Dec 21, 2010

Daifuku Production Management System Upgraded in China

December 21, 2010

Enhancing China's production framework to meet increased demand for material handling systems

Daifuku Co., Ltd. today announced that, in collaboration with Fujitsu Limited ("Fujitsu"), it has upgraded the production management system at its affiliate Daifuku (China) Manufacturing Co., Ltd. ("Daifuku China Manufacturing"), the Shanghai-based Chinese production center. The new system started operations in November 2010, to respond to increased demand for material handling systems in China.

The new system will enable Daifuku to accelerate initiatives for improving its productivity through the standardization of production processes, as well as shortening turnaround times, reducing costs, and flexibly responding to changes in product requirements. In addition, by connecting with other systems, including its accounting, sales management, and inventory management systems, the upgraded system will strengthen the management of the Company's revenue and project progress.

Daifuku prides itself on being a global corporation with business outside of Japan accounting for more than half of its sales. The Company offers a comprehensive line of services, from the development of material handling systems for building internal logistics systems involved in production and distribution, to the sales, manufacturing, and support of these systems. Daifuku has positioned China as the largest and most important market for its business outside of Japan. In response to increased demand for its material handling systems in China, Daifuku has been strengthening its business under a new organizational structure with Daifuku (China) Co., Ltd. ("Daifuku China"), a new affiliate company established in April 2010, at its core. Daifuku had revised the production processes at Daifuku China Manufacturing, and had been considering upgrading its system platform in order to speed up the standardization of and productivity improvements for these processes.

In January 2010, Daifuku updated the accounting, sales management, and inventory management systems at Daifuku China migrating over to an SAP platform. Through the latest upgrade of the production management system at Daifuku China Manufacturing to the SAP platform, Daifuku aims to enhance its system governance. This will allow the Company to standardize the different production processes for each of its products, bring visibility to its production operations, and further improve productivity. At the same time, by managing the progress of individual projects and revenue in real-time, Daifuku will strengthen its project management framework for adhering to deadlines and budget constraints.

The new system will enable Daifuku China Manufacturing to thoroughly manage inventory, projects, and delivery dates, while at the same time being able to deliver higher-quality products with a strong commitment to quality, cost, and delivery through the visualization of its work processes.

With sales and production centers in 20 countries around the world, Daifuku is building a globally-optimized production and procurement system. Through seamless collaboration among its affiliates across the globe, the Company develops a global production framework that fulfills all requirements in terms of quality, cost, delivery, and the environment. In the future, Daifuku will accelerate initiatives for optimizing the production systems of its global affiliates and to further improve productivity.

On August 1, 2010, Fujitsu established a new business unit to provide strong and seamless support between Japan-based companies and their Asian subsidiaries in the manufacturing, retailing, and distribution industries, for Japanese customers who are launching or expanding business in Asia. The new Asia business unit will provide solutions as well as infrastructure services. For Daifuku's new system, the new business unit and Fujitsu (China) Holdings Co., Ltd.—which has SAP expertise as well as system development experience in China—in collaboration with Daifuku China Manufacturing and Daifuku headquarters, were able to quickly develop a system that complies with Chinese business practices and regulations, and for which governance can be handled by Daifuku's headquarters in Japan. Fujitsu will continue to support Daifuku in expanding its business in China, while at the same time, as a business partner, proposing ideas from a global perspective that generate added value for Daifuku’s business.

About Fujitsu
Fujitsu is a leading provider of ICT-based business solutions for the global marketplace. With approximately 170,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.6 trillion yen (US$50 billion) for the fiscal year ended March 31, 2010. For more information, please see Fujitsu website:

www.fujitsu.com

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