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Press Release

March 19, 2010

Promoting Production Efficiency of the DISCO Group

DISCO Corporation (Headquarters: Ota-ku, Tokyo; President: Kazuma Sekiya) and its subsidiary DISCO Abrasive Systems K.K. (hereinafter referred to as "DAS," Headquarters: Shinagawa-ku, Tokyo; President: Kazuma Sekiya) have determined to transfer the current DAS production capacity for precision diamond products to DISCO as of March 2010. The products to be transferred are specifically 170 types of two items: metal bond blades with hub*1 and electroformed core drills*2.
DAS has also decided to integrate the R&D and manufacturing activities on industrial diamond tools and general wheels and blades – their main lines of work – at the Kure Plant in Hiroshima Prefecture into one building by the end of August 2010 to improve productivity.

Background and effect of transferring the production from DAS to DISCO
DISCO examined the production structure of the whole Group for the purpose of improving efficiency and discovered that the production of the above-mentioned precision diamond products could be transferred to DISCO because the parent company has the production facilities and technologies for metal forming, sintering, electrodeposition, and electroforming to manufacturer these products. This transfer enables the Group to eliminate a redundancy in the facilities.
Background and effect of concentrating the production building
At the Kure Plant, which is the heart of DISCO’s manufacturing since its incorporation in 1937, new buildings were built in accordance with the increase of products handled. At present there are nine buildings in total.
Dispersion over several buildings of the production, however, deteriorates the efficiency of the Group. Because of this, the Group examined the overall production structure and decided to consolidate the production capabilities of DAS into one building for higher productivity.
Aims of this production transfer and concentration
This reform enables DAS to establish a system where this DISCO spinoff can focus on their main diamond tools and general wheels and blades so as to recover sales which have been reduced since the Lehman Bros. shock due to cutback of public projects inside and outside of Japan.
DAS is considering an effective use of the space and facilities that will become available thanks to this production transfer.
The Group promotes improving production efficiency through elimination of overlapped facilities and integration of production space to optimize the whole production activities of the Group.
Sales organization in the future
DAS continues to sell these products in principle. (DISCO may conduct the sales activities for some customers.)
Note: This production transfer will not cause a downsizing of DAS or DISCO personnel.
Reference: DISCO Abrasive Systems K.K.
A subsidiary of DISCO Corporation, the world’s largest manufacturer of semiconductor dicing saws and grinders. Main businesses are the development, manufacturing, sale, and export of industrial diamond tools such as cutting wheels to be used for road construction and general wheels and blades. Capitalization is 490 million yen and the net sales for 2008 were 1,689 million yen.
URL: http://www.discoas.co.jp

*1 Metal bond blades with hub:

*2 Electroformed core drills:

Blades to be used for highly accurate slicing of hard or brittle materials, such as ceramics or glass

Drills that are installed to machining centers to groove or drill holes in hard or brittle materials, such as ceramic or glass

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