NITTO DENKO GROUP CSR & Annual Report 2012

CSR & Annual Report 201221order to accelerate the expansion of our business not only in European markets including Turkey and other developing countries in Eastern Europe, but also their neighbors in the Middle East and North Africa, we took over Bento, Turkey’s leading manufacturer of industrial tapes. To pursue our growth strategy in developing countries, we are implementing our “Area Niche Top” strategy. We try to differentiate ourselves in not only the quality, price and function of our products, but also in intellectual property, standardization and supply chain management, in areas such as the method of supply, aiming to expand our business.Medical BusinessIn our medical business in fiscal 2011, a base in Osaki City, Miyagi Prefecture producing transdermal drug delivery patches for the domestic market was affected by the Great East Japan Earthquake. However, with concerted recovery efforts we were able to restart production in April, and by responding to a rebound in demand after the quake, sales were consequently strong.We contributed our efforts to the business expansion of the US company, Nitto Denko Avecia, Inc. which is a leader in the manufacture of oligonucleotide medicine and which joined the Nitto Denko Group in 2010.On the other hand, one of our companies manufacturing transdermal drug delivery patches in the U.S., which had shut down production voluntarily to concentrate on activities to improve quality control, partially restarted production. The effects of the shutdown were profound. Consequently, sales were weak on the whole. The company was ultimately transferred to Apotex Inc. of Canada at the end of March 2012.Notwithstanding the sluggish sales, our medical business is closely linked to “Fine” (life science) which is one of our three key values: “Green, Clean and Fine”. In order to achieve further growth in the future, we are actively developing this area of our business.In the years ahead, we will continue to expand our medical business by such means as marketing new products in our range of transdermal drug delivery patches, developing next-generation transdermal drug delivery patches and enhancing the field of nucleic acid medicine.Nitto Denko (China) Investment Co., Ltd. participated in “The 12th Western China International Fair” held in Chengdu, China from October 18 to 22, 2011, for the first time. This fair is one of the most popular of its kind in China, with a total of more than 600,000 visitors annually and attracts attention from right around the world, including that of the media.Nitto Denko (China) Investment Co., Ltd. introduced the way in which the Nitto Denko Group contributes to society with our varied technologies and products under our three tenets of “Green (environment), Clean (energy) and Fine (life science)” and had many visitors experience the “Nitto Denko World”.The content of the exhibition was appreciated and received a “Best in Show Award” from the host.Exhibition galleryTransdermal drug delivery patches for asthma sold in the Chinese marketFirst Participation in “The 12th Western China International Fair”