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2003 News Release
October 21 
October 21, 2003
Establishment of Lead Frame Processing Base in Singapore
Tokyo, Japan, October 21, 2003—Hitachi Metals, Ltd. today announced that the company has established the ASEAN Slit Center (ASC) in Singapore and started production there as the slit processing1 base for lead frame materials2.
1. Background and Overview
Hitachi Metals’ 42-Ni lead frame materials3 have until now been slit processed in Japan (Yasugi Works, Yasugi City, Shimane) and exported. However, these products are strongly influenced by the highly volatile demand trends for ICs4 , and there have been past cases in which our production capacity was inadequate to cope with sudden changes in demand, rendering us unable to fill customers’ orders in a timely fashion. Taking a lesson from this experience, we decided to set up the ASC as the lead frame material processing base in close proximity to our customers in the ASEAN5 region to drastically shorten lead times.Carrying out production at the ASC enables us to conduct slit processing of widths specified by our customers in the ASEAN region, and delivery times have been cut by to two weeks. In addition, we are able to produce more diverse products in smaller quantities6.
At the ASC, it is possible to supply the same high-quality products as those manufactured in Japan, and we will work to use these new production facilities to help boost sales in the region.
2. Current Schedule
We started producing samples in October 2003 and plan to commence mass production of certain products in November. We plan to launch full-scale production in January 2004.3. Marketing Plans
Initially, the ASC will only supply customers in the ASEAN region, but, in the future, we plan to expand the marketing area beyond the ASEAN region.| Expected net sales: | Year 2003 ¥2.5 billion per annum | |
| Year 2005 ¥4.0 billion per annum |
4. ASC Overview
| Location | : | Jurong Industrial Estate of Singapore7 (in Hitachi Metals Singapore Pte. Ltd.) |
| Facilities | : | High-precision slitting machine, 1 unit |
| Structure | : | Manufacturing, quality assurance, shipping operations, business |
Inquiries
| Press Inquiries: | Akio Minami Corporate Communications Office, Hitachi Metals, Ltd. TEL: +81-3-5765-4079 FAX: +81-3-5765-8312 |
| Product Inquiries: | Tetsuo Hayashi Specialty Steel Company, Hitachi Metals, Ltd. TEL: +81-3-5765-4382 FAX: +81-3-5765-8317 |
Reference
Hitachi Metals Singapore Pte.Ltd. Overview| Type of Business: | Marketing of Hitachi Metals products in the ASEAN Region |
| Address: | 12 Gal Avenue, Singapore 629656 |
| Representative: | Masaomi Otsuka |
| Established: | February 1979 |
| Stated Capital: | Approximately ¥580 million |
| Number of Employees: | Approximately 50 |
| Net Sales: | Approximately ¥8.6 billion (fiscal 2002) |
