Tokyo based firm, Dainippon Ink and Chemicals (DIC) will set up a printing inks manufacturing plant in the Indian state of Gujarat. DIC’s decision to set up the new plant in India was made with the aim of positioning itself to respond to future growth in the markets of Asia and Oceania.
DIC says, its current medium-term management plan is to ensure the world’s lowest cost structure for its inks business. Adding it is endeavoring to secure a 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 centralised production bases and shift to the procurement of key raw materials within the group.
A company statement says, “DIC is promoting the establishment of regional mother plants, a manufacturing hub with the aim of creating an optimal Groupwide seamless supply structure.”
DIC continues, “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.”
The company will invest approximately ¥3.5 billion 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 statement concludes, “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.”
