Nitto Denko Group CSR & Annual Report 2011

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CSR & Annual Report 201121Industrial Tape BusinessDue to the increase in demand for flat panel displays and mobile devices such as smartphones, sales of surface protective products for optical elements and sealing materials were strong. As production volume increased on the back of an increase in demand for these mobile devices, sales of adhesive tapes for electronic components remained strong. Sales of devices with touch panels increased and as a result, transparent double-coated adhesive tapes were also strong. With regards to materials produced for the automobile industry, in spite of the impact from the Great East Japan Earthquake at the end of the fiscal year, we were able to respond to an increase in production overseas. A demand for materials utilized in noise reduction and energy conservation as well as electrical insulating materials for electric vehicles with the potential for growth has emerged and we look forward to the new opportunities that presents.Establishment of Our First Overseas Affiliated Company in TurkeyIn Turkey high economic growth centering around automobile, home electrical appliance and metallic plate industries shows promise. The amount of foreign investment in Turkey is increasing yearly. Aiming at pushing ahead with further expansion of our business in developing countries with market potential, we established an overseas subsidiary in Turkey for the first time in fiscal 2010.Nitto Denko’s Adhesive Tape Contributes to Success of Hayabusa Asteroid ProbeThe Hayabusa Asteroid Probe launched from Japan on May 9, 2003 returned safely to Earth on June 13, 2010 after a seven-year space journey.EM Series film capacitors produced by Nichikon Corporation were used on the Hayabusa. Such capacitors, which contributed to the landing on the Itokawa asteroid, required greater reliability and lighter weight than conventional products. Highly rated for its heat resistance and high insulation properties, Nitto Denko’s polyester adhesive tape No.3161-F (now No.3161FR2) was adopted as a material for use on the Hayabusa.In the future, we will continue to develop high-integrity products that contribute to space-related business.Area Niche Top StrategyThe Nitto Denko Group has been developing since the late 1960’s, expanding its business overseas, and driving globalization. In the future, developing countries such as China and India as well as advanced countries such as Europe and the US will very likely be central to economic growth. In order to respond to such a situation, we will pour our efforts into creating not only Global Niche Top products for globally integrated markets but also Area Niche Top products by grasping the needs of each area in developing countries.With Niche Top strategies including both Global Niche and Area Niche, we will develop the second stage of globalization. It is important for us to differentiate ourselves from other companies when we create Niche Top products. We will conduct differentiation from other companies from the perspective of supply-chain management in aspects such as product function, value of supply, intellectual property, standardization and method of supply.Polyester adhesive tape No.3161FR2Company Name: Nitto Denko Turkey Tape •Materials Industry and Trade, LimitedDescription of Business: Finish processing •and sales of tape related products and automotive partsEstablished: April, 2010•Location: Tuzla (east of Istanbul) •Capital: 120,000,000 yen•Number of Employees: 9 (Start-up)•

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