Kuraray will transfer its Chinese methacrylic resin subsidiary to Jiangsu Double Elephant to streamline operations, safeguard technology, and support long-term business continuity.
Kuraray Co., Ltd. has announced its decision to transfer all shares of its wholly owned subsidiary, Kuraray Methacrylate (Zhang Jia Gang) Co., Ltd., to Jiangsu Double Elephant Group Co., Ltd. The agreement has already been finalized through the signing of a share transfer contract, marking an important strategic shift for Kuraray as it reevaluates its methacrylate operations in response to changing market conditions.
Kuraray Methacrylate (Zhang Jia Gang), established in 2004 and located in Zhangjiagang City, Jiangsu Province, has built its business around the production of cast methacrylic resin sheets. Over the years, the company became known for supplying high-quality materials, particularly for acrylic bathtub applications used by luxury brands. The facility has also served as a key supply base for cast sheets exported to Japan, allowing Kuraray to maintain a reliable production network across Asia.
Despite its strong technological capabilities and reputation for quality, the subsidiary has faced increasing difficulties in recent years. The Chinese real estate market has experienced prolonged uncertainty, which has reduced demand for home-related materials, including acrylic bathtubs. This decline in demand has directly affected the subsidiary’s sales performance and overall profitability. As these challenges intensified, Kuraray began assessing how to strengthen and streamline its global methacrylate business.
Under its medium-term management plan, “PASSION 2026,” Kuraray has committed to creating a more focused and efficient business portfolio. This includes adjusting production capacity within its methacrylate segment, particularly for methyl methacrylate (MMA). Given the significant shifts in the Chinese market and the need to optimize global operations, Kuraray determined that transferring the subsidiary to a company with greater scale and specialization in the methacrylate sector would provide the most sustainable path forward. Jiangsu Double Elephant Group, known for having the largest MMA production capacity in China, was identified as the most suitable partner. Kuraray believes that under this new ownership, the technologies and strengths it has developed at the subsidiary will continue to be effectively utilized and that the cast sheet business will have an opportunity to grow in line with market needs.
The transfer is scheduled to take place between mid-February and early March 2026. Following the transfer, Jiangsu Double Elephant Group intends to maintain stable operations at the existing plant and retain the current workforce, ensuring continuity and stability for employees. The company also aims to expand its market presence both in China and internationally.
Kuraray has additionally reached an agreement to continue sourcing PARAGLAS™ products for the Japanese market from the same facility even after the ownership change. To support a seamless handover, Kuraray will work closely with Jiangsu Double Elephant Group and will ensure that all existing customers are properly informed throughout the transition period.
