DIC announces plans to set up state-of-the-art printing ink plant in India.

Dainippon Ink and Chemicals, Incorporated (DIC) announced it has decided to set up a new state-of-the-art printing inks manufacturing plant in Dahej, a Special Economic Zone (SEZ) in the Indian state of Gujarat.

One of the key strategies DIC has set forth in its current medium-term management plan is to ensure the world's lowest cost structure for its inks business. DIC is endeavoring to secure an absolute competitive advantage by guaranteeing both the world's lowest costs and superior product quality, as well as to establish a new DIC Group inks manufacturing structure focused on centralized production bases and shift to the procurement of key raw materials within the Group.

To these ends, DIC is promoting the establishment of regional mother plants, a manufacturing hub with the aim of creating an optimal group-wide seamless supply structure.

Growth in the printing inks market in Asia continues to outpace the region's GDP. DIC already has numerous printing inks production bases in Asia, but nonetheless recognizes the need to reinforce its manufacturing capacity to capitalize the expected market growth in the years ahead.

DIC's decision to set up its new plant in India was made with the aim of positioning itself to respond to future growth in the markets of Asia and Oceania by securing India's competitive advantages in terms of low cost base as well as in consideration of logistics and other costs. The plant will be the DIC Group's second mother plant in Asia. The first is in Nantong, in the People's Republic of China.

DIC will invest approximately 3.5 billion [yen] to build the new plant, which is scheduled to begin operating in July 2009. The plant's annual production capacity will be increased incrementally to a maximum of 30,000 metric tons. DIC will also introduce the latest manufacturing process on ink production lines in a bid to dramatically lower the manufacturing costs.

The new plant's location in an SEZ means DIC enjoys tax friendly import and export regulations. Accordingly, DIC plans to develop the plant into a major supply base for printing inks dedicated to supply the other countries and states in Asia and Oceania. Going forward, DIC will also consider expansion of facilities as necessary to accommodate increased demand.