Nippon Mektron Opens New FPC Factories in China and Thailand

Nippon Mektron, which is NOK Corporation’s subsidiary and the world largest FPC (flexible printed circuit) manufacturer, opens new FPC factories in China and Thailand. In China, Mektron is constructing no.2 factory inside the existent subsidiary, Mektec (Suzhou), to newly start upstream operation. In Thailand, Nippon Mektron decided to set a rental factory in Rayong Province for the business continuity in the case of disaster or other risks. Mektron holds 25-30% shares in the global FPC market.

Mektec (Suzhou) has operated FPC’s upstream process so far. Intermediate products have been sent from other factories in Taiwan and Japan. Mektec (Suzhou) becomes to have FPC integrated production system, which contributes to more speedy output expansion and shorter lead time. Nippon Mektron invests approximately 3 billion yen for the construction of no.2 factory. The new factory is expected to enter mass production in September-October 2012.

In Thailand, Nippon Mektron has already operated 2 productive sites in Ayutthaya Province. These factories were damaged by flood in 2011 and recently returned to operation. Nippon Mektron decided to open the third factory in Rayong with approximately 1 billion yen of investment to diversify flood risk.

FPC usage is strongly increasing for smart phones and tablet PCs. NOK Group plans total 18.5 billion yen of annual investment for its electronic material business in fiscal 2012 ending in March 2013. Mektron presently operates 4 factories in Japan and 10 factories in China, Taiwan, Thailand and Europe.