In order to strengthen its production system of building materials for which demand is expected to continue to expand following a constant demand for office transfers and office renovation, ITOKI CORPORATION (President: Kiyotaka Kaneko) will build a new plant that will manufacture all our building materials in the Toke Midori no Mori Industrial Complex in Chiba-shi, Chiba.
We expect construction of the new plant to begin in October 2007, and will operate the plant from November 2008. At this plant, we will manufacture the main products of our building material business such as partitions and doors. The investment amount related to the construction of this new plant is approximately 6 billion yen, and we anticipate that the production capability will be increased by approximately 50% by 2009.

At the new plant, we aim to significantly strengthen our production capability, to improve production efficiency by consolidating our production bases and introducing the latest facilities, and to strengthen our price competitiveness by reducing construction costs by expanding plant processing. Moreover, by making good use of the location of this site, in the Tokyo metropolitan area, where the highest demand exists, we will be able to reduce distribution costs and delivery times.
We see our building material business as a business that will grow and expand into a second profitable pillar, after our office furniture business. We aim to increase our annual sales in building material to approximately 20 billion yen in FY2009 (Approximately 30% up from the sales in FY2006).
We will review our business structure construction to better meet our customers’ needs, which are becoming diversified, from the perspective of “profitable growth,” and aim to strengthen and expand our business base to maintain excellent growth potential and efficiency.

Itoki Chiba Plant