Business News
Dai Nippon Printing and Sony Chemical & Information Device Start Discussion on the Transfer of Thermal Transfer Ink Ribbon Business to Dai Nippon Printing
Monday 31. March 2008 - Dai Nippon Printing Co., Ltd. (DNP) and Sony Chemical & Information Device Corporation (SonyCID) have signed a legally non-binding letter of intent regarding the transfer of SonyCIDs global thermal transfer ink ribbon* business to DNP*2.
The two companies will start to study various issues, including suitable transfer methods which comply with the laws and regulations of relevant jurisdictions, along with other concrete matters, aiming for the early conclusion of a legally binding definitive contract with a view to complete the transfer by July 2008.
DNP began manufacturing and marketing thermal transfer ink ribbons used in facsimile machines in the early 1980s, and has steadily expanded applications to include bar codes which it developed in the early 1990s. DNP has successfully developed this business on a global scale, and maintains manufacturing and sales bases in the United States, France and Japan.
Bar codes are used in a variety of different industries, including product traceability and components management at manufacturing sites. Demand for thermal transfer ink ribbons for bar code systems continues to grow steadily. DNP expects to expand this business in response to the increased demand in a timely manner, following the transfer of the relevant manufacturing facilities from SonyCID. With this transfer, DNP anticipates increasing its competitiveness and its ability to move toward common sourcing of materials, as well as increased production and operating efficiencies through the strengthening of existing manufacturing and sales bases.
SonyCID will invest the capital gained from this transaction to focus on the growing optical film and electronic device business and reallocate its resources to facilitate more rapid expansion in that area. c
DNP plans to offer employment at DNP to the employees at SonyCID’s thermal transfer ink ribbon manufacturing facilities in Pittsburgh, Pennsylvania (the United States) and Amsterdam (the Netherlands), in accordance with applicable laws and regulations.
Dai Nippon Printing Co., Ltd.
Head office:
1-1-1 Ichigaya Kagacho, Shinjuku-ku, Tokyo
Representative Director and President: Yoshitoshi Kitajima
Capital: ¥114.46476 billion
Sony Chemical & Information Device Corporation
Head office:
Gate City Osaki, East Tower 8th Floor, 1-11-2 Osaki, Shinagawa-ku, Tokyo
Representative Director and President: Masayoshi Sugiyama
Capital: ¥5.48 billion
* Thermal transfer ink ribbon
Materials used when printing fax, word processor and bar codes in a thermal transfer printing format. Thermal transfer ink ribbons are manufactured using ink made of carbon and colored pigments for printing which are mixed with wax and then attached at a thickness of several microns to the surface of a film which acts as the base material. When heat is transferred to this film from the thermal head, only the heated portion melts and is attached to the paper.
*2 Some of (i) the assets and (ii) the existing business relationships with customers, etc. are not expected to be transferred.
* Product price, specification and service content listed in this news release are as of time of going to press. This data may change without notice. We apologize for any inconvenience.