March 29, 2007
Regarding the third phase of isotropic graphite production capacity increase
| We would like to announce our decision to increase the production capacity of isotropic graphite, the main product of our fine grain graphite business. We will expand the capacity by 1.4 times to 9,000 tons per annum, increasing our total fine grain graphite production output, inclusive of extruded graphite, to a total of 14,000 tons per annum. Owing to the increasing demand for fine grain graphite products during the recent years, Tokai Carbon has expanded its production capacity twice in the past 3 years. However, we have decided to execute another phase of capacity increase to cope with the growing isotropic graphite demand from existing markets such as semi-conductor, as well as to capitalize on the growth of our strategy markets/business segments such as the alternative energy market represented by PV, the ecology market requiring automobile parts used for eco-friendly hybrid cars, the die/mould industry in need of ultra-high-precision EDM electrode, the emerging markets benchmarked by BRICs countries, and also for satisfying the request from our major customers for a long-term graphite supply contract. To carry out timely shipments to our customers amidst the strong graphite demand from the market, we plan to commence the expansion work from the second quarter of 2007 and delivery shall begin from the fourth quarter of 2008. In addition to graphite material production facility, arrangements have been made to add more capacity to machining and purification facilities. We expect the total investment amount to reach JPY 7 billion. With this expansion we will establish a 14,000 tons per annum production capacity of fine grain graphite, although depending on the market situation we may consider another phase of capacity increase. Our goal is to become one of the world's largest supplier of fine grain graphite and ultimately to win the top share in the world market. |
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Mr. Yuji Serizawa
Operating Officer and General Manager, Sales and Marketing, Fine Carbon Division
TEL: +81-3-3746-5221
FAX: +81-3-3746-5243
