30% increase in supply capacity and 200% increase in coating capacity by the end of the next fiscal period

「At WSK and WCP, the companies are working to add new coating lines and improve the manufacturing processes on existing lines.」

「W-SCOPE KOREA CO., LTD. (WSK) continued to work on improving production efficiency. At W-SCOPE CHUNGJU PLANT CO., LTD. (WCP), production volumes on the cumulative No. 14 and No. 15 lines, which began mass-production operations in the fourth-quarter consolidated accounting period of the previous fiscal year, stabilized, resulting in a substantial increase in film-forming line output.」

「At W-SCOPE CHUNGJU PLANT CO., LTD. (WCP), production volume on the cumulative Lines 14 and 15, which began mass-production operations in the fourth quarter of the previous year, has stabilized, resulting in a substantial increase in coating-line production. Production on the coating lines also increased, as two lines were added year on year.」

「From the fourth quarter of the current consolidated fiscal year, two newly added coating lines and two newly added coating lines began mass-production operations at WCP, substantially increasing production of coated separators.」

「At W-SCOPE CHUNGJU PLANT CO., LTD. (WCP), the 4 existing production lines continued to operate smoothly in mass production, while preparations for mass-production shipments from 2 new production lines were also completed.」

「Construction of the new mass-production lines, WCP Coating Lines 5 and 6, is also progressing, and trial operation is expected to begin from the second quarter of the current consolidated fiscal year.」

「As a result of these factors, revenue for the fiscal year ending December 2021 is expected to be ¥28,000 million, up 51.5% year on year. Growth is expected to be sluggish in the first quarter, when major customers' Chinese plants reduce operating days during the Lunar New Year period, but demand for automotive applications and high-end consumer products, including ESS applications, is expected to grow from the second quarter onward. To achieve this revenue target, the company is proceeding with the expansion of large, high-speed coating equipment that it has been working on, and plans to bring two new coating lines at WCP into mass production in the second half. In addition, the company plans to add two coating lines at WSK and four at WCP, two of which have not yet started construction. These lines will feature approximately 1.8 times the production capacity of existing equipment, based on the company's proprietary manufacturing technology.」

「During the suspension of these production lines, the company carried out inspections, maintenance and work to improve yield, in preparation for expanding supply volume in the second half of the fiscal year.」

「The cumulative Lines 12 and 13, which began operating in the second half of last year, steadily increased mass-production shipments of separators for automotive applications and made a significant contribution to the increase in revenue for the period.」

「In addition, expansion of the coating lines is progressing smoothly, significantly increasing supply capacity for automotive coating products.」

「Line 12, whose installation was completed at the end of June this year, has already received customer line approval and is ready for mass production. Similar preparations for Line 13 are scheduled to be completed by the end of this year. As demand for coating products for automotive applications continues to grow, WSK has six coating lines operating steadily, while WCP has completed the installation of four coating lines.」

「In addition, installation of the cumulative 12th and 13th lines is nearly complete, and trial operations will begin in the second half.」

「At WCP, the Company is working to install Film-forming Lines 12 and 13, which are scheduled for completion in the second half of this year.」

「At the beginning of 2019, 11 film-forming lines for mass production were operating. In the second half of the year, W-SCOPE CHUNGJU PLANT CO., LTD. is expected to complete and transition to mass production with its large-scale film-forming Lines 12 and 13. In addition, as demand for coated separators increases, a cumulative total of 10 coating lines is scheduled to begin operating at W-SCOPE KOREA CO., LTD.'s 3rd plant.」

「In preparation for growing demand from 2020 onward, the Company is continuing to systematically expand its separator film-forming and coating lines.」

「Four film-forming lines and 2 coating lines began operating during the year, increasing fixed costs such as depreciation. In preparation for the outlook for full-scale mass-production supply to our customers' EV manufacturers from 2020 onward, we are continuing to systematically expand separator film-forming lines and coating lines.」

「At WCP, facilities for Lines 10 and 11 had been completed, and preparations were under way to begin mass production.」

「The following major facilities planned for construction as of the end of the previous consolidated fiscal year have been completed: W-SCOPE KOREA CO.,LTD., headquarters, Lines 8 and 9; investment amount: ¥7,363 million; completion date: December 2017; increase in capacity after completion: approximately 60% increase in production volume」

「Production Line 8 began operating in the third quarter as planned. The Company expects to bring a total of 4 large-scale lines into operation by the first half of next year, with production capacity expected to exceed twice the level of 2016 in 2018.」

「With completion and the transition to mass production of Lines 8 and 9 during the third quarter of the next fiscal year, supply capacity is expected to increase by approximately 30% from the end of the current fiscal year by the end of the next fiscal year. Completion of the coating line and its transition to mass production during the second quarter of the next fiscal year are expected to increase coating capacity by approximately 200% from the end of the current fiscal year.」