Accelerating Response to Rapid Growth in LCD Demand Fujifilm to Build 2nd and 3rd Factories in Kumamoto

April 3, 2006

Fuji Photo Film Co., Ltd. (President: Shigetaka Komori; hereinafter referred to as "Fujifilm") has decided to build new factories, bringing forward its original schedule. Fujifilm will invest 70 billion yen to build second and third FUJITAC factories for FUJIFILM Kyushu Co., Ltd. (President: Teruo Yamaguchi; Location: Kikuyo-cho, Kikuchi-gun, Kumamoto) in response to the rapidly expanding market for liquid crystal displays (LCD), especially LCD-TVs. Added to the 40 billion yen investment in the FUJIFILM Kyushu's first plant, this will bring Fujifilm's total investment to a total of approximately 110 billion yen.

With the improvement of liquid crystal display performance, the shift to digital television transmission and the addition of popularly priced systems, the global LCD market is growing swiftly as they sweep through Japan, the US and Europe. Display screens are growing larger, and the total area of LCD displays produced annually is expected to be 2.5 times larger in fiscal 2008 than it was in fiscal 2005.

Responding to the surging demand for FUJITAC, a material indispensable to LCDs, Fujifilm decided to construct its second and third FUJITAC plants at Fujifilm Kyushu, a new production base for flat panel display materials.

Fujifilm has positioned production of materials for LCDs and other flat panel displays as a core business and will sustain its investments in R&D and enhanced production capacity. Fujifilm contributes to the flat-panel display market with five unique and strong products: FUJITAC(*1), which is indispensable to polarizing films for LCD panels; WV Film(*2), which widens viewing angles; CV Film(*3), which has strong antireflective effects on panel screens; Transer(*4), a film used to produce color filters; and Color Mosaic(*5). In addition to these five products, Fujifilm is developing and marketing new products that utilize its own proprietary technology for LCD televisions, a market expected to grow rapidly in the future. Fujifilm intends to continue expansion in this field as part of its overall growth strategy.

(*1) FUJITAC: Made from cellulose triacetate (TAC) material, FUJITAC contains superior optical qualities and is used as a protective film for the polarizing films used in LCDs.
(*2) WV Film: A film that greatly widens the viewing angles of LCD panels. It is a product unique to Fujifilm.
(*3) CV Film: An antireflective film for the surfaces of LCD panels. Its characteristics include low reflectivity, high precision and high resistance to dust and dirt.
(*4) Transer: A film used to produce color filters for LCDs. A color LCD panel is created by transferring red, green, blue and black color layers from this film to the glass board using the dry lamination technique. It is optimal for use in manufacturing large LCD panels.
(*5) Color Mosaic: Color resists for LCD color filters; suitable for every type of LCD such as transparent, trans-flective and reflective types. . The wide range of functional materials includes primary colors, complementary colors and photo spacers to control LC cell gaps.

1.Construction site: FUJIFILM Kyushu Co., Ltd. (Kikuyo-cho, Kikuchi-gun, Kumamoto)

2.Investment: approx. 70 billion yen


Plant Fujifilm Kyushu Factory 2 Fujifilm Kyushu Factory 3
Lines 2 2
Ground-breaking 2nd phase construction
April 2006
3rd phase construction
December 2006
Start of operations August 2007 April 2008
Total floor area Approx. 38,000 m2 Approx. 38,000 m2

<FUJITAC Supply Structure accompanying new factory construction of Fujifilm Kyushu (including high-performance FUJITAC)>
FUJITAC conversion supply capacity (yearly) Total capacity
Fujifilm Kyushu Factory 1 Fujifilm Kyushu Factory 2 Fujifilm Kyushu Factory 3
As of March 2006 Existing plant (*6)
280 million m2
October 2006(2 months ahead of schedule) Line 1
50 million m2
330 million m2
February 2007(2 months ahead of schedule) Line 2
50 million m2
380 million m2
August 2007 Line 3
50 million m2
430 million m2
December 2007 Line 4
50 million m2
480 million m2
April 2008 Line 5
50 million m2
530 million m2
August 2008 Line 6
50 million m2
580 million m2

(*6) Existing plant consists of Ashigara Site Fujifilm Kanagawa Factory and Fujifilm Opto Materials Co., Ltd. Factories 1-4.

Media Contact:
Fuji Photo Film Co., Ltd.
Corporate Communications Division, Public Relations Division
Tel: 81-3-3406-2490
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