Fujikura Diversifies FPC Production to Vietnam and Thai High-Altitude Site

Fujikura announced on Monday the firm establishes new factories for flexible printed circuits (FPCs) in Vietnam and on the high-altitude site of Thailand. Vietnamese factory has already started commercial production in January. Fujikura has held no.2 shares in global FPC market but Fujikura Group’s FPC factories were seriously damaged by flood in Thailand. Now the firm diversifies productive sites from previous integration in Thailand.

Vietnamese FPC factory was established inside Long Binh Techno Park, Dong Nai Province in December 2011 with 1.1 billion yen of capital fund wholly invested by Fujikura. About 350 employees are presently working in the factory.

Fujikura didn’t disclosure details of Thai new FPC factory at a press conference in Tokyo on Monday while Mr. Yoichi Nagahama, president of Fujikura, explained Fujikura won’t recover output capacity of Ayutthaya FPC plant fully and the new plant will cover the volume instead. Ayutthaya plant is Fujikura Group’s core base to manufacture FPC but the plant has been suspended by the flood.

As for damaged and suspended FPC plants in Thailand, the firm explained Navanakorn plant will restart commercial operation in March 2012 where upper stream processes for single-side FPC are mainly integrated. Ayutthaya plant is expected to recommence commercial production partially in May 2012 where upper steam processes for double-side and multi-layer FPC are integrated.

Fujikura tries to recover more than 70% of pre-flood FPC output capacity in September 2012 and projects full recovery at the end of March 2013.

Fujikura also announced on Monday the firm posts total 9 billion yen of consolidated extraordinary loss related to Thai flood on the full-year consolidated financial accounts for fiscal 2011 ending in March 2012.

The firm now forecasts its full-year consolidated net sales would decrease by 4.2% to 50 billion yen in fiscal 2011 from fiscal 2010. The operating profit is forecasted to decrease by 40.8% to 10 billion yen and the recurring profit to drop by 54.3% to 7.5 billion yen. The firm forecasts net loss at 9 billion yen for fiscal 2011 against net profit at 9.4 billion yen in fiscal 2010.