Nippon Kodoshi (TSE: 3891) will add a manufacturing line at its Yonago plant in Tottori Prefecture, after its board resolved on 29 October 2026 to proceed. The company says the line will raise its separator production capacity to about 1.3 times the current level.
What the money buys
The total investment is about ¥15bn, covering buildings and separator paper-making equipment on the existing Yonago site. Funding will come from the company's own cash and borrowings. The notice gives no split between the two and no loan terms.
Why now
The separator in question is used in aluminium electrolytic capacitors. The company describes separators for those capacitors as its main product and says it holds a high share in them. Nippon Kodoshi says demand has stayed high as generative AI spreads and investment in AI servers and data centres grows. It cites that demand, together with current plant utilisation, as the reason for adding capacity.
Timetable
Construction is planned to start in May 2027, with the equipment due to begin operating in December 2028. Both dates are plans, not completed steps. The company places the start of operation in the fiscal year ending March 2029 and says the effect on consolidated results for the year to March 2027 will be minor.
The 1.3 times figure is the company's own and refers to production capacity for AI-server and data-centre demand. The notice does not say whether the measure is total company capacity or the separator line alone.