#Japan #Optical Fiber #SWR® #Sakura #Next-Gen Factory

Investment in Next-Gen Optical Fiber and SWR® Factory

In a recent board meeting held on August 7, 2025, the company announced plans to construct a new factory dedicated to the production of next-generation optical fiber and SWR® technology. This decision comes in light of the growing demand within the data center market, primarily driven by the widespread adoption of generative AI.

Reasons for Acquisition

The company recognizes the increasing demand for high-performance optical fibers, particularly as more businesses transition towards AI-enhanced operations. Our current offerings, particularly the SWR® and WTC® products, have positioned us favorably in the industry, enabling us to compete effectively in this rapidly evolving landscape. Thus, there is a clear need to bolster our manufacturing capabilities to meet the expected surge in market demand.

The proposed investment will introduce innovative manufacturing technologies across various stages of production, including raw material processing, spinning, and SWR® production. By implementing cutting-edge equipment, we aim to enhance our cost competitiveness and ensure that we continue to lead in addressing the needs of our clients.

Details of the Acquisition

1. Location: The planned facility will be situated at 1440 Rokuzaki, Sakura City, Chiba Prefecture.
2. Assets Involved: The investment will cover the construction of factory buildings and the necessary production equipment to support operations.
3. Investment Amount: The projected investment is approximately 45 billion yen (approximately USD 410 million).
4. Operational Start Date: The factory is expected to commence operations in the fiscal year 2029.

Future Outlook

The company does not anticipate any changes to its consolidated financial forecasts for the fiscal year ending March 2026 as a result of this new investment. Nevertheless, should any additional information arise that requires disclosure, we are committed to providing timely updates as part of our transparency policy.

In conclusion, the establishment of this next-generation optical fiber factory not only signifies our dedication to remaining at the forefront of technological advancement but also highlights our commitment to meeting the needs of our customers in a market that continues to grow exponentially. We are excited about the potential this new facility will bring and are optimistic about the future.

This ambitious project underscores our strategic vision to integrate advanced technologies into our production processes, paving the way for a stronger, more efficient manufacturing era within the optical fiber landscape.