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[Company Information]Nitto Denko Plans New Plant for Specialty Adhesive Tapes
Production Marked by Cleaner Environment, Higher Precision, and Larger Tape Widths
7.3.2007
Japan’s leading diversified materials company Nitto Denko Corporation (Nitto Denko) has decided to newly construct at its Shiga Plant in Kusatsu, Japan, a new production unit for specialty adhesive tapes, the company said today. The new plant will manufacture adhesive tapes for surface protection of optical films and tapes with cleanliness and precision specifications meeting the electronics industry requirements.
The decision to build a new plant this time in addition to the existing facility at Toyohashi, central Japan, comes in response to the expanding demand for high-quality adhesive tapes for optical films used in flat panel displays, electronic parts and cell phones, for which further increases in demand are anticipated, the company says.
Background of the Project
As a company engaged in the manufacture and sale of adhesive tapes for optical films used in LCDs and PDPs as well as electronic parts, Nitto Denko Group has a top-level market share in the world in this field.
In particular, the demand for LCD-TVs continues to expand to a projected 100 million units by 2008. Moreover, widening of the flat panel screen size is accelerating, with the mainstream TV screen size being expected to reach the 40-inch level from the current 30 inch-level, and even higher, to the 50 inch-level.
Given such a backdrop prompting adhesive tapes used for surface protection of optical films mainly going into LCDs to likewise enjoy further demand increase, Nitto Denko has decided to build the new plant in order to ensure a stable supply of materials to customers and to accommodate screen size increases. Moreover, while such adhesive tapes are already in production at the company’s Toyohashi Plant, the choice of Shiga Plant as the construction site this time was made from the viewpoint of hedging the risk of earthquake damage, for example.
Special Features of the New Plant
Construction of the new plant in the first stage of the project designed to meet the significantly expanding demand in the field of surface protection of optical films in large-screen TVs, will boost Nitto Denko’s existing production capacity of such adhesive tapes by 1.5 times. Moreover, the company intends to promote manufacturing enhancement measures consisting of not only upgrading the cleanliness and precision level to meet tighter requirements in other electronics fields, but also making possible the production of wider tapes.
Outline of the New Plant Project
| 1. | Nature of the Investment: | New plant construction and installation of precision coating equipment, etc. |
| 2. | Construction Site: | Shiga Plant of Nitto Denko Corp. at Kusatsu, Japan |
| 3. | Investment Amount: | ca. ¥8 billion (Stage I) |
| 4. | Total Floor Space: | ca. 18,000 sq.m. (Stage I), for a steel- reinforced 6-story building |
| 5. | Products: | Adhesive tapes for optical films and other applications |
| 6. | Production Value: | ¥8 billion (Initial year of operation) |
| 7. | Total employee Headcount: | ca. 50 (as of 1st H/FY 2009) |
| 8. | Start of Construction: | June 2007 |
| 9. | On-stream Schedule: | March 2008 |
Rendering of Completed Plant
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