Home> Press Release> Press Release (2004)> ZEON Corporation Begins Construction on its Precision Optics Laboratory andInitiates Construction for a Second Boost in Production Capacity of ZEONOR FILM in Takaoka

ZEON Corporation Begins Construction on its Precision Optics
Laboratory and Initiates Construction for a Second Boost in Production
Capacity of ZEONOR FILM in Takaoka
June 16, 2004
On June 16, ZEON Corporation (President & CEO: Naozumi Furukawa) held a ceremony to mark the start ofconstruction of the Precision Optics Laboratory at the Takaoka Plant (Takaoka, Toyama Prefecture). On the samedate, a ceremony was held at the Takaoka Plant (Takaoka, Toyama Prefecture) of Optes Co., Ltd. (President:Masahiro Yamazaki), a wholly owned ZEON subsidiary, to mark the start of facility construction that will facilitatea second increase in production capacity of LCD optical film (product name: ZEONOR FILM®).
The Precision Optics Laboratory is being built to accommodate most of the precision processing researchfunctions currently being carried out at the Research & Development Center in Kawasaki, Kanagawa Prefecture.
Upon, ZEON can integrate R&D and production functions and enhance communication for design anddevelopment, thus further accelerate the speed of development of Optical products, including various opticalfilms, lenses, prisms, and diffusion plates.
The increase in the production capacity of ZEONOR FILM® is being carried out to meet the favorable increase insales and the rapid expansion of the LCD market, mainly for LCD TVs. Annual capacity will be increased fromthe existing 10 million square meters per year to 15 million square meters. Both projects are scheduled forcompletion in December 2004.
ZEON regards its specialty plastics business, which comprises high-performance transparent thermoplasticresin, cyclo-olefin polymer (COP; product name: ZEONEX® and ZEONOR®) and high precision-processed COP
products, as an area with significant growth potential, and has been aggressively investing in related plant andequipment in recent years. In early 2004, ZEON built a new production facility for LCD diffusion plates made withZEONOR® and doubled annual COP production capacity to 10,000 tons. ZEON intends to boost production
capacity for various products based on analysis of demand forecasts, while focusing on developing newproducts.
Supplementary explanation of COP
The Company is aiming at full utilization of C5 fraction, a by-product produced when ethylene and propylene arederived from naphtha. COP is made from dicyclopentadiene (DCPD) extracted and separated from the C5

fraction. ZEONEX®, a high-grade COP originally developed and marketed by ZEON in 1990 ahead of othercompanies across the globe, exhibits low water absorbency, superior fluidity and high-precision molding
properties when heated or melted, and a lower specific gravity. Utilizing its high transparency and low doublerefraction properties, it is mainly used for optical devices such as lenses and prisms for cameras on mobilephones, digital cameras, and compact cameras. It is also used in pick-up lenses for OA equipment and for
optical disks including CDs, MDs, and DVDs. In 1998, the Company launched ZEONOR®, a standard-grade
COP with improved impact- and heat-resistant properties as well as high transparency. It is widely used in the
manufacture of light guide and diffusion plates for LCDs, optical film, extensions for automobile headlights,tableware, and pharmaceutical containers and packages.

For further information
Zeon Corporation,
Department of Corporate Communications
Tel: +81-3-3216-2747