Acquisition of Industrial Reactivated Carbon Business by Calgon Carbon Corporation

 Kuraray Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Hitoshi Kawahara) decided that Calgon Carbon Corporation, a U.S. subsidiary (President and CEO : Stevan R. Schott, hereafter Calgon Carbon) to acquire the industrial reactivated carbon business from Sprint Environmental Services, LLC (President : Dave Nelson).

Background of the Acquisition

 In 2018, Kuraray acquired Calgon Carbon, the world’s largest activated carbon manufacturer, and now has a wide range of activated carbon offerings, such as bituminous coal-based, wood-based, coconut-based, and reactivation services. As a total solution provider in water and air purification, we are expanding our activated carbon business, which contributes to improving the natural and living environment.

 In the activated carbon business, significant growth is expected in industrial reactivated carbon market in the U.S. To maintain or expand our market share, production capacity increase is essential. Currently, Calgon Carbon’s industrial reactivated carbon production facilities are concentrated in the eastern U.S, but with this acquisition, we will be able to acquire an important strategic base in the Gulf of Mexico region which can also cover the Midwest region. After the acquisition, we are looking to expand reactivated carbon facilities not only for industrial applications, but also for drinking water at various sites including this one. Significant growth in demand is expected due to tightening of PFAS regulation in the U.S. and Calgon Carbon is studying significant capacity increases as well as pursuing contractual commitments with important customers.

 Kuraray Group has set the sophistication of business portfolio as a key measure in the Medium-term Management Plan, "PASSION 2026" and is allocating resource to core businesses and distinguishing downsizing or withdrawing businesses. We continue to sophisticate our business and product portfolio in consideration of social and environmental value as well as economic value.

Overview of the transferor

Company Name          Sprint Environmental Services, LLC
Head Office                 Crosby, Texas, USA
Representative            Dave Nelson (President)
Establishment              2017
Major businesses        Manufacture and sale of industrial reactivated carbon and the rental business of industrial equipment

Overview of the transferee

Company Name          Calgon Carbon Corporation
Head Office                  Pittsburgh, Pennsylvania, USA
Representative             Stevan R. Schott (President and CEO)
Establishment              1942
Capital                          618,000 USD (100% owned by Kuraray Holdings USA)
Major businesses         Manufacture and sale of activated carbon and water treatment equipment

Future OutlookThe business transfer will be done by the end of June 2024. In addition, this transfer is not expected to have a material impact on Kuraray’s consolidated performance. Going forward, we will promptly disclose any matters requiring announcement, such as revisions to earnings forecasts.