Reagent manufacturing plant for hematology analyzers construction commences in India

Local production and supply of reagents for hematology analyzers will commence at the beginning of next year
For expansion and acceleration of medical business in India

In the middle of this month, construction will begin on our new plant in India for manufacturing reagents for hematology analyzers. To promote sales expansion of our medical business in India, we plan to begin producing reagents in India around the beginning of next year. The plant will have a production capacity of about 2,000 tons a year. Total investment will amount to about 200 million yen. We will endeavor to expand the medical business in India by this project, in combination with the sales promotion of a new product introduced in July 2012.

Medical Business in India

Since opening our local company in 2006, we have expanded our operations in India, mainly in the area of the Automotive Test Systems business. Supported by the rapid economic growth in India and the resulting improvement in personal income, the overall medical-related markets continue to grow; the medical business of HORIBA is also increasing.
Hematology analyzers use a liquid reagents to measure the number and ratio of red blood cells, white blood cells and other important elements in the blood. Increases in the quantity of installed instruments and the number of tests will lead to increase in demand for our consumable reagents. Since future sales increases are expected, we decided to begin local production of reagents so that we can deliver them promptly to customers.
To reduce construction time, we acquired an existing plant in Uttarakhand Province in the northern part of India, and will install necessary reagent manufacturing facilities in the plant. We plan to begin production at around the beginning of 2013. Moreover, in July 2012, we introduced to the international market the MicrosemiCRP, compact product having a high market share in Japan. With the support of the prompt consumable supplies delivery system, we will promote sales of this new product in India; this will contribute to the development of medical practice in the country.

International Expansion of Medical Business

We have the reagent pant in Japan, France, China and Brazil. India will be our fifth production site. We have emphasized the expansion of regaent plants in emerging countries. In February 2011, a new plant was completed in China. In Brazil, construction was initiated to expand the reagent plant, with the aim of commencing operation by the end of 2013. On August 31, 2012, construction to expand the reagent plant in Japan was completed. We hold the medical business as one to be emphasized in the Mid-Long Term Management Plan. Expansion of the business will be accelerated to achieve the goal of the plan through these facility investments.

Outline of the new plant