January 19, 2012

Terumo Corporation to Establish a New Production Factory in Yamaguchi Prefecture, Japan

Terumo Corporation announced today that it will establish a new production factory in Yamaguchi Prefecture, Japan. The objectives for newly establishing the factory are to increase the production of interventional systems products to meet growing global demands, to ensure its production capability for Drug and Device products* including ones for pain management, for which demand will grow in the future, and to further decentralize its production base for business continuity planning (BCP) perspective.
Terumo Corporation is to sign an agreement to build the facility with Yamaguchi City on January 23, 2012. The Company will invest a total of approximately 30 billion yen in the factory, which is scheduled to commence operations around the first quarter of FY2015.

* Drug and device products include syringes and infusion containers that have been pre-filled with therapeutic agents and other drugs. Through the combination of such drugs and medical devices, these products increase added value.

About Terumo Corporation’s global production system

Terumo Corporation is accelerating its growth globally, and plans to expand its outside of Japan production ratio in line with its ratio of outside of Japan net sales, which account for over half of its total. However, certain highly advanced and precise production technologies are difficult to transfer outside of Japan. Accordingly, Terumo Corporation has designated production factories in Japan as mother production factories that develop core technologies for advanced manufacturing and refine production technologies that underpin the amelioration of products.

Background for newly establishing the Yamaguchi Factory

The sales for interventional systems products is continuing on a path of double-digit growth worldwide, and drug and device products are expected to grow in sales in the future. Accordingly, Terumo Corporation decided to establish this production factory in Japan as these products require highly advanced production technologies which are difficult to transfer outside.
With the establishment of the Yamaguchi factory, Terumo Corporation will also further decentralize its production bases in Japan, which are currently located closely together in Shizuoka and Yamanashi prefectures, to ensure the company’s responsibility to continue the stable supply of products even in the event of a disaster or other incident to put BCP in effect.

Terumo Corporation will globally expand its production system while meeting growing demands for medical treatment around the world with its corporate mission of “Contributing to Society through Healthcare.”

Yamaguchi Factory Overview

Company Name: Terumo Yamaguchi Corporation
Location: Yamaguchi Techno Park, Yamaguchi city, Yamaguchi, Japan
Site Area: about 96,000m2 (land area); about 50,000m2 (total floor space)
Establishment Date: December, 2011
Projected Operation Commencement: the first quarter of FY2015
Production Items: Interventional systems products, Drug and Device products
including the ones for pain management
Number of Associates: about 130 persons (at the time of production start)
Target Markets: Japan and Other area
Target Sales: 30 billion yen (FY 2020)

Reference: Principal Production Factories of Terumo Corporation

Japan:

Fujinomiya Factory, Ashitaka Factory (Shizuoka Prefecture)
Kofu Factory (Yamanashi Prefecture)

Outside Japan:

Terumo Medical Corp. (USA)
Terumo Europe N.V. (Belgium)
Terumo Penpol Ltd. (India)
Terumo Medical Products (Hangzhou) Co., Ltd.
Terumo (Philippines) Corporation
Terumo Vietnam Co., Ltd. etc.

(Notice) Among the information that Terumo discloses, forecasts of financial performance on future projections contain potential risks and uncertainty since these are forecasts on projections made by Terumo based on limited information available at the moment of disclosure. Accordingly, it should be noted that actual results may differ from those forecasts on projections due to various factors. Factors affecting to actual results include, but are not limited to, changes in economic conditions surrounding Terumo, fluctuations of foreign exchange rates, and state of competition.
The market share information in this booklet is partly derived from our own independent research.

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