Nikko Materials Aims 15 Billion Yen of Recurring Profit to FY2008

Nikko Materials, Japanese electronic material maker and the subsidiary of Nippon Mining Holdings, aims 150 billion yen of its consolidated sales and 15 billion yen of the recurring profit for fiscal 2008 ended March 2009. The firm estimates 100 billion yen of the net sales and 5.5 billion yen of the recurring profit for fiscal 2005. The firm will close its plant for electrolytic copper foil in the U.S.A. at the end of this fiscal year. Then it will increase the production equipment of its main products such as rolled copper foils and sputtering targets for semiconductor and liquid crystal displays, based on the next 3-year management plan for fiscal 2006-2008. The firm aims to achieve its managerial goal through the market promotion of its new product, metallized two-layer polyimide film which is called “MAQINAS,” the material for liquid crystal driver mounting.Nikko Materials has 50% share of the worldwide sputtering target market. The firm plans to reinforce development of target materials for gate electrode, in addition to the output expansion of high-purity copper, tantalum and titanium targets for wiring and barrier materials. The firm aims to maintain top share after fiscal 2006 by the technology development with its customers and the expansion of its output capacity, when the semiconductor market shows growth worldwide.Demand of indium tin oxide (ITO) target is increasing thanks to market expansion of liquid crystal panel, especially larger sized panel. Nikko Materials will strengthen ITO target output capacity when new equipment of panel makers will start operation in autumn 2006. Its current output capacity of ITO target is above 30 tonnes per month. The firm will expand the capacity to 60 tonnes per month during fiscal 2006-2008.Nikko Materials also plans the output expansion of magnetic targets for vertical magnetic recording. The firm considers construction of the new building at Isohara plant in Ibaraki Prefecture in order to increase the equipment for sputtering targets. It also improves the productivity of the plant more than the present.Demand of rolled copper foil is active for flexible printed circuits (FPCs). Nikko Materials’ shipment of rolled copper foil revised its own record in October-December 2005. The demand is currently under contemporary adjustment. However, it is likely to recover in March. The firm will expand the output capacity of rolled copper foil within fiscal 2006 in order to deal with the increasing demand after fiscal 2007.The plant for metallized two-layer polyimide film was already completed and will start the production in April-June with 50,000 square meters per month. Nikko Materials will expand the output capacity to 100,000 square meters per month toward the end of September 2006 and to 400,000 square meters per month toward fiscal 2008. The firm also focuses on the business of high-end surface preparation agent for wafer package as one of next growing products.