Pentax 2002 Annual Report Download - page 11

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Hoya is one of the few companies that perform integrated manufacturing of glass disks, from
glass materials to media. By employing this expertise to the maximum extent, it will be possible for us
to take a great leap forward in the competitiveness of both our substrate and media products. To
strengthen the competitiveness of Hoya glass disks, the Company has set a goal of developing next-
generation technology after two years, and preparing the necessary manufacturing facilities.
Optical Glass
Net sales of optical glass materials and lenses declined as a result of cutbacks in digital camera and cam-
corder production and inventories, as well as customer demands for price reductions following the
September 11 terrorist attacks in the U.S.
The environment surrounding the optics business has been steadily deteriorating for several
years. The need to respond flexibly to customer demands for lower prices and shorter lead time has cre-
ated difficulties with regard to the Company’s business structure. Therefore, Hoya executed radical
reforms during the fiscal year under review, implementing a new manufacturing system.
Until recently, the Company conducted integrated manufacturing at its Akishima Plant
(Akishima, Tokyo) that covered every stage of production, from the melting of the glass to forming,
grinding and polishing. By dedicating that facility to the melting of the raw materials for glass, while
concentrating the production of aspherical molded lenses and lens forming and polishing in Thailand,
the Company has raised both the operating ratio and the production efficiency at the plants. Since our
customers are promoting the shift of their manufacturing bases to Asia, we prepared HOYA OPTICAL
(ASIA) CO., LTD. in Hong Kong to administrate marketing, optimal production site and logistics. In
addition, the Company specialized Japan’s manufacturing facility in technology development and highly
difficult products. Not only does this shorten lead time and reduce costs, but it constitutes management
driven by efficiency enhancement through technological ability.
9
pt.2
Optical Communications Products
The market for optical communications products continued to cool during fiscal 2002, and net sales in
this area declined significantly. However, major growth is forecast for this market through 2004, and
this is thought to be an area well suited to Hoya’s particular strengths and in which the Company can
successfully compete. In preparation for entering this market, and to enable us to remain strong in the
area, we are continually engaged in R&D with long-term objectives.
Laser Products
In addition to the effect of the Company’s restructuring in this area, North American sales of laser
products for medical use were solid, as were European sales of laser products for chemical science use,
and domestic sales to the semiconductor and LCD industries. As a result, net sales in this area were
higher than for the previous fiscal year.
Operational Review part 2