Union Tool Plans 61% Higher PCB Drill Sales

Union Tool plans to increase sales of printed circuit board drill by 61% to 354 million units in the year to November 2010 from previous year, the firm said at results presentation on Tuesday. The world largest PCB drill maker expects higher demand in China and Taiwan while the sales decreased by 29% in the year to November 2009 due to slump in the first half year.

The firm experienced year-to-year 60-70% lower sales temporary in the year to November 2009. The sales recover recently 70-80% of level in the peak in 2007 when the demand recovers partly due to Chinese government support for appliance purchase in rural areas.

The firm plans capital expenditure at 540 million yen for Shanghai plant, 470 million yen for Dongguan plant and 280 million yen for Taiwan plant to expand the production and to make smaller diameter drill and lower cost drill in the year to November 2010. The firm also plans to expend 1.48 billion yen for Japanese plants.