January 29, 1999
Kuraray Co., Ltd.

New Business Development, RS POLYMER, a New Water-Soluble Resin
Utilizing its innovative synthesis technology, Kuraray has developed a new water-soluble
resin, RS POLYMER, and has begun test operation of a pilot facility at its Nakajo Plant inNakajo-machi, Niigata Prefecture. Moreover, we are constructing a production facility at ourOkayama Plant with a view to beginning production in January 2000.
1. What are Poval and “EVAL”?
Kuraray was the first company in the world to commercialize poval (polyvinyl alcoholicresin), a water-soluble synthetic resin. With its superior water-solubility, adhesivity, andemulsifying properties, poval has a wide variety of applications, such as a warp sizing agent, apaper processing agent, and an adhesive. Kuraray is the world’s leading manufacturer ofpoval, with approximately 30% of the world market.
Kuraray was also the first to commercialize “EVAL” (EVOH resin). Due to its
outstanding gas barrier properties, which enable it to shut out such gases as oxygen andcarbon dioxide, “EVAL” is used as a food packaging material and for non-food applications.
Kuraray has a 70% share of the world market for EVOH resins.
2. What is “RS POLYMER”?
Being a water-soluble resin combining the properties of poval and EVOH resins, RS
POLYMER has the following qualities, making possible the development of a wide range ofapplications.
(1) Water resistance and gas barrier properties
Although RS POLYMER is water soluble, it shows water resistance and barrier
properties. If, for example, a product is bonded to a substrate using an emulsion (an adhesiveused for wood materials) containing RS POLYMER, water resistance is improved to a level
where the product does not peel off even if it comes into contact with hot water. Furthermore,when an RS POLYMER solution is applied onto surfaces of substrates such as paper andfilms, these items demonstrate not only water resistance, but also high barrier properties
against a variety of gases, oil and organic solvents.
(2) Stable viscosity in solution at low temperatures
When RS POLYMER is dissolved in water, it demonstrates improved workability at thetime of application, free from such problems as the changing viscosity of solutions over time(the gelation problem).

(3) Melt-molding properties
As RS POLYMER has both melting properties and water solubility, it opens up thepossibility of developing new molding applications, such as the molding of films, sheets, andinjection-blow molded bottles with water soluble property.
(4) Biodegradability
Thanks to the excellent biodegradability of RS POLYMER, it is easy to conform to water
regulations and to lighten the load placed on wastewater treatment systems. It is particularly
effective for applications such as warp sizing.
3. Business Plan for “RS POLYMER”(1) Pilot Plant(i) Location:
Nakajo Plant (Nakajo-machi, Niigata Prefecture)(ii) Production capacity:(iii) Production begun:(2) Production Facility(i) Location:(ii) Production capacity:(iii) Construction begun:(iv) Operations to begin:(iv) Capital investment:

800 tons p.a.
February 1996

Okayama Plant (Kaigandori 1-2-1, Okayama City; Plant
Manager: Tatsuya Nakano, Director)
10,000 tons p.a.
November 1998
January 2000
¥1,000 million approx.

(3) Marketing Plan
At present, the domestic market takes precedence. However, once this production facility
comes on stream, we hope to expand into the export market with its huge latent demand. We
are therefore now promoting sampling activities targeted at overseas countries.
Sales targets:

Fiscal 2000
Fiscal 2002
Fiscal 2005

¥1,000 million¥3,000 million¥5,000 million