Investment in a new EVAL™ plant

March 27, 2024

Kuraray Co., Ltd.
© Copyright 2024 KURARAY CO., LTD. 11EVAL , EVOH resin
Chemical name :Ethylene vinyl alcohol copolymer (EVOH)
Kuraray is the world’s pioneer; started production in 1972.

Characteristics :The highest level of gas barrier properties as resin materials forpackaging.

Main applications : Food packaging (preventing oxidation)
Automotive plastic fuel tank
Under-floor heating pipes, etc.
Automotive plastic
fuel tank
EVAL , EVOH resin

Under-floor
heating pipes

Food packaging

Vacuum insulation panels© Copyright 2024 KURARAY CO., LTD.

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Gas barrier properties of EVAL
Comparison of gas barrier properties*Data from Kuraray Co., Ltd.
© Copyright 2024 KURARAY CO., LTD.

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Investment in a new EVAL

plant

Demand for food packaging expands globally (driven by increased
consciousness for reduction of food loss and circular economy)

Investment decision on new plant in Asia
To firm the position as the market leader
Place :

Kuraray Asia Pacific Pte. Ltd. (Jurong Island, Singapore)

Production capacity :EVOH resin, 18,000 tons/year
The front-end process will be constructed with a capacity of 36,000 t/y with a view to future expansion.
The back-end process is divided into two phases, with the first phase being implemented at this time.

Start operation :End of 2026

Investment amount

US$410 million© Copyright 2024 KURARAY CO., LTD.

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Global network of EVAL
Expand capacity in growing Asian market and strengthen global supply chain
Enhance technical service in the region (Southeast Asia)

RegionAntwerp, Belgium
35,000 tons/year2023

Tokyo
 OkayamaShanghaiMumbaiAnnual production capacity (tons)

Kurashiki
10,000 tons/yearBangkok

Singapore

Houston, the U.S.
58,000 tons/year+18,000 tons

Japan10,000

Europe35,000Americas58,000Asia

EVAL production site
 R&D center

Total

103,000

Expansion
2024～2026

Sites

End of 2026

10,000

Okayama＋5,00040,000Antwerp,Belgium＋5,00063,000

Houston,the U.S.

＋18,000

18,000Singapore+28,000

131,000

 Sales office© Copyright 2024 KURARAY CO., LTD.

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Why EVAL

is selected as environmentally friendly barrier material?

• Regulation for recycling packaging materials✓ Europe (Regulations for packaging and its waste)•2025: Extended Producer Responsibility (EPR) to come intoforce•

2030: Mandatory to replace to recyclable packagingmaterials

Recycle of polyolefin
Polyolefin
Adhesive resin✓ Laws and regulations are tightening in India and otheremerging economies.

Barrier material
Adhesive resin

Polyolefin

Typical structure
Flexible packagings• Mechanical recycling is becoming more common*✓ Mono-material, made only of polyolefin can be recycled✓ EVOH does not prevent recycling of polyolefin✓ EVOH can replace other barrier materials (aluminum foil,PVDC, vapor deposition PET or Nylon) which do prevent
polyolefin recycling.

Cups and trays

Bottles and tubes*Typical example of polyolefin: Polyethylene (PE) or Polypropylene (PP)

* A way of recycling. Re-melt packaging materials and reuse it as
packaging materials or daily commodities.
© Copyright 2024 KURARAY CO., LTD.

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Global demand outlook of EVOH resin

Continued high growth led by increased standards of living in emerging economies
Growing focus on food loss reduction
Increasing regulations concerning packaging materials and demand for environmentallyfriendly materials.

© Copyright 2024 KURARAY CO., LTD.

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This presentation contains various forward-looking statements which are based on the current expectations and assumptions of future events. All figures and statementswith respect to the future performance, projections, and business plans of Kuraray and its group companies constitute forward-looking statements. Although Kuraraybelieves that its expectations and assumptions are reasonable, actual results and trends of Kuraray’s performance could differ materially from those expressed or
implied by such figures or statements due to risks and uncertainties in the future business circumstances. The factors which may cause such difference include, without
limitation: (1) general market and economic conditions in Asia including Japan, the U.S., Europe and other regions; (2) fluctuations of currency exchange rates,
especially between the Japanese yen and the U.S. dollar and other foreign currencies; (3) changes in raw material and fuel costs; (4) industrial competition and pricefluctuations in Japan and international markets; (5) advance or delay in the construction of new plants and production lines; (6) successful development of new productsand technologies; and (7) changes in laws and regulations (including tax and environmental) and legal proceedings.
© Copyright 2024 KURARAY CO., LTD.