Kuraray’s Isoprene unit turns profitable as sales rise 15%

Kuraray Co. Ltd has reported first-half sales of Yen46 billion (€247 million) for its Isoprene segment, a 15.0% year-on-year increase from Yen40 billion in the same period of 2025. The segment also swung to an operating profit of Yen1.8 billion, reversing a loss of Yen1.3 billion in the first half of 2025, marking an improvement of Yen3.1 billion, Kuraray announced on 7 August. The company attributed the performance to reduced depreciation and amortisation expenses (a Yen2.8 billion impact) and inventory valuation differences, alongside a JPY400 million contribution from higher volumes. Kuraray noted that overall volumes in the Isoprene chemicals and elastomers business declined due to a pull-forward in demand in 2025 driven by US tariff policies and stagnant construction demand in China. In the US, elastomer sales volumes rose but faced intensified competition from Asian rivals in Europe and other regions. Volumes increased for Genstar thermoplastic elastomers (TPEs), driven by higher sales in electric & electronic and automotive applications. The Isoprene segment’s operating income benefited from both cost reductions and volume growth, particularly from Genstar sales.