Monday, April 25, 2011

No. 269: Growing demand for high performance food films (April 26, 2011)

Toppan Printing will buy the business of high performance films from Kureha to cope with the growing demand for high performance food films. Toppan will buy Kureha’s goodwill and intellectual property right of Besela, Kureha’s high performance film, for one billion yen and produce Besela in its plant with licensing of technology. Kureha has excellent technology to prevent seal performance from decreasing even if film is folded, but has only a minimal share in the world market. Taking into consideration the business efficiency, Kureha decided to sell the business to Toppan. Toppan produces high performance films GL Film that prevents oxidation and humidity of food and seals precision components, and has a 40% share in this product line in the world. With the spread of retort pouch foods worldwide, demand for high performance films is growing fast. The world market of high performance food films is estimated at 400 billion yen at present and expected to grow to 600 billion yen in 2015. Toppan plans to develop new products making the best use of Kureha’s technology. Kureha’s decision is totally rational because it is hardly possible for a technology to survive in the world market without a sufficient share in the world market, however excellent it is.

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