NISSEI PLASTIC INDUSTRIAL

Establishing a production subsidiary in China
as the first overseas production site

July 2009 [News Release]

On July 1, 2009, Nissei Plastic Industrial Co., Ltd. established a wholly owned subsidiary "NISSEI PLASTIC MACHINERY (TAICANG) CO., LTD." in Taicang Economic Development Zone, Jiangsu to manufacture and process injection molding machines for the Chinese market.

This first Nissei overseas production base leased a local standard production facility (two-story factory), which has a total floor space of 4,463 square meters, including 3,240 square meters for the factory itself. Preparations are underway for full scale operations slated for October. The machine components will be supplied from Japan, and the molding machines will be assembled locally this year. Starting next year, the machines will be assembled using locally supplied components.

The establishment of the subsidiary will:

1.	Ensure the boost of unit sales and profits while reducing the overall costs by manufacturing general-purpose molding machines locally in China, which is a major market for injection molding machines.
2.	Maintain the product and cost competitiveness by continuously reducing the cost by increasing the numbers of locally supplied components.
3.	Establish the operation, which can correspond to changes in Chinese taxation law (import duty) related to molding machines.
4.	Consider the possibility of exporting those molding machines from China in the future.

The Economic Development Zone of Jiangsu was chosen as the production site for the following reasons:

1.	It is located in central China with great accessibility (highway, railroad, airport, and harbor).
2.	Commodity prices remain low despite neighboring to Shanghai (housing costs are one third of Shanghai).
3.	Taicang Economic Development Zone is actively seeking for foreign investments and offers favorable terms (as developing and small city). In addition, the labor costs are approximately 10% less than those of Shanghai.
4.	It is located near Kunshan, Suzhou, and Wuxi (about a half hour drive) where plastic molders are densely populated.
5.	It has a stable supply of electricity.
6.	The area has less natural disasters (flood, hurricane, and earthquake).

The types of injection molding machines that will be manufactured at this subsidiary consist of four main models of the electric type NEX series with clamping force of 50-180 tons and four hybrid type PNX & FNX series with clamping force of 40-180 tons, totaling eight types of small to mid size molding machines. The annual production goal is 30 units for the first year, 300 units for 2010, and 600 units after 2011.

As for the numbers of staff, three personnel will be sent from Japan, and twenty four people will be hired locally, totaling twenty seven staff members to start, and it will be increased to ninety staff members by 2011.

Up to this day, Nissei in China has been established mainly as sales and customer service sites in six different locations; with its subsidiary in Shanghai and their branches in Suzhou, Tianjin, and Dalian, and its locally incorporated Hong Kong office and their subsidiary in Shenzhen.

NISSEI PLASTIC MACHINERY (TAICANG) CO., LTD.
EXECUTIVES:	President, Kiyoto Takizawa Managing Director, Haruo Watanuki
CAPITAL:	210 Million Yen
ADDRESS:	No.111, North Dongting Road, Taicang Economic Development Zone, Jiangsu, China
TEL:	+86-512-53715656
FAX:	+86-512-53715657

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