Daifuku to Edge Capacity as Demand Continues to Surge

Daifuku Co., Ltd. has started the renovations of its core production base Shiga Works in Shiga, Japan with the construction of two new factories.

Accordingly, the objective is to raise production capacity and optimize plant logistics.

Recently, the Company held a groundbreaking ceremony for the refurbishing in the two new factory buildings, Building G and Building M.

Artist’s impression of completed Building G (left) and Building M (right)

Capital investment in material handling continues to be strong, particularly in the e-commerce and semiconductor industries. Thus, the production volume at Shiga Works has increased to meet this demand.

The growth in the number of off-site warehouses for parts and product storage has taken a toll on logistics efficiency. For that reason, the Company will invest approximately 33 billion yen through 2028 to improve logistics efficiency. Specifically, integrating off-site warehouses within the facility and expanding production capacity at Shiga Works by 1.4 times. In addition, it also aims to ensure business continuity planning (BCP) by upgrading aging facilities.

Meet Customers’ Needs

Building G will house a cleanroom. This will combine the operations of its storage and transport systems for semiconductor and LCD production lines. Previously, the company dispersed these operations throughout the plant.

On the other hand, Building M will serve as a parts center to manage maintenance parts used for after-sales service for manufacturing and distribution systems. Moreover, it will also cater to manufacturing automated guided vehicles (AGVs) and the assembly of conveyor systems.

Groundbreaking ceremony for the the new factories

In addition, Daifuku is actively introducing renewable energy at its production facilities by installing solar power systems on both buildings.

The company acquired the 1.2 million square meter site in the vicinity of Shiga Works, which rose in 1970.

This will be the first large-scale development project at the plant in 18 years, since the completion of Building K and Building L in 2006.

Yasuhisa Mishina, General Manager of Shiga Works, said, “At the Daifuku Group, we have been improving our production framework to meet the needs of our customers. With the renovations at Shiga Works, we will further improve our productivity and logistics efficiency. Thus, building a strong foundation for Daifuku’s long-term growth.”

Mishina is also the Chief Production Officer and Senior Managing Officer at Daifuku.

08 May 2024