|The Company has decided to have an additional manufacturing line of large PET bottled drinks, aiming to start its operation in June 2003.
This facility is a manufacturing line specifically for large PET bottled drinks of 2 liters and 1 liter (including 900 milliliter), and its capacity is about 38,000 cases per day (which correspond to about 228,000 bottles of 2 liters).
The reason why the increase has been decided is to cope with a recent demand increase in not only outdoor consumption of small PET bottled drinks, but also in tea drinks and sports drinks of 2 liters for household use, amid a rapid transfer from tinned drinks to PET bottled drinks.
This time, a new factory building of two stories will be built within the site of the existing factory, and the ground floor will be used to place a manufacturing line and tea extraction facilities, and the 2nd floor will be used as a warehouse for storage of materials and finished products.
This factory building and machinery equipment will cost as much as about ¥3.0 billion, about ¥1.6 billion of which will be leased, and the balance of ¥1.4 billion will be provided by the Company's own funds and long term loans (details will be decided later). The reason for using part of it as a lease is to maximize the investment efficiency by reducing excessive burden of initial money.
Accompanying this addition to facilities, the number of the Company's production lines of PET bottled drinks will rise to 6 lines, and the total production capacity of PET bottle drink will rise by about 35%.
The Company expects to be able to fully cope with the demand for an increase in production from the customers.