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September 3, 1998
"Optical Transmission Devices"
"Submarine Transmission Systems"
"Otsuki Plant"
NEC Corporation announces that NEC Yamanashi Ltd., Otsuki Plant has completed the construction of its new building and is ready to start its operations. The expansion, initiated in April 1997, costs 10 billion yen. NEC Yamanashi is NEC's major production center for optical transmission systems whereas the Otsuki Plant's main products include optical devices and key components for communications equipment. It includes products such as WDM optical amplifiers, LD modules and SMT/PLC modules for optical access transmission systems. With the expansion of this plant, NEC Yamanashi now is one of the world's largest manufacturing facilities for optical transmission systems.
With the expansion, 18,000 sq meters of plant floor space has been added to the existing 20,000 sq meters. Due to the rapid growth of the multimedia and internet-related industries, the production of optical modules at the Otsuki plant now stands at 1 million units, a 50% increase compared to that of the previous year. With this expansion, the production amount in 1999 is expected to double.
In July, NEC has brought all submarine cable systems-related production / testing lines to the Otsuki Plant. As a result, the Otsuki Plant has become the total manufacturing center for submarine cable systems, components and devices to whole systems. To date, NEC's accumulated production for submarine cable systems amounts to about 2,000 for the past 30 years. With the new manufacturing lines, it is expected that the Otsuki plant will manufacture around 300 submarine systems this year and the number will be doubled in 5 years time. By that time, NEC is targeting to have 30 % of the market and projects an annual sales figure of 40 billion yen in this area.
Recently, demand for high-speed, large capacity telecommunications infrastructure is expanding due to the rapid growth in multimedia and Internet markets. NEC has strongly been involved in the WDM, high-speed access system and large capacity optical submarine cable system areas, which are key technologies for optical transmission systems. NEC has already received orders for WDM systems from telecommunications carriers in North America, China and Japan. NEC has supplied total broadband access systems for Hongkong Telecom's world first interactive multimedia project this year. NEC has been involved in most of the major submarine cable projects and has recently received orders for China-U.S. Cable Network and Japan-U.S. Cable Network projects.
With the expansion and restructuring, NEC Yamanashi and its Otsuki plant becomes the most important and strategic manufacturing center for NEC's optical transmission systems business. With this, NEC will maintain it status as one of the major suppliers of optical transmission systems in the world. Particularly in the WDM area, NEC is targeting more than 20% share of the $7 billion worldwide market in year 2000.
| Address: | NEC Yamanashi Ltd. headquarters and Yamanashi plant----Yamanashi City, Yamanashi prefecture Otsuki plant ---- Otsuki City, Yamanashi prefecture |
|---|---|
| President: | Yoshihiko Miyazaki |
| Capital: | 3 billion yen (NEC Corp 100%) |
| Salesl: | 100 billion yen (FY 1998, plan) |
| Date of Establishment: | (March 1998)* |
| Number of Employees: | 1150 |
| Land: | 88,000 sq meters |
| Building: | 64,000 sq meters |
*NEC Yamanashi Ltd. Yamanashi plant and Otsuki plant were formerly operated by NEC Corp.. In March 1998, these plants were restructured as a manufacturing subsidiary named "NEC Yamanashi Ltd Yamanashi and Otsuki plants" to achieve more efficient and flexible business management and production.
| Land: | 47,000 sq meters |
|---|---|
| Building: | 38,000 sq meters (Newly expanded plant--18,000 sq meters) |
| Number of Employee: | 590 |
| Production sites: | totally clean room (class 100, 1000, 10000) |
