Jan 31 2005

Hitachi Chemical Co., Ltd. has decided to expand the photosensitive dry film production capacity of Hitachi Chemical (Dongguan) Co., Ltd., with the aim of boosting the manufacture and sale of the films in China in the printed wiring board market. The company will invest approx.1.6 billion yen in building a new plant which will be capable of manufacturing 50 million of the photosensitive dry film per year, as an extension to the existing facility.
Printed wiring board manufacturers, who are the prime users of the photosensitive dry film, are rapidly shifting their production base to China, which has now become the worldfs largest photosensitive dry film market. The companyfs decision to expand the production capacity is an effort to increase its sales in China, where demand for the film is increasing and the market is expected to further grow.
This facility expansion, when completed, will increase our annual photosensitive dry film production capacity in China to 100 million ‡u. We intend to sell the product primarily in China and aim to increase our share in the rapidly-growing Chinese market in fiscal 2006.
Today, Hitachi Chemical holds the worldfs top market share in the photosensitive dry film business for printed wiring board applications, with the film manufacturing facilities in Japan, China, and Malaysia, and also film slitting operations at our own or contract facilities in Taiwan, the Netherlands, Hong Kong, Malaysia, Korea, and China (Shanghai and Dongguan). We intend to aggressively maintain and reinforce our competitive edge, eyeing the possibility of expanding our operations into eastern and northern China, where considerable growth in demand can be expected.
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