Reorganization of Optical Enterprise

Seiko Instruments Inc. (abbreviated:SII, COO:Akio Irie, Head office:8, Nakase, 1-Chome, Mihama-ku, Chiba-shi, Chiba. TEL:+81-43-211-1111)transfers the optical parts manufacturing unit to Dalian Seiko Instruments Inc. in China and Morioka Seiko Instruments Inc. in Shizukuishi-cho at Iwate as per the new strategy of reforming the profit profile of optical enterprise by strengthening and concentrating technical expertise.

Cost competitiveness is improved by producing general-purpose, mass-production items, such as Zirconia ferrules, a connector, and a jumper cable, in Dalian Seiko Instruments Inc.(100% subsidiary of SII), which is a manufacturer of watch parts in Dalian China. On the other hand, Morioka Seiko Instruments Inc.(100% subsidiary of SII) is a watch-manufacturing unit in Shizukuishi-cho, Iwate. It makes the optical parts using the micromechatronics technology developed by them for watch manufacturing. The optical parts are the high value added products and need to be produced by a standardized process, which is technologically innovative and highly precise. This was till now done by distributing workload to Morioka and Nasu but will now be concentrated at Morioka.

As per the transfer arrangements, the manufacturing at Nastec Precision Co., Ltd.(CEO:Kenta Maeda, Address:532-10, Shimo-tano, Shiobaramachi, Nasu-gun, Tochigi 329-2811 TEL:+81-287-35-2761) will be over by this autumn, and then the operations will be started at the head office of Morioka Seiko Instruments Inc. It has been positioned as a control tower to manage production of this optical industry with total concentration on mass-production, trial production, manufacturing techniques and quality control.

After bursting of the IT bubble, the optical-communications market has faltered the world over and resulted in a rapid economic slump since summer of 2001. The sales of SII optical enterprise also fell sharply. However, in the field of general-purpose ferrules, the market recovery has already begun. It is important that SII should respond to market recovery promptly, strengthen its cost capacity to correspond with the market demand by proceeding with the reform measures for the profit profile. To be the leaders in the field of optical communications when the full-scale market recovery takes place, the establishment of new technology using innovative micromechatronics technology is necessary.

Contact Information
Seiko Instruments Inc.
Corporate Strategy
Corporate Communications Dept.
Yako, Kanou

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