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[Company Information]Aiming to Contribute to Solving Worldwide Water Shortage by Meeting Expanding Membrane Demand
Nitto Denko Boosting RO Membrane Capacity in Japan
2008.05.09
Japan's leading diversified materials manufacturer Nitto Denko Corporation (Nitto Denko) will newly construct at its Shiga Plant, western Japan, an additional unit for producing its proprietary reverse osmosis (RO) membranes used for seawater desalination and wastewater recycling, the company said today. RO membranes are expected to face increasing demand from now on as a product needed to counter water shortage which is becoming a serious problem around the world.
Nitto Denko Group (Group) consisting of Nitto Denko and its global group of subsidiaries including water technology company Hydranautics in Oceanside, California, U.S. A., is currently operating a tri-polar production setup in the world, namely, at Shiga, Japan, Oceanside, U.S.A. and Shanghai, China. Fully leveraging its global sales & marketing as well as support network, the Group now holds a top-ranking share in the world RO membrane market, and plans to actively expand its RO business by meeting the further increasing demand going forward.
Background
With the RO membrane market projected to almost double from today in the next five years, the Group is planning to invest some ¥6 billion to construct a new RO membrane production unit in order to satisfy expanding demand. The plan calls for boosting the Group's RO membrane production capacity by 1.6 times on a consolidated basis in the initial phase, and to thereafter ramp up production in stages while responding flexibly to meet the market needs. The Group expects to attain by Fiscal Year 2015 a consolidated sales revenue of ¥50 billion per year – roughly 2.5 times the current scale – including the peripheral water treatment businesses.
New Unit's Special Features
Taking advantage of the Group's cutting-edge coating and automation technologies, the new unit will be a production line capable of manufacturing products meeting still higher performance requirements and staying abreast of expanding demand.
Outline of New Unit's Construction
1) Investment Objective: Construction of the new unit, including coating line
2) Construction Site: Nitto Denko's Shiga Plant, Japan
3) Investment Amount: ca. ¥6 billion (Phase 1)
4) Site Area: ca. 5,400 sq. m.
5) Total Floor Area: ca. 15,000 sq.m. (4-storied steel-reinforced building)
6) Product: RO membrane
7) Construction Start: June 2008
8) Completion: March 2009
Rendering of New Unit
Kazuhito Kouno
Corporate Communications
Corporate Communications & Branding Department
Corporate Sector
Nitto Denko Corporation
Tel: +81-6-6452-2215
Fax: +81-6-6452-3316
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