NITTO DENKO GROUP CSR & Annual Report 2012

CSR & Annual Report 201220Electronics BusinessIn our printed circuit board business, production of hard disc drives (HDDs) was affected by the Thailand floods that occurred in the middle of fiscal 2011 and decreased. In line with the decrease, “NITOFLEX®”, a flexible printed circuit board and “CISFLEX®”, a thin-film metal base board with high resolution circuit, were weak. In the future, hard disc drives are expected to have increasingly high-capacity as memory devices used not only for traditional PCs but also for storing graphics and audio data. Our super-fine wiring technology will contribute to such evolution.In our semiconductor encapsulating materials business, we entered into a basic agreement with Hitachi Chemical Co., Ltd. to assign them that part of the business not having to do with optical semiconductors. In response to the agreement, we will create new core businesses by concentrating management resources on the fields of “Green, Clean and Fine (Environment, Energy and Life Science)”. As to sales of electronic processing materials, the market was weak. Semiconductors are expected to become thinner miniature components and optical semiconductors are also expected to develop. We will pour our efforts into the further streamlining of existing products and the development of new products in growing fields in response to our customers’ needs by utilizing our polymer synthesis and adhesive tape technologies.Tape BusinessTurning now to tapes for the automobile industry, in spite of the impact from the Great East Japan Earthquake at the beginning of the fiscal year and the Thailand floods mid-term, sales remained strong, in line with a recovery of automobile production.As for hybrid and electric vehicles, with their potential for growth, we are making efforts to develop materials and products utilized in weight saving, silencing and muting, and energy conservation, as well as electrical insulating materials.With regards to tapes for the electronics industry, sales of double-coated adhesive tapes used for mobile devices such as smartphones and tablet PCs were strong. Mobile devices have the potential to be trimmed further in weight and thickness and we will contribute to such development with our capabilities.On the other hand, the markets for liquid crystal panels and electronic components were weak because of customers’ adjustments in production. Surface protective products for optical elements, tapes used in the production process and shipment of electronic components were also weak.The Nitto Denko Group has made forays overseas since the 1960s, driving globalization since then. For several years, in addition to existing advanced countries, we have aggressively developed business expansion opportunities in developing countries. In fiscal 2011, we continued to install direct management resources in China. Furthermore, in BusinessActivitiesAcquisition of Turkey’s Top Tape MakerBento Bantçılık ve Temizlik Maddeleri Sanayi Ticaret and its sales subsidiary Bento Pazarlama ve Ticaret became members of the Nitto Denko Group.Yukio Nagira, Nitto Denko Group CEO (left) and Mehmet Ferudun ERAY, President of Bento•Established: 2000•Sales: USD 95 million (Fiscal 2011)•Employees: 250•Description of Business: Manufacture and sale of industrial tapes and hygiene-related products •Established: 2008•Sales: USD 40 million (Fiscal 2011)•Employees: 9•Description of Business: Sale of hygiene-related products