KUREHA CORPORATION
4023・Prime Market・Chemicals
Business
Kureha Corporation, founded in 1944, is a specialty chemical manufacturer built on three core pillars: Functional Products, which handles Polyvinylidene Fluoride Resin (PVDF), PPS Resin, PGA (Polyglycolic Acid) Resin, Spherical Activated Carbon, and other materials; Chemical Products, covering agrochemicals, pharmaceuticals, and industrial chemicals; and Resin Products, including the household wrap NEW Krewrap (Household Wrap) and fishing line Seaguar (PVDF Fishing Line). The company has 26 consolidated subsidiaries in Japan and overseas, and has built a global production and sales network across Japan, the United States, China, Europe, Vietnam, and other regions. It has also brought support services such as construction-related, environmental, transportation, and medical services in-house, operating as an integrated group. Revenue was ¥161,688 million (FY2026 (ending March 2026)).
Business Model
In the Functional Products segment, the company manufactures proprietary high-performance materials such as Polyvinylidene Fluoride Resin (PVDF), PPS Resin, and PGA (Polyglycolic Acid) Resin Processed Products, selling them to industries including EV batteries, shale gas, automotive, and medical. In the Resin Products segment, branded consumer goods such as NEW Krewrap (Household Wrap) and Seaguar (PVDF Fishing Line) generate stable cash flow. In the Chemical Products segment, long-term sales contracts for agrochemicals and pharmaceuticals (with BASF and others) support the earnings base. In-house services such as construction, environment, and transportation capture demand within the group and serve a complementary function that enhances cost efficiency.
Company Strengths
KF Polymer (Polyvinylidene Fluoride Resin) holds the world's top market share as a binder for ternary cathode materials, with production bases in Japan and China (Changshu). The company is also focusing on developing new grades compatible with LFP cathodes, and continued investment in its technology base is confirmed, including capital expenditure of ¥18,979 million in Functional Products for FY2026 (ending March 2026).
NEW Krewrap (Household Wrap) is a domestic staple brand with a history of over 60 years since its launch in 1960. Seaguar (PVDF Fishing Line) continued its active expansion into the Chinese market, achieving increased revenue and profit in FY2026 (ending March 2026). The Resin Products segment as a whole maintained a high operating margin of 18.8%, demonstrating the earnings stability of its consumer product brands.
The U.S. subsidiary Kureha PGA LLC manufactures PGA (Polyglycolic Acid) Resin and sells it for frac plugs used in shale oil and gas drilling. In FY2026 (ending March 2026), the company achieved increased revenue and profit driven by higher sales to medium- to high-temperature wells. Development of new grades for low- and ultra-low-temperature wells is being accelerated, with the company expanding its market share through an expanded grade lineup.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥191,277 million in FY2023 (ended March 2023) and has declined for three consecutive periods, reaching ¥161,688 million in FY2026 (ending March 2026), down 0.2% year on year. Operating profit deteriorated rapidly from ¥22,350 million in FY2023 (ended March 2023), and in FY2026 (ending March 2026) the company recorded an operating loss of ¥18,592 million following the recognition of ¥36,500 million in impairment losses on the Polyvinylidene Fluoride Resin (PVDF) business and manufacturing facilities for Kremezin (Agent for Chronic Renal Failure). Net loss attributable to owners of the parent was ¥10,693 million. The continued stagnation of the EV market was the main external factor, and the discontinuation of sales of heat-shrinkable multilayer film also weighed on revenue. On the other hand, segment operating profit for Functional Products improved from a loss of ¥1,991 million in the prior period to a profit of ¥2,134 million, indicating that underlying business earnings power, excluding impairment, has recovered to a certain extent. The company forecasts a recovery in operating profit to ¥11,000 million in FY2027 (ending March 2027).
Growth Strategy
Pursuing multifaceted growth across PGA, agrochemicals, and resin products, centered on the recovery of Polyvinylidene Fluoride Resin (PVDF) demand for ESS and EV applications
Demand for lithium-ion battery binders for automotive applications has been sluggish due to stagnation in the EV market, leading to an impairment loss of ¥33,996 million recorded in FY2026 (ending March 2026). Over the medium to long term, the company anticipates a recovery in demand for ESS (stationary energy storage systems) and EVs, and intends to pursue sales expansion and profitability improvement. Inventory adjustment remains ongoing, and identifying the timing of recovery remains a challenge.
PGA (Polyglycolic Acid) Resin Processed Products used in shale oil and gas drilling applications achieved higher sales in FY2026 (ending March 2026), contributing to increased revenue in Functional Products. Against the backdrop of resilient conditions in the shale gas market, the company will continue to pursue sales expansion and profitability improvement.
In addition to gradual growth in demand for automotive applications, demand for PPS Resin used in optical communication components for data centers is also expanding, and the company expects solid demand to continue over the medium to long term. In FY2026 (ending March 2026), sales increased, contributing to improved profitability in Functional Products.
The company is advancing development of new Agricultural & Horticultural Fungicides formulations, targeting launch around 2030. In FY2027 (ending March 2027), testing expenses related to new formulation development are expected to have a short-term impact on profitability, but this is positioned as an upfront investment to strengthen future competitiveness. Renewed expansion of sales in the European market is also expected following the re-registration of metconazole in Europe.
The Consumer Goods segment, including NEW Krewrap and Seaguar, achieved increased revenue and profit in FY2026 (ending March 2026) as well, maintaining high profitability (operating margin of 18.8%). In the commercial food packaging materials segment, following the discontinuation of heat-shrinkable multilayer film sales, the company will pursue sales expansion and profitability improvement. It will also continue to maintain international competitiveness through manufacturing at its Vietnam base.
From FY2025, the company introduced a dividend policy targeting a dividend on equity (DOE) ratio of approximately 5%. The annual dividend for FY2026 (ending March 2026) is forecast at ¥214 per share (total dividends of ¥8,178 million), and ¥216 per share is forecast for FY2027 (ending March 2027). In May 2026, the company resolved to set an upper limit on treasury share holdings of approximately 5% of total shares issued, with any excess to be canceled in principle. The company plans to continue targeting a DOE of approximately 5% under its next medium-term management plan (FY2026-FY2028).
Last updated: July 19, 2026