Aggressive investment in coating equipment and other areas to meet demand for high-capacity batteries

「The principal capital expenditures made during the consolidated fiscal year were ¥1,135 million for the acquisition of production equipment and other tangible fixed assets to expand a subsidiary's production lines, with the aim of increasing production capacity.」

「The principal capital expenditures made during the consolidated fiscal year were ¥28,157 million for the acquisition of production equipment and other assets to expand a subsidiary's production lines, with the aim of increasing production capacity.」

「The main capital investment during the current consolidated fiscal year was ¥50,551 million for the acquisition of production equipment and other assets to expand subsidiary production lines for the purpose of increasing production capacity.」

「At the coating lines, the Company is working to add new lines and improve existing manufacturing processes.」

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

「At WSK and WCP, the companies are working to add new coating lines and improve the manufacturing processes on existing lines, resulting in a substantial improvement in productivity.」

「Production volumes have also increased on the coating lines, as 2 lines were added year on year.」

「Both companies continue working to improve productivity in order to accelerate their response to increased production of coated products for which demand is growing.」

「At W-SCOPE CHUNGJU PLANT CO., LTD. (WCP), 2 new film-forming lines and 2 coating lines began mass-production operations during the fourth-quarter consolidated accounting period, 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.」

「Regarding manufacturing operations, W-SCOPE CHUNGJU PLANT CO., LTD. (WCP) continues smooth mass production on its 4 existing lines, while installation of cumulative Lines 14 and 15 has been completed. Following product prototyping, the Company is awaiting the start of mass-production shipments from the new lines.」

「At W-SCOPE CHUNGJU PLANT CO., LTD. (WCP), the existing 4 lines are operating smoothly in mass production, while construction of new mass-production lines, WCP Film-forming Lines 5 and 6, is progressing. Trial operation is expected to begin in the second quarter of the current consolidated fiscal year.」

「With high utilization expected to be maintained throughout the year, including the expanded lines, operating profit is expected to improve substantially to ¥3,500 million, compared with an operating loss of ¥2,837 million in the previous fiscal year. Ordinary profit is expected to be ¥1,000 million, compared with an ordinary loss of ¥7,821 million in the previous fiscal year, and net income attributable to owners of the parent is expected to be ¥1,000 million, compared with a net loss attributable to owners of the parent of ¥11,174 million in the previous fiscal year.」

「At W-SCOPE CHUNGJU PLANT CO., LTD. (WCP), the cumulative No. 12 and No. 13 lines, which began operations in the second half of last year, steadily increased mass supply of automotive separators and made a significant contribution to the increase in revenue for the fiscal year.」

「As a result of promoting capital investment through the previous year to establish a stable supply system for major projects, the Company has completed preparations for mass production with 13 film-forming lines and 14 coating lines, and plans to add 2 film-forming lines and 4 coating lines during the current fiscal year.」

「As demand for coated products for automotive applications expands, WSK's 6 coating lines are operating steadily, and WCP has completed the installation of 4 coating lines.」

「Against this market backdrop, the Company is continuing to invest in equipment for large-scale separator manufacturing lines in line with previously agreed long-term supply volumes with customers, improving production capacity and productivity and preparing to meet rapidly growing EV demand.」

「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.」

「In response to growing demand for coated separators, a cumulative total of 10 coating lines are scheduled to begin operating at W-SCOPE KOREA CO., LTD.'s third plant.」

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

「The Company has been investing in equipment in preparation for expanding EV demand from the second half of 2019. Over the past year, 4 film-forming lines and 2 coating lines have begun operating, increasing fixed costs including depreciation. In addition, the Company is continuing to systematically expand separator film-forming and coating lines in preparation for the expected full-scale supply of mass-produced products to EV manufacturers among its customers from 2020 onward.」

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

「At the beginning of 2018, 9 film-forming lines were in operation for mass production. In addition, at WCP, completion of Large-scale Film-forming Lines 10 and 11 and their transition to mass production were expected during the first half, including during the second quarter. Furthermore, in response to growing demand for coated separators, a cumulative total of 6 coating lines were scheduled to begin operating at WSK's third plant.」

「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.」

「Against this market backdrop, the Company continues to improve its manufacturing lines and in-factory production environment to further enhance the quality and stability of separators, a material that ensures the safety of lithium-ion batteries, while working to further improve productivity in order to reduce manufacturing costs.」

「To respond to this market environment, the Company is strengthening its production structure to meet growing demand for ultrathin separators for smartphones, while increasing sales volumes of coated separators targeting high-end automotive batteries and EV-related applications.」

「The Group has already decided to invest in Lines 8 through 13 and coating equipment, and work has already begun on Lines 8 through 11 and the coating equipment.」

「The Group is working to expand production capacity to meet strong growth in customer demand.」

「To meet rising demand for high-capacity batteries from a broad range of customers, the Company expects to make aggressive investments in coating equipment and other facilities and entered into a committed term loan agreement totaling ¥14 billion dated 4 July 2016.」