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Japanese Research in Business History 2013 │ 30

The Development of Domestically Produced Synthetic Vinylon and its Substitution of Natural : The Case of

Kyōhei Hirano Kobe University

Introduction

n arTicle in the May 31, 1955 edition of the New York Times introduced a developed and manufactured in a , saying: A new miracle fiber, vinylon, developed by the Japanese, is also to be featured. It is said to absorb moisture and may eventually replace imported as Japan’s staple cloth. This article focuses on the case of Kurashiki Rayon Company (Kuraray)1, a major player of Japanese textile industry, to discuss the processes of industrialization and marketing, by which this miracle fiber, which was expected to become a universal fiber to replace cotton and , was developed for mass production in Japan and subsequently

1. Throughout the period covered by this article, Kurashiki Rayon Co., Ltd. [Kurashiki Reiyon Kabushiki Kaisha] experienced several name changes. During the prewar years, the company was known as Kurashiki Weaving Company [Kurashiki Kenshoku Kabushiki Kaisha]. It later became Kurashiki Rayon Company [Kurashiki Reiyon Kabushiki Kaisha], and is currently known as Kuraray Co., Ltd. [Kabushiki Kaisha Kurare]. To maintain consistency and to avoid confusion, this article will use its present English name Kuraray throughout, with proper full name of the company noted in the footnote for reference. 86 JAPANESE RESEARCH IN BUSINESS HISTORY 2013 │ 30 established its market in a different role from the initial expectations.2 That is, the paper will give a clear picture how the fiber, which was developed during World War II as a replacement, found new value in a different role in the postwar period, and show the prerequisite of the rapid development of the synthetic fiber industry. The important point is the framework and its change, which originally aimed to utilize synthetic fibers to substitute natural ones under the severe resource limitations. Since the beginning of industrialization in the late 19th centuries, Japan had overcome limitations on access to resources such as industrial raw materials through international trade. However, during the 1930s the international political climate and trade conditions worsened and made acquisition of raw materials by international trade increasingly difficult. During the years leading up to and through World War II, the Japanese economy became increasingly autarkic, and in response, attempts were made to acquire resources through military advancement into the continental and Southeast Asia and to use science to develop replacement products. Major examples of these replacement products included synthetic petroleum, synthetic rubber, synthetic resin, and synthetic fiber. Although some of these replacement products that were developed under wartime conditions were abandoned in the postwar years, but synthetic rubber, resin, and fiber became materials that supported the development of mass consumption society and made significant advancement in the postwar era. The idea of replacing wool and cotton, which depended heavily on imports, by chemical fibers, became prominent during the 1930s with the increase in trade frictions and the formation of isolated economic blocs. This idea reached its height during World War II with the increasing autarky of the Japanese economy. During the wartime years, although the development of synthetic fibers received the most effort, other methods such as experimentation with making fibers from proteins derived from soybeans and fishmeal took place. The Japanese made every effort to develop sources of fiber, which was in severe shortage. This idea continued in the immediate postwar period when limitations on international trade

2. The history of Kuraray is detailed in Kabushiki Kaisha Kurare Shashi Hensan- bu (ed.), Kurare 60-nenshi [60 year history of Kuraray] (Unfinished manuscript) (: Kabushiki Kaisha Kurare, 1987). Unless otherwise noted, details of Kuraray’s case are taken from this work. Hirano: The Development of Domestically Produced Synthetic Fiber Vinylon... 87 remained in place, but as trade recovered, the idea faded away. However, the production volume of synthetic fiber increased from the initial production in 1950 of 450 tons to 28,781 tons in 1956, only second to the United States. The growth of synthetic fiber took place not only in Japan but worldwide, and as a result, the era of “King Cotton” came to an end. On the one hand, this result developed out of the initial goal of replacing natural fibers with synthetics. On the other hand, there was a qualitative change in the use and purpose of synthetic fibers from passive substitution, using synthetic fibers to replace natural fibers to overcome wartime shortages, to active substitution in the postwar years of natural fibers by synthetic fibers because of the new characteristics, function, and attractiveness of synthetic fibers that differentiated them significantly from natural fibers. Thus the quality of the synthetic fibers and the demand for new products with novel characteristics eventually supplanted the demand for natural fibers. The history of synthetic fiber industry in Japan has been studied previously from different viewpoints such as industrial history and business history. From the perspective of industrial history, the replacement of natural fibers by synthetic fibers has been widely accepted as a characteristic of the autarkic wartime economy.3 More specifically, history of chemistry studies have examined the research and development of synthetic fibers at universities and companies from the wartime years to mass production by placing it in the context of the birth of macromolecular chemistry and the general history of chemistry.4 These studies focus on the creation of synthetic fibers as a result of societal demand, and reflect the passive substitution approach. On the other hand, business history and history of daily life examine the reaction of firms and consumers to the new technology and material, synthetic fiber, in the context of marketing strategies in the postwar years and the increasing acceptance of western

3. Uchida Hoshimi, Gendai no sangyō: Gōsei sen’i kōgyō [Modern industry: Synthetic fiber industry], Shintei-ban [New edition] (: Tōyō Keizai Shinpōsha, 1970) is a major work from this perspective. With respect to industries in other countries, Jonas Scherner, “The beginnings of Nazi autarky policy: The ‘National pulp programme’ and the origin of regional staple fibre plants,” Economic History Review, Vol.64, Issue 4, November 2008, is a study of chemical fiber industry in wartime Germany. 4. Furukawa Yasu, “Sen’i kagaku kara kōbunshi kagaku e: Sakurada Ichirō to Kyoto gakuha no tenkai [From fiber chemistry to polymer chemistry: Sakurada Ichirō and the development of the Kyoto school],” Kagakushi kenkyū 39, no.1 (2012). 88 JAPANESE RESEARCH IN BUSINESS HISTORY 2013 │ 30 style dress.5 These studies highlight the process by which synthetic fiber gained economic value in the market, and reflect the “active substitution” approach. All of these studies are empirically based within each approach, but none adequately examine the transition from passive substitution to active substitution. This article argues that the two phases of development and industrialization under severe resource limitations during the wartime and the immediate postwar years, and the development of new markets as the resource limitations eased need to be considered as a single continuous process. This transformation in the nature of substitution is an important point in how synthetic fibers found value in the postwar society even though the development began as a replacement commodity during the wartime years. This is also a pivotal point in the history of chemical fibers, especially the early development of synthetic fibers.

I. Wartime Development of Synthetic fibers at Kuraray

During the wartime controlled economy since the onset of the war in China, the government implemented increasingly restrictive limitations on all aspects of production in peacetime industries such as textiles. However, rayon staple fiber received protection and encouragement in an effort to secure adequate textile raw materials. Rayon staple fiber was used extensively in clothing but even this industry eventually declined due to lack of raw materials and labor. In 1938, as the business conditions in the textile industry began to deteriorate, E. I. Du Pont de Nemours & Company in the United States made public information about . This development provided significant shock to those in the textile industry in Japan, and prompted some universities and textile companies to establish research and development programs in synthetic fibers. Three significant accomplishments from this early effort should be noted. The first was the research and development of fibers made from

5. Hirano Kyōhei, “Sengo no nihon kigyō no gijutsu sentaku to gijutsu hatten: Tōyō Bōseki no gōsei sen’i e no shinshutsu wo chūshin toshite [The technological choice and development of Japanese firms during postwar period: A case of the advance to synthetic fiber of ],” Keieishigaku 42, no.3 (2007); Koizumi Kazuko (ed.), Yōsai no jidai: Nihonjin no ifuku kakumei [The age of western sewing: The Japanese people’s clothing revolution] (Tokyo: Shadan Hōjin Nōsan Gyoson Bunka Kyōkai, 2004). Hirano: The Development of Domestically Produced Synthetic Fiber Vinylon... 89 polyvinyl alcohol (PVA)6 at Kyoto Imperial University. Researchers Sakurada Ichirō7, Rhee Sung-gi, and Kawakami Hiroshi succeeded in improving the water resistance of PVA by treating its hydroxyl group with formalin in order to block its effects. This result was published in October 1939 and named Synthetic No.1 (Gōsei Ichigō). This research project began with the purpose of competing against nylon but was transformed into development of synthetic fiber that can substitute for cotton and wool, which became difficult to import due to the war. Secondly, at the Japanese Synthetic Fiber Research Association (Zaidan Hōjin Nihon Gōsei Sen’i Kenkyū Kyōkai), a public-private- academic research consortium facility established in January 1941 for practical research on industrialization methods for synthetic fibers, experiments toward intermediate industrialization began in February 1942 using the facilities of Kyoto Imperial University’s Institute for Chemical Research (Kyōto Teikoku Daigaku Kagaku Kenkyūsho). These experiments continued through March 1944. Toward the end of World War II, research for resin continued in response to military demands. Finally, Kanebo, Ltd.8 began its research on Kanebien, a PVA fiber in July 1939. Toward the end of 1941, experimental production began at the intermediate industrialization test facility within its Yodogawa Plant. Later, in response to military demands, production was shifted to film. At Kuraray9, search for new fibers around this time was beginning to coalesce around the development of PVA fibers. Prior research on the development of acetate, which had begun in the years prior to the war, was terminated in 1940 due to the high cost of industrialization. But the knowledge and experience acquired through this research led to the development of PVA fiber: to focus on vinyl acetate, a by-product of the chemical reaction to synthesize acetic anhydride, which is used in the

6. Willy O. Herrmann and Wolfram Hähnel invented PVA in 1924 in Germany and applied for a patent for its fiberization in 1931. However, because this fiber was water soluble, the only use for which it was considered was as suture thread in medicine. 7. Japanese and North Korean names are presented in their native order, with family name first, except in references. 8. During this time Kanebo, Ltd. was known as Kanegafuchi Cotton Spinning Co., Ltd. [Kanegafuchi Bōseki Kabushiki Kaisha]. The currently well-known name Kanebo is an acronym derived from taking the first characters from each of the two words in the old name: Kanegafuchi [kane] and Spinning [bō]. 9. At this time, Kuraray operated under the name Kurashiki Silk Weaving Co. Ltd. [Kurashiki Kenshoku Kabushiki Kaisha]. 90 JAPANESE RESEARCH IN BUSINESS HISTORY 2013 │ 30 production of acetate. Tomonari Tsukumo10, the leader in synthetic fiber development at Kuraray, emphasized the production of synthetic fibers from domestic resources. He focused on carbide, which could be mass-produced without any reliance on imports. Carbide can be used to produce acetylene, which is raw material for vinyl-type synthetic fiber, and Tomonari considered this type of fiber as the best option. Kuraray had begun research on compounds that induce acetylene such as acetic anhydride. Following the announcement of the compound Synthetic No.1, Kuraray decided to focus on the establishment of a unified production process of PVA fiber from carbide, and sent technicians to study with Sakurada at Kyoto Imperial University.11 Kuraray had already established a synthesis method for acetic anhydride, and continued with research on gaseous reaction of acetylene and acetic acid. In December 1940, Kuraray complete the synthesis method for vinyl acetate. Concurrently, Kuraray established a new research institute on the grounds of its Okayama Plant, and built facilities for intermediate industrialization experiments in carbide (May 1940), synthetic medicines (September 1940), and PVA and PVA fibers with the capacity for daily production of PVA at 10 kg/day. While the basic production method of PVA fiber was known, production method beyond acetylene was not firmly established on an industrial scale and this had to be developed independently by Kuraray. Because of the wartime controls on the economy, the research faced many difficulties. However, by October 1942, Kuraray completed its research on basic technology and began construction for a facility for experimental production of PVA and PVA fibers at the daily production

10. Tomonari Tsukumo studied mechanical engineering at the Department of Mechanical Engineering at Meiji College of Technology [Meiji Senmon Gakkō Kikai Kōgakka] and the Department of Mechanical Engineering in the Faculty of Engineering at Tohoku Imperial University [Tōhoku Teikoku Daigaku Kōgakubu Kikai Kōgakka] with scholarship support from Ōhara Magosaburō, the president of Kuraray, and entered Kuraray in April 1927, shortly after his graduation from university and Kuraray’s founding as a rayon business. From his student days, Tomonari had been interested in fiber chemistry. In 1930, Tomonari went to Germany to study, met Sakurada there and developed a friendship, and promised each other that they would go into polymer chemistry research. 11. Kuraray employed many graduates of Department of Industrial Chemical in the Faculty of Engineering at Kyoto Imperial University [Kyōto Teikoku Daigaku Kōgakubu Kōgyō Kagakuka], such as Nakamura Michio, who was in the same grade with Sakurada, and was presumed to be available to the information of Synthetic No.1. Hirano: The Development of Domestically Produced Synthetic Fiber Vinylon... 91 rate of 200 kg. The construction was completed in December 1942. The facilities for the experimental production and polymerization of vinyl acetate, however, were not completed due to accidents and air raids. At this experimental facility, production emphasized military applications such as films for military equipment to be used in airplane fuel tank, undersea transport containers for petroleum, balloon bombs, and the like. At Kuraray, as with other organizations, the development of fiber did not proceed according to plans, but Kuraray eventually succeeded in experimental production of Synthetic Kurara (Gōsei Kurara), a wool-like PVA fiber. At this time, it was widely believed that both long and short PVA fibers could be used as fiber for clothing in a wide variety of ways but Synthetic Kurara was only made into small quantities of work gloves and socks. Thus, this fiber did not contribute toward alleviating fiber shortage during the war. This path of research and development that took raw materials strongly into consideration resulted not only from the lack of imports due to the war but also from Tomonari’s strong belief in the resource approach, which tried to make resources in shortage through the power of science. Commenting on the textile industry of the time, Tomonari stated, It is possible to grow cotton plants to get cotton and to raise sheep to get wool, while it’s also possible to plant trees to make man-made fiber and to dig coal from underground to manufacture synthetic fiber…. The method to be chosen must take into consideration the country’s situation and access to resources. The time calls for not only the development of natural resources and the excavation of buried resources but the nurturing of new resources utilizing power of nature and creation of new fibers through the power of technology.12 Thus, Tomonari advocated self-sufficiency in fiber resources using synthetic fibers. At Kuraray’s research institute where Tomonari served as the director, the basic approach was the establishment of a resource industry, and the production of fibers and their application. Thus, their research emphasized the establishment of production technology for PVA fiber and resin from raw materials in a unified process. It is significant that the concept of backward integration was established clearly as the basic approach, and

12. Tomonari Tsukumo, “Shigoto to tomo ni [Along with work],” Renraku geppō (Kurashiki Kenshoku) [Monthly bulletin of Kurashiki Silk Weaving], March 1940, 6. 92 JAPANESE RESEARCH IN BUSINESS HISTORY 2013 │ 30 was reflected strongly later in the path of product development in the postwar years.13 Despite the many difficulties, the development of PVA fiber had proceeded almost to its goal of industrial production. However, the air raid of Okayama in June 1945 completely burned down the experimental facilities and all results of the research and development, and this forced the research to halt temporarily. Thus, the basic technology of PVA fibers was established during World War II. At the same time, the fundamental idea on the synthetic fibers was also established at this time that the insufficient fiber resources would be replaced by synthetic fibers produced by domestic resources.

II. Postwar Recovery and Industrialization of Vinylon at Kuraray

At the conclusion of World War II, Kuraray was unable to resume production easily except at the Saijō Plant where only the rayon production facilities remained. The new president, Ōhara Sōichirō, who succeeded Ōhara Magosaburō, decided in October 1945 to reconstruct the rayon business and to resume work on synthetic fibers. Initially, the development of PVA fiber resumed by repairing the burned out facilities at the Okayama Plant, but with the occupation of the Okayama Plant by the Allied Forces, the experimental facilities were moved to the Kurashiki Plant. With the predicted difficulties in obtaining acetylene in the immediate postwar period, this facility was structured for unified production from charcoal carbonization to fiber production. The facility had the daily production capacity of 1.2 tons of charcoal, 3 tons of carbide, 400 kg of vinyl acetate, 200 kg of PVA, and 200 kg of PVA fiber.14 This facility conducted research on all phases required in the industrial production of PVA fiber, including the following six processes: 1) production of acetic acid from acetylene using acetaldehyde; 2) production of vinyl acetate by gaseous reaction of acetylene and acetic acid; 3) production of polyvinyl acetate through solution polymerization of

13. At Kuraray, there was a plan to use forests as a source of carbon, so research on charcoal carbonization was initiated. During the war and the in the postwar period when smokeless coal and cokes were difficult to obtain, this research was useful as a source for carbide. 14. The experimental facilities for charcoal and carbide were shut down in October 1949 when the supply of carbide recovered enough to purchase it from the market. Hirano: The Development of Domestically Produced Synthetic Fiber Vinylon... 93 vinyl acetate; 4) production of PVA by saponification of polyvinyl acetate; 5) recovery of acetic acid through sulfate decomposition; and 6) thread spinning using vertical spinning machine.15 In April 1948, the experimental facility, which was burned down in an air raid, was completed and began operation. At the opening ceremony, Sakurada proposed that the PVA fiber be named Vinylon, and this proposal was accepted officially in May. Both Kuraray and Toray16 had begun the development of nylon during the wartime years, and in the immediate postwar years, both companies sought to rebuild their rayon business and simultaneously proceed with the development of synthetic fibers. In 1948, in addition to Kuraray two other companies had experimental production facilities: Synthetic No.1 Public Corporation (Gōsei Ichigō Kōsha) at 35 kg/day, and Mitsubishi Chemical Corporation (Mitsubishi Kasei Kōgyō Kabushiki Kaisha) at 5 kg/day. In addition, Kanebo had plans for resumption and Toyobo17 had resumed research. In general, most textile companies focused on vinylon because of the shortage of raw materials for spinning, availability of raw materials for synthetic fiber, and access to patents domestically and internationally. At Kuraray, it was thought that the future development of vinylon was more promising than nylon for the following five reasons. First, vinylon’s production process was relatively simple and required few ingredients. Secondly, there was more mass market potential for vinylon in terms of product quality and cost. Thirdly, given that the importation of raw materials for fiber production was unlikely, vinylon was a good option from the perspective of cost and raw materials to secure a minimum amount of fiber. Fourth, due to the domestic purchasing capacity and the supply of carbolic acid, it was difficult to envision daily nylon production beyond 10 tons. Finally, it was difficult to imagine mass demand for nylon like stocking in the United States given the purchasing power and dress of Japanese women.18

15. Because nylon had a high melting point, it was necessary to develop a melted spinning method, technology especially developed for synthetic fibers. However, vinylon was able to use technology and methods perfected with rayon such as wet spinning. 16. The company named Toyo Rayon Co., Ltd. [Tōyō Rēyon Kabushiki Kaisha] in the immediate postwar years is currently known as , Inc. [Tōre Kabushiki Kaisha]. For consistency, this article will refer to this company as Toray. 17. Toyobo Co., Ltd. was known at this time as Toyo Cotton Spinning Co., Ltd. [Tōyō Bōseki Kabushiki Kaisha]. 18. Tatsumi Seizō, “Shiruku, reiyon, biniron [Silk, rayon, vinylon],” Renraku geppō 94 JAPANESE RESEARCH IN BUSINESS HISTORY 2013 │ 30

In August 1947 as the construction of experimental production facility continued, Ōhara resigned Kuraray’s presidency and was appointed the deputy director of the Price Agency (Bukka-chō). In the postwar textile industry, on the one hand, silk could no longer be expected to resume its position as the exclusively foreign currency earning industry due to the advent of nylon; on the other hand, once the production facilities recovered from wartime damages and production ramped up to full capacity, it was expected that import of cotton and wool would increase dramatically. Thus, a significant trade deficit seemed unavoidable. Moreover, with the loss of colonial territories, Japan required large amounts of imported food. Thus, keeping down the amount of cotton and wool imports was imperative in establishing self-sufficiency and independence of the Japanese economy.19 As the deputy director of the Price Agency, Ōhara had to face these issues in the Japanese economy from a macroeconomic perspective, and keenly felt the need for industrialization of synthetic fibers. Thus, in April 1948, he resigned his government position and returned to the presidency of Kuraray in June 1948. In the meantime, Tomonari continued to argue that, [Japan’s] fiber resources are extremely poor. Not only is the land small, and layers of mountains loom high and cover the nation. Arable land and plains are limited, and from the perspective of climate not appropriate for growing cotton or raising sheep…. Therefore, production of synthetic fiber, which does not depend on the production power of land, has extremely significant meaning.20 Furthermore, Tomonari thought that the cost of vinylon produced with domestic resources will become low with the advancement of technology and, Vinylon’s rich possibilities for mixed spinning with other fibers and its

(Kurashiki Reiyon) [Monthly bulletin of Kurashiki Rayon], September 1949, 5-7. 19. Around 1949, Ōhara Sōichirō had said, “We were very pessimistic then because in order to secure imports of food, it wouldn’t be possible to import industrial raw materials. So we [made up our mind] that we would bet our whole company on it and was determined to overcome whatever difficulties that may arise.” Tsuru Shigeto, “Nihon no gijutsu to shigen no ue ni: Kurashiki Reiyon shachō Ōhara Sōichirō-shi ni kiku [Building on Japan’s technology and resources: Interview with Kurashiki Rayon’s president, Mr. Ōhara Sōichirō],” Shisō no kagaku [Science of ideology], No.8, August 1959, 7. 20. Tomonari Tsukumo, “Biniron kōgyō no keizaiteki igi [Economic purpose of vinylon industry],” Keizai ōrai [Monthly economy report], Vol.1, No.8, October 1949, 50-51. Hirano: The Development of Domestically Produced Synthetic Fiber Vinylon... 95

durability will promote the blending of vinylon with natural fibers or rayon, and vinylon will play an important role in the new era of fiber application. Thus, vinylon will participate in the process of establishing self-sufficiency in fibers and play an important role in the international trade in value-added production. In these ways, vinylon will become an axis in the recovery of the Japanese textile industry and Japanese economy in general.21 Thus, Ōhara’s perspective on the economy and Tomonari’s perspective on resources merged together in high expectation for vinylon. In January 1949, Ōhara decided on industrialization of vinylon, and in the following month, construction of a factory with daily production capacity of 20 tons was proposed. Because this plan required investment of 3.6 billion yen, significantly more that Kuraray’s capitalization of 250 million yen, some in the management advised caution but with the strong determination expressed by Ōhara and Tomonari, the Board of Directors voted for industrialization at its February meeting. With such large-scale investment in facilities, the Chemistry Bureau at the Ministry of Commerce and Industry (Shōkō-shō Kagaku-kyoku) and chemical companies raise objections to backward integration of PVA production to include raw materials; however, Ōhara maintained unified production because of his belief in its importance from the perspective of technology.22 This strategy was beyond the normal framework of the fiber business, but since Kuraray’s research and development was characterized by the continuous production from raw materials, it was matter of course that Kuraray took this strategy. In the end, by dividing the plan into two phases and reconsidering the facilities for weaving, knitting and dyeing, the construction budget was reduced to 1.41 billion yen. In preparation for this expansion Kuraray changed its name from Kurashiki Silk Weaving to Kurashiki Rayon in April 1949, and increased its capitalization to 750 million yen in July. At the same time, Kuraray had implemented a public relations campaign to promote vinylon at exhibition sales. In October 1949, Kuraray decided to expand the capacity of its PVA and vinylon experimental production facilities to 1 ton/day each, and began construction on a new factory.

21. Ibid., 51. 22. Ōhara Sōichirō, “Biniron no nenpu [Historical timetable of vinylon],” Renraku geppō (Kurashiki Reiyon) [Monthly bulletin of Kurashiki Rayon], June 1961, 5. 96 JAPANESE RESEARCH IN BUSINESS HISTORY 2013 │ 30

In May 1949 at a meeting of senior ministry officials in the Ministry of Commerce and Industry, a vote was taken on the agenda item titled “On the rapid development and establishment of the synthetic fiber industry (Gōsei sen’i kōgyō no kyūsoku kakuritsu ni kansuru ken).” This decision named one forerunner company each for nylon and vinylon and provided concentrated assistance and preferential treatment in terms of capital, materials, taxes and other assistance. As a result of the track record since the prewar years and the enthusiasm of senior management and engineers, Toray was selected for nylon and Kuraray was selected for vinylon. In the following month, the Resources Research Council (Shigen Chōsakai) of the Economic Stabilization Board (Keizai Antei Honbu) issued the “Recommendation to nurture the synthetic fiber industry (Gōsei sen’i kōgyō no ikusei)” to the government. The government’s policy to develop a synthetic fiber industry was implemented over time based on these ministry decisions and recommendations, and these developments opened the path to industrialization of synthetic fiber in Japan. The decision to industrialize vinylon was made from a broad perspective including breakthrough in the lack of resources, improvement in the international trade balance, and improvement in the lack of fiber, and the decision strongly reflected the recognition and desire regarding society, economy, and synthetic fiber on the part of some of the senior management and engineers at Kuraray. Thus, the industrialization of vinylon was much more than just to make profit for a single company but to rescue Japan from the devastation of war.

III. Vinylon as “Essential fiber”

With the onset of in June 1950, American policy toward Japan changed significantly and the environment surrounding the textile industry changed as well. Import of raw cotton increased dramatically in 1950 due to the resumption of free trade in the private sector and the rapid rise in demand for cotton products due to the Korean War. So the severe shortage in fiber raw materials eased over time. However, because lots of the cotton products were exported, domestic demand for rayon filament and staple fiber increased, and their production recovered as a result. In September 1950, Toyama Plant, with daily PVA production capacity Hirano: The Development of Domestically Produced Synthetic Fiber Vinylon... 97 of 5 tons was completed.23 Next month, facility for vinylon staple with daily production capacity of 5 tons was completed at the Okayama Plant. In November, Toyama Plant began production of PVA. Ōhara made the following remark about vinylon produced at the Okayama Plant, saying [It] has the characteristics of a general synthetic fiber, but it is not a type of synthetic fiber with one especially superior characteristic and has many characteristics. In other words, it is closer to cotton, or wool, or silk. Therefore, this does not fall into the category of synthetic fiber as “additional fiber,” where cotton and wool are treated as “essential fibers” and synthetic fibers with characteristics that essential fibers do not have are desired, as in the United States…. Vinylon should pioneer its future more as essential fiber rather than additional fiber.24 Vinylon was expected to be a universal fiber that was useful in every purpose. Tomonari, who led the development process, also thought that Some types of synthetic fiber will be valued highly as supplemental fiber (additional fiber) with a special characteristic, while other types of fiber will develop as principal fiber (essential fiber) with the reduction in prices.25 Thus, vinylon began amidst great expectations that it would become a large-scale general-purpose synthetic fiber that could replace cotton, wool, and . The Economic Stabilization Board’s recommendation had also stated that with daily production of 150 tons, import of raw cotton and wool would be virtually unnecessary. In addition to Kuraray, other companies showed interest in vinylon as well. At Unitika26, daily production of 3 tons began at its Sakoshi Plant in October 1950 following the purchase of Synthetic No.1 Public Corporation, which was established on the basis of technology developed at Kyoto Imperial University. At Kanebo, industrialization was delayed

23. Toyama Plant was sited with logistics for the supply for carbide in mind, and located next to the Toyama Plant of Co., Ltd., which supplied the plant with carbide, oxygen, nitrogen and other materials. 24. Ōhara Sōichirō, “Biniron ni tsuite [On vinylon],” Renraku geppō (Kurashiki Reiyon) [Monthly bulletin of Kurashiki Rayon], August 1952, 10-12. 25. Tomonari Tsukumo, “Hatten wo mae ni ononoku gōsei sen’i kai [Synthetic fiber industry shivers in anticipation of take off],” Daiyamondo [Diamond], Vol.40, No.29, September 1952, 27. 26. The company currently known as , Ltd. [Kabushiki Kaisha Yunichika] is called Greater Japan Cotton Spinning Company [Dainippon Bōseki Kabushiki Kaisha] at this time. For consistency, this article will use Unitika throughout to refer to this company. 98 JAPANESE RESEARCH IN BUSINESS HISTORY 2013 │ 30 due to its return to cotton spinning and internal confusion but experimental production continued at the Yodogawa Plant. On the other hand, some companies were reserved in their attitude. For example, Toyobo decided against industrialization for the following reason: although vinylon had potential as specialized industrial work clothing because of its tolerance to friction and chemicals but it had little attractiveness as general because of its problems with dyeability, elasticity, and hot water tolerance.27 Around this time, the general perspective on vinylon was that it was destined to become an “essential fiber” to replace natural fibers. However, on the production floor, it was necessary to implement a plan of “making everything with it and selecting the good outcomes because it was a completely new fiber and its characteristics were not well known.”28 This course of action began with fabric for clothing, such as fabric for adult male and female clothing in blends with wool or rayon staple fiber, 100% vinylon fabric for dress shirts, knit fabric, and socks. In the first year of production, the cost of vinylon was 794 yen/kg, about the same as Tomonari’s estimate. This cost was lower than wool but significantly higher than raw cotton.29 However, despite the fact that there were problems with consistency in the quality of vinlyon, sales were brisk due to the shortage of high quality fiber products, economic boom from Korean War related demand, and the curiosity surrounding a synthetic fiber developed entirely domestically. In February 1951, Kuraray began construction on an expansion plan, partially reduced from the original plan. In February 1952, daily production capacity became 8 tons of PVA at the Toyama Plant, 8 tons of vinlyon at the Okayama Plant, and at the Kurashiki Plant, production facilities were expanded to 2 tons each of PVA and vinylon.

27. Hirano, op. cit., 47. 28. Kurashiki Reiyon Kabushiki Kaisha Sōmu-bu [General Affairs Department, Kurashiki Rayon Co., Ltd.], “Kurare monogatari 10: Biniron kōgyō no kakuritsu [Kuraray’s story 10: The establishment of vinylon industry],” Kurare jihō [Kuraray news], Vol.16, No.12, December 1967, 6. 29. Ōhara Sōichirō, “Biniron kōgyōka no omoide: Sono kaihatsu seikō no keiki to keika [Reminiscence of vinylon industrialization: The beginning and process of its developmental success],” Kagaku kōgyō [], Vol.20, No.11, November 1969, 8. In 1952, the price of raw cotton was 308 yen/kg, wool was 1,250 yen/kg, and rayon staple fiber was 283 yen/kg. Hirano: The Development of Domestically Produced Synthetic Fiber Vinylon... 99

However, when Korean War ceasefire negotiations began in July 1951, the overheated world economy entered a correction period, and the textile industry went from boom to recession. Under this condition, product quality of vinlyon became a serious issue. As shown in Table 1-A, in comparison with cotton and rayon staple fiber, vinylon at this time was better in terms of strength, lightness, and chemical tolerance but lacked dyeability and shape retention. And clothing made of vinylon received unfavorable reaction from consumers, such as: 1) colors are dull and often faded; 2) fabric’s look and feel was poor; 3) it lost shape after wearing; 4) it shrunk after washing; and 5) it became slimy after washing. For example, blue serge, which was made for clothing with potential for mass consumption, had the problem of becoming rough and stiff like a wooden board. Blankets shrunk and developed numerous fuzz balls with use.30 Around this time, cotton and wool products returned to market. Consumers demanded products made of natural fibers and thought of chemical fibers as simply a replacement for natural fibers. Thus, synthetic fiber products with all of its quality problems did not sell. At Kuraray, inventory of vinylon products reached 640 million yen at the end of July 1951, and stockpile remained large. As a result, significant reduction in production was implemented.31 Although vinylon performed poorly for clothing, it excelled as industrial material. Because vinylon does not corrode and has five to six times the durability of cotton, compression bag for soy sauce production was first targeted. When sales began in 1951, it quickly swept cotton compression bags out of the market. Later, Kuraray moved into industrial filter cloth for dyes and food seasonings because of vinylon’s excellent chemical tolerance. However, in other areas, vinylon’s success was limited. In fishnets, which became a large market for synthetic fiber, the Fisheries Agency (Suisan-chō) was promoting conversion to synthetic fiber nets. Toray’s nylon was initially unsuccessful with round haul nets but in 1952, it was used as a replacement for silk gillnets in salmon and trout fishing

30. Moriya Kiyoshi, Kani kakuni 9: Niji wa nana iro [This and that 9: Seven colors of the rainbow], Private edition, 1998, 96-97. 31. Keiri-bu [Accounting Department], “Toki no ugoki, shanai no ugoki [Development of the time, development within the company],” Renraku geppō (Kurashiki Reiyon) [Monthly bulletin of Kurashiki Rayon], September 1951, 21. 100 JAPANESE RESEARCH IN BUSINESS HISTORY 2013 │ 30

Table 1: Physical Properties of Vinylon A: Properties of Kuraray’s Vinylon around 1949 Amilan Rayon Vinylon Cotton Wool (Nylon 6) Staple Fiber Dry Strength (g/d) 2.0-6.0 4.5-7.5 2.5-4.0 1.7 1.6-4.0 Dry Elasticity (%) 15-30 14-25 7-10 54 8-30 Dry to Wet Strength Ratio (%) 65-85 85-93 102 63 45-70 Flexion Strength - Strong Very Strong Strong Very Strong Weak Friction Strength - Very Strong Strong Weak Weak Weak Specific Gravity - 1.30 1.14 1.55 1.32 1.52-1.54 Young’s Modulus (kg/mm2) 240-1150 260 800 260 800-1000 Hydroscopic Rate (20°C, 65%) (%) 4.5-5.0 3.0-4.0 8.0 16.0 12.0 Hot Water Tolerance (100°C) (%) 2.5 - - - 3.0-5.0 Flame Tolerance - High High Low High Low Acid Tolerance - High High Low High Low Alkaline Tolerance - High High High Low Little High Dyability - Little High Little High High High High Source: Kohyūga Sadao, “Gōsei sen’i kōgyō no gaikyō ni tsuite [On the overview of synthetic fiber industry],” Renraku geppō (Kurashiki Reiyon) [Monthly bullein of Kurashiki Rayon], January 1950, 37-38. B: Kuraray’s Vinylon Tow around 1954 Old Method New Method (Full Polymerization) (Partial Polymerization) Dry (g/d) 4.5-5.0 6.3-6.8 Strength Wet (g/d) 3.7-4.2 5.2-5.6 Dry (%) 10-13 15-18 Elasticity Wet (%) 10-13 16-18 Dry (g/d) 2.3-2.8 4.2-4.8 Knot Strength Wet (g/d) 2.6-3.2 4.7-5.2 Dry (%) 7-9 11-14 Knot Elasticity Wet (%) 8-11 16-19 Young’s Modulus (kg/mm2) 800-1400 800-1200 Softening Point in Water (°C) 115-120 120-123 Degree of Acetalization (%) 38-40 29-31 Lea Strength (lbs) 240-270 380-420 Wet Knot Strength of Cord (g/d) 0.95-1.00 1.47-1.52 Source: Kabushiki Kaisha Kurare Shashi Hensan-bu (ed.), Kurare 60-nenshi [60 year history of Kuraray], (Unfinished manuscript) (Osaka: Kabushiki Kaisha Kurare, 1987), 164-165. C: Physical Characteristics of Vinylon Staple around 1955 Kuraray Unitika [Kurashiki Rayon] [Dainippon Cotton Spinning] (1.5d, 1-1/8") (1.5d, 1-1/8") Fineness (d) 1.36 1.63 Dry Strength (g/d) 4.59 3.54 Dry to Wet Strength Ratio (%) 67.8 84.5 Mean Range of Strength (%) 22.7 13.2 Elasticity (%) 19.8 25.2 Moisture Ratio (%) 3.79 3.41 Oil and Fat Ratio (%) 0.51 0.67 Coefficient of Friction - 0.457 0.402 Source: Tōyō Bōseki Kabushiki Kaisha Men Sufu Kōmu-bu Bōseki-ka (ed.), Memorandamu Showa 30-nendo [Memorandum Fiscal Year 1955] (Archive of the Company History Editorial Office of Toyobo Co., Ltd. [Tōyōbō Kabushiki Kaisha Shashi Henshū-shitsu].

Note 1: Kuraray’s vinylon staple could be produced without problems in all phases of production and was as easily spun as bright stable fiber. Note 2: Unitika’s vinylon staple did not have any tangle and was difficult to process in a cotton blending machine and difficult to handle in roughing wrap. Note 3: In a test of blended spinning of vinylon and cotton, Kuraray’s vinylon performed better in terms of strength, blend ratio, and yarn uniformity. Hirano: The Development of Domestically Produced Synthetic Fiber Vinylon... 101 in the Northern Seas, and this was the beginning of its popularization. On the other hand, because Kuraray’s vinylon was a spun thread, it was experimentally introduced as replacement for cotton and linen fishnets. However, due to the insufficiency in knot strength when wet, it was limited in use as knotless fishnets and small-scale knotted nets.32 Although Kuraray made advances into industrial materials, quantitative growth and development of synthetic fiber depended heavily on clothing fabric that formed the vast majority of the demand. Thus, Kuraray’s strategy for expanding its use focused on clothing. After the Korean War boom ended and the war-related demand disappeared, vinylon generated hundreds million yen in losses annually, and the losses accumulated and grew to be massive.33 Moreover, because Kuraray invested into industrialization of vinylon at the expense of investment in its rayon business, Kuraray felt the impact of the recession more than other firms. As a result, profits in Kuraray’s rayon business, which had supported its investment in vinylon, declined as well, and as shown in Table 2, poor business outcomes continued until about 1955.

IV. Kuraray’s Champion Policy for Vinylon

To resurrect vinylon from its doldrums required first and foremost technological improvements in PVA and vinylon. At Kuraray, the Toyama Plant adopted a new acetic acid recovery method in April 1953 resulting in reducing the amount of caustic soda and sulfuric acid to 25% of the old method, and in increasing the acetic acid recovery rate to 99.5%. These results contributed to significant reduction in cost. Beginning in August 1954, implementation of partial polymerization method resulted in production of PVA with high degree of uniformity. As shown in Table 1-B, thread quality of vinylon improved significantly, thus making it possible for expanding its use in industrial materials such as fishnets.34

32. Watanabe Ichirō, “Ano koro ano toki: Biniron kaihatsu no kushin [That period, that time: The hard work of developing vinylon],” Kasen geppō [Chemical fiber monthly bulletin], Vol.14, No.10, July 1961, 34-35. 33. Ōhara, “Biniron kōgyōka,” op. cit., 9. 34. Using full polymerization method, which raises the solution polymerization rate of vinyl acetate to almost 100%, resulted in PVA with low uniformity, and this lack of uniformity negatively affected the quality of vinylon threads. Instead, the partial polymerization method performed polymerization of vinyl acetate in a methanol solution 102 JAPANESE RESEARCH IN BUSINESS HISTORY 2013 │ 30 79.20 76.62 78.83 83.29 85.12 86.56 69.51 68.64 74.75 77.54 (%) Share Kuraray’s 6,153 2,722 2,599 3,897 3,668 22,639 16,544 12,852 14,731 10,718 Total (Ton) National 9,123 5,326 1,892 1,784 2,913 2,844 17,931 12,676 10,131 12,269 Total (Ton) ------Vinylon Production 425 256 (Ton) Kuraray Filament 9,123 5,326 1,892 1,784 2,913 2,844 17,506 12,420 10,131 12,269 (Ton) Staple 1960 1959 1958 1957 1956 1955 1951 1952 1953 1954 ], (Unfinished manuscript) (Osaka: Kabushiki Year Calender Calender 40 20 30 70 30 10 60 80 20 20 330 510 130 300 220 300 150 140 150 Internal Reserve** (Million Yen) 90 570 740 360 530 270 250 260 450 460 270 190 140 220 140 160 230 120 140 Net Profits* (Million Yen) [ 60 year history of Kuraray N/A N/A N/A N/A N/A N/A N/A 8.01 8.66 5.68 6.96 4.71 4.40 4.08 4.36 4.27 3.08 2.94 1.88 Vinylon (Billion Yen) N/A N/A N/A N/A N/A N/A N/A 5.66 5.84 5.41 5.78 4.86 4.65 5.62 6.18 6.23 5.24 4.66 4.15 Kurare 60-nenshi Sales Rayon (Billion Yen) 9.57 9.05 9.70 8.32 7.60 4.81 4.28 5.00 6.02 5.13 5.77 4.49 6.03 13.67 14.51 11.09 12.74 10.54 10.51 Total Kuraray’s Business Performance (Billion Yen) 900 950 840 870 830 820 820 820 790 670 650 500 500 510 520 640 640 500 640 Self (Million Yen) Capitalization 750 750 750 750 750 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 1,500 1,500 1,500 1,500 1,500 (Million Yen) Total Capital 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half 1st Half 2nd Half 2nd Half 2nd Half 2nd Half 2nd Half 2nd Half 2nd Half 2nd Half 2nd Half 2nd Half Kaisha Kurare, 1987), 171, 197, 199. profits minus changes in profit reserve Net Profits is current term after tax carry-over. Internal reserve is the sum of profit reserve, optional reserves, and carryover. Kabushiki Kaisha Kurare Shashi Hensan-bu (ed.), 1960 1959 1958 1957 1956 1952 1953 1954 1951 1955 Accounting Period Note *: Note **: Source: Table 2: Kuraray’s Business Performance and Vinylon Production Hirano: The Development of Domestically Produced Synthetic Fiber Vinylon... 103

In July 1953, Kuraray began production of vinylon dyed with undiluted solution of pigment dye. This resulted in significant improvement in colorfastness, a major problem with its use for clothing, and the dyeing cost was reduced drastically as well. In the next month, Kuraray began production of benzalized35 vinylon dyed with undiluted solution. This fiber showed improvements in elasticity, another major problem for its use in clothing, and with improved elasticity, wrinkle resistance improved as well. With these two improved fibers, it became possible to move into the school and work uniform markets that used large amounts of same colored fabric. The quality of PVA directly impacted the quality of vinylon; however, because Kuraray used continuous production from raw materials, it was possible to implement changes instantaneously without relying on chemical companies to make changes. This was a big competitive advantage for Kuraray. In addition, because it was not possible to use spinning machines for natural fibers and rayon staple fibers for vinylon without modification to produce spun threads that took advantage of vinylon’s features, Kuraray considered improvements to spinning machines specifically for vinylon. As a result, Kuraray developed spinning methods such as the Perlohrke method, which emphasized high thread strength, and the exclusive method (senbō), which emphasized the look and feel of the fabric. These developments prepared the basis for expanding into the clothing market. These technical efforts brought substantial improvement in the product quality of vinylon but this by itself did not bring about any increase in sales. The reason for the lack of improvement in sales was that the environment surrounding the industry had changed since the decision to industrialize vinylon was made. It was also related to the fact that discrepancy began to develop between the needs of the consumer in reality and the hope that Kuraray, especially Ōhara and Tomonari, placed on vinylon. As shown in Table 3, the Japanese economy around 1953 carried a large, negative international trade balance. With the trade deficit expected to continue for the foreseeable future, economizing on foreign currency was a major issue. However, with respect to fibers, with the increase in the export of various fibers, balance in international trade from the beginning and stopped the polymerization process at about 50%. 35. Benzalized is to acetalize vinylon with benzaldehyde. 104 JAPANESE RESEARCH IN BUSINESS HISTORY 2013 │ 30 - - - - - 7,223 5,581 78,527 24,322 52,033 15,728 67,761 17,398 27,786 22,556 28,987 21,724 -16,143 119,280 119,280 597,154 675,681 381,217 229,882 164,434 154,684 161,115 -460,778 -127,013 -126,473 1955 2,471,396 2,010,618 ] (Tokyo: - - - - - (Unit: US$1,000) 9,157 9,157 4,285 23,215 48,725 13,640 62,365 14,116 26,320 16,813 25,146 29,284 17,087 -12,802 633,441 532,331 430,027 252,319 147,065 108,573 112,711 -101,110 -770,041 -154,493 -118,048 1954 2,399,377 1,629,336 - - - - - 594 9,100 9,100 8,696 7,716 6,804 15,908 44,322 53,018 18,237 18,520 25,895 75,440 82,815 20,744 -20,150 620,951 373,647 393,853 179,172 169,597 -247,304 -198,773 -173,314 1953 2,409,637 1,274,843 -1,134,794 - - - - - 203 806 7,835 7,835 5,490 1,776 28,408 45,463 12,611 58,074 22,062 21,634 66,117 65,689 19,286 -18,480 613,360 365,243 427,857 180,390 138,665 -248,117 -755,840 -219,059 -142,176 ] (Tokyo: Shōkō Shuppansha, 1956), 1952 2,028,755 1,272,915 - - - - - 6,556 6,556 3,570 1,191 3,714 9,950 32,637 47,893 20,199 68,092 20,675 26,784 84,423 24,737 -23,546 741,801 536,772 490,318 309,805 196,121 101,257 -205,029 -690,179 -147,876 -209,512 1951 2,047,892 1,357,713 [ 100 year history of the Japanese soda industry - - - - - 4,430 4,430 8,641 1,605 1,118 4,357 7,903 4,490 17,563 39,304 22,168 59,339 61,472 49,820 46,407 16,799 -17,593 -52,203 -15,681 -62,018 368,283 350,690 967,210 827,836 275,601 205,835 -139,374 1950 ------515 -998 2,960 3,764 5,201 8,752 7,923 -2,196 15,624 15,733 13,199 25,140 28,932 17,995 18,824 20,262 -19,747 -19,135 208,009 205,813 887,491 413,374 141,652 125,030 -474,117 1949 Nihon sōda kōgyō 100-nenshi [ Expansion of Japanese international trade ------145 886 204 -998 6,418 6,788 5,035 9,866 7,417 6,628 2,239 -7,213 97,805 79,784 20,636 16,718 17,268 37,354 -11,233 -11,492 132,501 138,918 682,613 258,621 -423,992 1948 - - - - - 0 754 446 950 902 -950 2,042 6,408 6,109 2,613 2,305 2,326 3,803 5,227 -4,067 80,151 51,309 70,012 17,653 85,386 33,027 10,783 17,191 131,460 526,130 173,568 -352,562 1947 ------57 198 195 9,303 2,552 1,425 1,425 1,131 1,188 62,487 95,582 56,929 57,124 -43,529 106,016 305,393 103,293 -202,100 -102,135 1946 ------810 1,393 1,393 4,273 8,551 64,899 14,441 25,071 66,540 17,316 14,813 41,553 13,123 47,815 -26,824 -70,625 -12,313 -44,951 426,514 361,615 267,139 182,073 124,771 149,842 1,129,854 1,103,030 Average 1935-1937 Thread Thread Thread Thread Textiles Textiles Textiles Textiles Products Products Products Products Raw Materials Raw Materials Raw Materials Raw Materials Import Import Import Export Export Export Export Import Balance Balance Balance Balance Balance Balance Balance Balance Import Import Import Import Export Export Export Export Nihon Sōda Kōgyōkai, 1982), 225-228, 253-255, 947. Tokubetsu furoku [Special supplement]. Imported cotton raw materials include cotton and waste cotton; exported products include cotton threads and cloth. Exported silk threads include raw and silk threads. Imported wool raw materials include sheep and wool top; imported products include ragg wool and textiles. Imported chemical fiber raw materails include pulp and salt; exported thread includes rayon thread, rayon staple fiber other chemical thread; exported textiles include rayon textiles, staple fiber and other c hemical textiles. All imported salt was assumed to be industrial salt and divided into caustic soda ash based on the production ratio. Amount for chemical fiber was estimated based on the ratio of caustic soda use. Cf. Nihon Sōd a Kōgyōkai (ed.), Tsūshō Sangyō-shō Tsūshō-kyoku Tsūshō Chōsa-ka (ed.), Nihon bōeki no tenkai Silk Total Wool Fiber Linen Other Cotton

Chemical All Products Products Txtile Note 1: Note 2: Note 3: Note 4: Note 5: Source: Table 3: Fiber Trade Balance in Postwar Japan Hirano: The Development of Domestically Produced Synthetic Fiber Vinylon... 105 improved significantly between 1953 and 1954. In April 1953, in an effort to save foreign currency and to improve and expand the supply of clothing and industrial materials, the Ministry of International Trade and Industry (Tsūshō Sangyō-shō) adopted the “Policy to develop synthetic fiber industry (Gōsei sen’i sangyō ikusei taisaku)” for the purpose of generating demand for synthetic fibers and maintaining a mass production system using economies of scale. As for the consumption of fiber, around 1953, with the increase in the production of rayon filament and staple fiber, supply of clothing was adequate. However, there was a return toward natural fibers because of the increase in the production of cotton and wool products, decrease in the price of cotton threads and worsted wool, and the attachment to natural fibers.36 Moreover, consumers were beginning to pay attention to fashion trends once again, and with the increase in the use of western style of dress and in following changes in fashion, they began to demand products with more bright colors and the latest design. Thus, to establish a market for vinylon, a development strategy based on new thinking that better matched a new environment was necessary. Among synthetic fibers, vinylon rated relatively high in moisture absorption and in many ways, had characteristics similar to cotton. Thus, when obtaining natural fiber products became much easier, its role as a replacement was limited. At Kuraray, in order to expand the sales of vinlyon, the Vinylon Sales Department became an independent unit in September 1952. And, in December of the same year, the Cremona 2-3 Group (Kuremona Ni-san-kai) production team was formed, and charged with problem solving on manufacturing products using vinylon and with development of superior products. Abe Moritada, the first manager of the Vinylon Sales Department, believed that sales will not expand unless processing technology appropriate for vinylon developed, and in August 1954, he established the Vinylon Processing Department and worked on establishing a market for vinylon products in cooperation with product manufacturers. Toray had already implemented these strategies ahead of Kuraray. At Kuraray, the old thread and fiber sales only policy was abandoned, and integration downstream to spinning, weaving, knitting, dyeing, finishing, and making final products began. In both nylon and

36. Although rayon staple fiber was the mainstay for clothing during the war and in the postwar recovery period, the pool quality of rayon staple fiber during the war had instilled negative bias, which resulted in the return toward natural fibers. 106 JAPANESE RESEARCH IN BUSINESS HISTORY 2013 │ 30 vinylon, the system of sales only had shifted toward a marketing system that developed and sold products what met the needs of the market. Until about 1953, not only Ōhara but also the members of the Vinylon Sales Department presumed that vinylon was an “essential fiber” and considered it in the same group as cotton and wool. However, by the end of that year, this perspective began to change due to the rapid advance of nylon, increase in criticism of vinylon because of its stagnant sales, and the poor performance of Kuraray’s vinylon business. Although neither Ōhara nor Tomonari had given up on the dream and goal of nurturing vinylon a basic fiber, but in order to compete with nylon and to restore Kuraray’s business performance, they sought to develop vinylon as an additional fiber.37 Around this time, under the overall framework of finding unique, essential value of synthetic fiber itself and raising it, it was necessary to add value by blended spinning and weaving with existing fibers or to develop new products that featured prominently characteristics that were unique to synthetic fibers and not available in existing fibers. Nakamura Hisao, who was responsible for sales promotion from the time of Vinylon Sales Department’s establishment, recalled as follows: Because we had so much trouble with clothing, we decided to select some champion products. So we selected rope and fishnets in materials and school uniforms in clothing.38 With respect to fishnets, with the arrival of high strength vinylon thread, beginning in November 1954, fishnets began to be marketed under the brand name of Cremona Manryō with both stationary shore fishnets and round haul nets. In Septmeber 1955, the Fisheries Agency made the “6 year synthetic fiber fishnet conversion plan (Gōsei sen’i gyomō tenkan rokkanen keikaku).” Partly as a result, vinylon fishnets rapidly eliminated cotton and linen fishnets, and in 1955, it was 18% of the national fishnet sales. Vinylon fishnets became the top seller for fishnets, and even surpassed Toray’s nylon fishnets, which was developed earlier, and became a central pillar supporting Kuraray’s vinylon business.39

37. Ōhara Sōichirō, “Shōwa 32-nen no shinshun shokan [New year’s impressions, 1957],” Renraku geppō (Kurashiki Reiyon) [Monthly bulletin of Kurashiki Rayon], January 1957, 1; Tomonari Tsukumo, “Gōsei sen’i no genjō to shōrai [The present condition and the future of synthetic fiber],”Chamber , No.48, January 1954, 12. 38. Nihon Kasen Shinbun-sha (ed.), Kagōsen sangyō no sengo hishi [Secret postwar history of chemical and synthetic fiber industry] (Tokyo: Nihon Kasen Shinbun-sha, 1992), 84. 39. The synthetic fiber companies developed their fishnet markets by avoiding Hirano: The Development of Domestically Produced Synthetic Fiber Vinylon... 107

As for school uniforms, Kuraray had marketed 100% vinylon school uniforms as early as 1952, but its cost was higher than those of cotton, its colorfastness, look, and feel were inferior; thus, its sales stagnated. In order to improve its look and feel and to reduce its cost, Kuraray blended improved vinylon with rayon staple fiber in a 50-50 mix and spun using the exclusive spinning method, and made serge with a worsted-like weave, branding it KV555. School uniforms made with KV555 began to be sold in September 1953.40 Ono Daizō, who was responsible for vinylon sales, stated, [In clothing, there is] practical clothes and fashion clothes. We focused on practical clothes and selected school uniforms. School uniforms are widely worn, and we only need two colors: black and navy. First, we establish demand in this area, and then expanded to items related to school uniforms, such as sneakers and sweat pants. Our advertising focused on school uniforms, and we built our advertising campaign so that consumers would be imprinted with Kuraray’s vinylon…. We stayed away from following fashion trends and focused on nurturing products that were appropriate for vinlyon with patience.41 As a result, in 1955, school uniform sales reached 700,000 sets, and by 1957, Kuraray became the top company in synthetic fiber school uniform in terms of consumer name recognition and the dealing rate of retailers. Eventually, vinylon’s main markets became fishnets and school uniforms. However, until these markets were established, vinylon did not have a well-defined market, and needed government policies to support and encourage the use of synthetic fibers. Beginning with the “Policy to develop synthetic fiber industry” in 1953, the Cabinet decision to encourage the use of synthetic fiber products in government agencies in July 1955, and subsequent plans of various government agencies to promote the use of synthetic fibers, government actions contributed greatly to vinylon’s survival and were appreciated like rain after a prolonged competition and specializing in different types. For example, Toray’s nylon fishnets focused on gill nets, and Kuraray’s vinylon fishnets on round haul nets and longlines. 40. Vinylon school uniforms were wool-like to the touch; on the other hand, nylon school uniforms were cotton-like and had the problem of developing fuzz balls. Competition between them was fierce. 41. “Ono biniron hanbai buchō kokoroe [Interview with Vinylon Sales Department Head, Mr. Ono],” Kurare jihō [Kuraray news], Vol.9, No.7, July 1960, 7. In part due to Toray’s sales promotion activities, nylon tended to keep up with changes in fashion trends. 108 JAPANESE RESEARCH IN BUSINESS HISTORY 2013 │ 30 drought. These government actions lightened the burden of companies as they developed vinylon through trial and error. In the end, the use of vinylon in clothing was limited to practical clothing such as school uniform, company uniform, work clothes, and underwear, due to the characteristics of vinylon. Most of vinylon was developed as industrial materials, mostly fishnets but also including rubber materials, rope, fertilizer bags, sailcloth, and sheet. The performance of vinylon business began to improve in the second half of 1954, and as shown in Table 2, Kuraray’s performance improved as well. In the establishment of a market for vinylon, it was imperative to increase the consumer’s recognition of a new synthetic fiber product and understanding of its unique features and function as a final product rather than intermediate material, and to actively promote these concepts to the consumer. However, vinlyon was different from other synthetic fibers in that it “had many superior characteristics but unlike other synthetic fibers, it did not have a unique feature…. Vinylon was a mundane fiber and did not attract people’s attention and concern.”42 Ideas like independence of the Japanese economy and the self-sufficiency in fiber resources may have created demand from government’s promotion of these ideas but these ideas alone were not sufficient to stimulate the consumer’s desire to purchase them and did not contribute to increasing demand.

Conclusion From the beginning of the war in China to the postwar recovery period, Japan’s international trade was completely stopped or severely limited. Cotton industry, which depended heavily on imports, reduced production. Silk industry lost much of its raw materials from the reduction of sericulture because of the wartime shift in agricultural production. Thus, production of natural fiber was drastically reduced. People endured shortage of a wide variety of products, and consumption of elective and non-essential items decreased dramatically. Government and companies implemented a national policy of replacing the natural fiber in shortage with synthetic fibers produced with raw materials available domestically.

42. Tomonari Tsukumo, “Biniron sōgyō 5-shūnen ni atatte [On the 5 year anniversary of the founding of vinylon],” Renraku geppō (Kurashiki Reiyon) [Monthly bulletin of Kurashiki Rayon], December 1955, 8. Hirano: The Development of Domestically Produced Synthetic Fiber Vinylon... 109

In the end, this concept of passive substitution, to fulfill the shortage in fiber with synthetic fibers under conditions of general material shortage, prevented synthetic fibers from becoming its own unique material because consumers evaluated synthetic fiber by comparing it to natural fibers. This limited the growth of synthetic fibers. However, as free trade resumed and the textile industry was resurrected with the Korean War, the flow of fiber products in the market increased. As the societal mood became more positive and open and the extreme shortage in all products eased, changes in consumption patterns began to appear. With the spread of western style dress, consumers began to follow fashion trends, and consumption based on choice and luxury increased. A mass consumption society that valued consumption as virtuous began to develop in Japan. In this context, vinylon had difficulty establishing a market for itself, and needed to move toward active substitution through product differentiation and identification of unique characteristics, functions, and appeal. Kuraray implemented concepts from marketing, developed vinlyon as a new material, and created an appropriate market for it. Through industrial policies, the government guided the establishment of the synthetic fiber industry, and supported its development indirectly by creating product demand while companies completed the development process through trial and error. These efforts by the companies and the government prepared the ground from which synthetic fiber could grow. Together with heavy industry products such as passenger vehicles, household appliances and plastics, synthetic fiber products stimulated consumer demand and became the mainstay that supported high economic growth.

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