Construction of a New Building at the Kure Plant
DISCO Corporation (Head office; Ota-ku, Tokyo; President: Kazuma Sekiya) has decided to construct a new building by investing a total of 2.5 billion yen at the Kure Plant, Hiroshima prefecture, where precision processing tools are manufactured. The investment will be financed by funds procured through the convertible bond issued in November 2009 and also by its own funds.
1. Reason for the construction of the new building
The Kure Plant, the main plant for our precision processing tools, is currently producing at a high utilization rate supported by the recovery of the semiconductor market, although it experienced a short drop in production last year influenced by the global recession. Demand for our precision processing tools is expected to expand in accordance with an increase in semiconductor production quantities in the midterm. In order to respond to this demand, we decided to demolish old facilities and buildings at the Kure Plant and to construct a new building.
This will improve BCM* readiness and stabilize the supply capacity to our customers.
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* BCM: Business Continuity Management
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2. Outline of the plant and construction plan
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Name
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Kure Plant C building
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Building Structure
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Earthquake-absorbing structure
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Total floor area
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Approximately 16,400m² (Six stories above ground)
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Total amount invested
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About 2.5 billion yen
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3. Schedule
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End of November 2010
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Start of construction of the new building
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End of November 2011
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Scheduled completion
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4. Impacts on earnings forecast
No impact on current earnings forecast
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