September 30, 2005

Reinforcement of production capacity through the establishment of a new company in Ishikawa Prefecture for the production of cold cathode fluorescent lamps (CCFLs) for large-screen LCD TV

In response to increased demand centered in large-screen LCD TV long length CCFLs, Sanken Electric Co., Ltd., established the new company Sanken Optoproducts Co., Ltd., today (September 30, 2005) for the production of CCFLs for LCD backlight in Shika-machi, Hakui-gun, Ishikawa Prefecture (at the site of the Horimatsu Plant of group unit Ishikawa Sanken Co., Ltd.) (capital: ¥90 million; 100% investment by Sanken Electric Co., Ltd.).

The new company has started construction of a new partial 2-story steel-frame plant at the site (total floor space: 8,900m2). Production is set to commence in May 2006 with a structure for monthly production of 10 million units in place by December 2006. A total capital investment of ¥9.6 billion is planned for the activation of the new facility.

This will be the Sanken Group's fourth CCFL production base, boosting total CCFL production capacity to 27 million units per month.

< Purpose for the establishment of the new plant >

1. It appears certain that the market for LCD TVs, which are demonstrating an ongoing surge in demand, will continue to expand further. The need has arisen to expand supply capacity of long length CCFLs due in particular to the increase in 40-inch and larger LCD panels.
2. CCFLs are currently being produced at three locations, Fukushima Sanken (Nihonmatsu City, Fukushima Prefecture), Ishikawa Sanken Uchiura Plant (Housu-gun, Ishikawa Prefecture) and Korea Sanken (Masan, Korea) with monthly production capacity of 15 million units (17 million units as of February 2006). Due to limitations in promoting a further expansion of these plants, it was decided to increase supply capacity through the construction of the new plant.
3. Ishikawa Sanken is the Sanken Group's major producer of semiconductors. In order to operate the state-of-the-art CCFL plant as an independent unit, it was judged to be desirable to implement management through a separate organization apart from semiconductor production and product capacity is therefore being strengthened through the establishment of the new company.

 

Profile of the New Company and New Plant Construction
· Profile of the new company
  (1) Company name: Sanken Optoproducts Co., Ltd.
  (2) Address: Ha-5-4 Nashitani-Koyama, Shika-machi, Hakui-gun, Ishikawa Prefecture
  (3) Capital: ¥90 million (100% investment by Sanken Electric Co., Ltd.)
  (4) Establishment: September 30, 2005
  (5) Officers:
Chairman:   Yuji Morita
(President: Sanken Electric Co., Ltd.)
President:   Takashi Wada
(General Manager, Sanken Electric CCFL Business Division)
Director:   Teruo Esumi
(Senior Vice President, Sanken Electric Co., Ltd.)
Director:   Keizo Michitsuji
(President, Ishikawa Sanken)
Director
& plant manager:
  Shuji Abe
(Manager, Fukushima Sanken Production Department)
Statutory auditor:   Isao Tokiwa
  (6) Employees: 240 (anticipated by December 2006)
  (7) Products handled: Cold cathode fluorescent lamps (CCFLs) for LCD backlight
  (8) Site and building: Site area: Approx. 24,000m2
Building floor space: Approx. 8,900m2
  (9) Sales: ¥12 billion (anticipated by term ending March 2007)
 
· Profile of the new plant
  (1) Address: Ha-5-4 Nashitani-Koyama, Shika-machi, Hakui-gun, Ishikawa Prefecture
  (2) Description
of the building:
Partial 2-story steel frame
Total floor space: Approx. 8,900 m2
  (3) Construction term: Commencement:October 2005
Completion:April 2006
  (4) Construction company: Supervision and control: NTT Facilities
Design and construction: Kajima Corporation
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