Apr 20, 2006

Daifuku Creates World-Class Manufacturing Facility with
Eleven Factory Buildings to Manufacture Logistics Systems

Apr. 20, 2006
Daifuku Co., Ltd. is pleased to announce that it is relocating part of the production function from its Komaki Works in Komaki, Aichi Prefecture to the Shiga Works in Hino-cho, Gamo-gun, Shiga Prefecture. Two new factory buildings are constructed and existing machine tools are replaced with new tools to bolster productivity and expand the business.

Two factories - one for automated warehouse systems and one for machining - are moving. The central objectives of the relocation are: (1) To begin integrated production system for distribution center line products by combining the function to manufacture automated sorters, etc. in Shiga and an automated warehouse system factory into a manufacturing plant for logistics systems as a means of improving production efficiency; and (2) To reassign the human resources that become available by eliminating the duplication of design and administrative functions to the area of factory automation for general manufacturers and to develop overseas markets and expand operations. This move is expected to boost production of logistics systems, including automated warehouse and automated sorters, to 30% above the fiscal 2005 level by fiscal 2009. The two factory buildings were completed in March 2006 and the relocation of the design and manufacturing functions is already underway. They will be fully operational by the end of October this year. Floor areas are 15,600 sq.m and 18,000 sq.m, respectively.
A 45-meter high-rise research building has also been constructed.

Based on its industrial park scheme of operating a highly productive yet people-friendly factory in a rich natural environment, Daifuku acquired a site of approximately 1.2 million sq.m for the Shiga Works in 1970. Aiming to construct the world's leading facility for logistics solutions, the Company conducted extensive work to prepare the site, enabling it to relocate in stages factories from Komaki and Osaka. With nine factory buildings, Shiga Works have manufactured an array of products for automobile manufacturing lines and for flat-panel display (FPD) and semiconductor fields. The production for distribution center line systems has meanwhile been divided between two locations, namely Komaki and Shiga. The recent surge in demand, especially from the third-party logistics industry, for large-scale compound systems incorporating automated warehouse and automated sorters has made it necessary to establish a production framework that encompasses the entire range of logistics systems. With this latest relocation, machining processes using machine tools, hitherto conducted in Shiga and Komaki as horizontal processes in the company, will be concentrated exclusively at Shiga Works. In addition, the machines will be replaced with the latest models and six five-surface processing machines will be introduced in the future to enable very significant productivity gains.

The new factory buildings

The new factory buildings