NAGASE & CO., LTD. | News Releases | News | Nagase Accelerates Investment

November 22, 2006
Nagase Accelerates Investment Strategies, Upgrades LCD Stripping Agent, Liquid Crystal Glass Processing in Japan and Overseas, and Inaugurates R&D Center for Post-processing of Semi-conductors in Kitakyushu
Nagase & Co., Ltd. is accelerating its investment strategies by upgrading its manufacturing, processing and overseas sales networks. Although the Company announced this spring its three-year investment plan totaling 30 billion yen based on the new Medium-term Management Plan, the "WIT2008," it has already conducted investments of more than 3.0 billion yen in such facilities as the new facility to mass produce phospholipids (accounting for nearly 500 million yen) in the first half of the fiscal year. In the latter half of the fiscal year, investments are expected to surpass the levels of the first half. Plans are underway for Nagase ChemteX Corp. to install facilities to increase production of liquid crystal display (LCD) stripping agents and its recycling facilities; to introduce a nano-particle manufacturing facility; and to invest in the reinforcement of the liquid crystal glass processing facilities in Taiwan. The main pillars of Nagase's new three-year medium-term management plan known as "WIT2008," whose basic philosophy is "to reinforce its corporate structure for sustained growth," consist of investing aggressively in key areas, expanding its business base and restructuring for higher profitability. As a part of this medium-term management plan, an aggressive investment policy of 30.0 billion yen over three years has been announced, which exceeds the previous plan (21.0 billion yen) by nearly 10.0 billion yen. In the previous fiscal year, sales generated from the manufacturing segment made up less than 10% of total consolidated sales, yet simple addition indicates that manufacturing sales accounted for over 20% of profits, and when derivative businesses sales were included, they accounted for more than 30% and thus the Company may be characterized by its strong emphasis on manufacturing investments. In the first half of the fiscal year, Nagase has already established Nagase Electronics Technology Co., Ltd. (71% equity ownership) in Taiwan, which specializes in basic liquid crystal glass processing for cell phones and portable audio equipment. In addition, it has begun construction of the new mass production facility (currently under construction) for phospholipids for the functional food business of the Company's domestic manufacturing base, Nagase ChemteX Corporation. Moreover, investment plans are being successfully executed as operations began in the plastics coloring joint venture with Dainichi Seika Color & Chemical Mfg. Co., Ltd. in Vietnam and an overseas subsidiary was established in Shenzhen, China. Further to the above, investments of more than 3.5 billion yen, which far exceeds the first half of the year, are planned for the latter part of the fiscal year. Plans include the installation of facilities to increase production of LCD stripping agents and its recycling facilities for Nagase ChemteX Corporation (500 million yen), a micro-electronics (for cell phone chips, etc.) manufacturing facility (200 million yen), and a nano-particle manufacturing facility, as well as reinforcement of the liquid crystal glass processing facility in Taiwan and establishment of a new processing base for liquid crystal peripheral products at Nagase International Electronics, Ltd. (Shenzhen) and an overseas subsidiary in India. In terms of R&D investments, Nagase opened its "Semiconductor Applications Development Center" in the Kitakyushu Science and Research Park on November 1. The Center will promote the development of elemental technologies associated with post-processes of semiconductors based on the technology of Pac Tech-Packaging Technologies GmbH, a German producer of semiconductor manufacturing equipment, which the Company acquired in January. (From The Chemical Daily)

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