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Press Release


February 15, 2010

Completion of a New Building at the Kuwabata Plant for Manufacturing Precision Processing Equipment and Tools

DISCO Corporation (Headquarters: Ota-ku, Tokyo; President: Kazuma Sekiya) has announced that the construction of a new building was completed on Friday, January 29, 2010 at its Kuwabata Plant in Kure City, Hiroshima Prefecture that manufactures precision equipment and tools.


Exterior

Interior
Objectives of the New Building Construction

<Improvement of BCM* Readiness>

Since the new building adopts the earthquake-absorbing structure, even when a large earthquake will hit this area, damage of the plant can be minimized, so as to realize the environment that products can be supplied in a stable manner at a time of disaster.

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Not only does the flooring of each floor have a different color but also the sections are indicated by a combination of a letter and number on each pillar. This visual identification makes it possible to recognize the location instantly, so that people can escape immediately during a time which requires urgent evacuation.

* BCM: Business Continuity Management

<Investment in Future Demand Expansion>

Completion of this building secures future production space.

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Addition of the new building doubles the current production capacity of DISCO.

<Improvement of Efficiency by Consolidating the Manufacturing Sites>

Completion of the building enables relocating the parts production facilities, which are currently at the Nagatani Plant in Kure City, to Kuwabata. This puts all the production capabilities together at Kurabata, thereby improving logistical efficiency.

Operation Start

DISCO will start operations at this new building as sections become available with completion of the relocation of the facilities by May 2010.

Supplemental Information

Eight stories above ground

Total floor area

:

Approximately 62,700 m2

Total amount invested

:

About 11 billion yen

Business Environment surrounding DISCO

The economic condition of the semiconductor industry was drastically worsened from the fall 2008. All the companies in this segment, including the manufacture of semiconductor manufacturing equipment, struggled to develop their business. Under these circumstances, DISCO regained profitability in the second quarter of 2009. Then, in the third quarter, its sales achieved a 62.0% increase over a year ago and were up by 30.4% from the previous quarter.
This is not only because the sales of the consumable precision processing tools recovered to the level before the recession but also both laser saws for LED and blade dicers for semiconductor packages performed well. Operating ratio at the plants is also showing substantial recovery.

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