Construction of new plant for production of large-size products completed

13 May 2009

Production capacity increased threefold
To serve as the Group's logistics & stock hub, significantly contributing to cost reduction
The Biwako Plant begins operation in June as a production and logistics site.

HORIBA owns a plant site in Otsu City, Shiga Prefecture. Construction of the first plant on the site began in August last year and was recently completed. Full-scale production will commence in June as a plant exclusively producing large-size products for automobile testing systems and semiconductor production systems.

Compared with the existing headquarters plant, the capacity of the new plant for manufacturing engine testing equipment is three times larger. The new plant also has manufacturing space for large-size products related to semiconductors and flat panel displays. Through in-house and concentrated production, HORIBA strives to improve the quality of its products and reduce the lead time until delivery.

All product and parts inventories will be stocked and centrally managed in the new plant, aiming to significantly reduce the logistics and inventory costs of the entire HORIBA Group by 20% or more.

Production Facility Expansion

The new plant is our first production facility in Japan that manufactures large-size products for automobile testing and semiconductor production systems. In addition to automobile exhaust gas testing equipment produced by the headquarters plant, engine test-related equipment will be produced in the new plant with production capacity three times larger than the headquarters plant. Through this combination, HORIBA will be able to satisfy complete automobile testing needs, not just testing of exhaust gas, and thereby ensure quick delivery of products with high quality.

For products for semiconductor production systems, a large clean room will be constructed to enable in-house production of large-size products. With all production processes for producing the thin film analyzer-used in the flat panel display production process-and other products now conducted in the new plant, product quality will be improved, and lead time until delivery and production costs will be reduced.

Using centralization to improve efficiency of the Group's logistics operations

The new plant will serve as a central logistics center for the HORIBA Group. Finished goods and parts that have been stocked in and controlled separately by all six sites will now be concentrated at the new plant, where an optimum logistics management system will be introduced.

By concentrating inventories at a single site, inventory management, receiving, delivery and other relevant operations are centralized. Moreover, a modal shift will be promoted and the latest automatic logistics systems will be introduced to improve the overall quality of the inventory system.

• Outline of the new plant

Land area:

3,026 m2

Total construction cost:

approx. ¥1.6 billion

Building area:

1,891 m2

Total floor area:

7,506 m2

Structure and size:

5 stories, steel-framed; some sections are steel-framed and reinforced concrete structures.


Production of products related to automobile and semiconductors, and concentration of logistics management functions