchange rates, however, sales were down from $115 million in 2022 to about $113 million.

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 $17.9 million.

The group linked the anticipated reversal to lower volumes in "all isoprene chemical, elastomer and (specialty polyamide) products."

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