Terumo Expands Production in AsiaNew Factory Established and Existing Facilities Expanded in Vietnam and the Philippines

Terumo Corporation (TOKYO:4543) announced today that it will expand its production facilities in Asia to meet anticipated sales increases in the medium to long term, based on its corporate growth strategy. Terumo Corporation will establish a new factory in Vietnam, its second in the country, as well as expand the production scale of existing factories in Vietnam and the Philippines. The total amount invested will be 15 billion yen.

The new factory in Vietnam will produce blood management products such as blood bags to meet growing global demand, especially in emerging countries.

In cooperation with Ashitaka factory (Shizuoka prefecture) and the new Yamaguchi factory in Japan (operation to be started in 2015), the existing factory in Vietnam will expand the production scale of interventional systems products, sales of which have been growing at a double-digit pace. The company will also establish a new production building at the existing factory in the Philippines to cope with needed production increases of syringes and needles.

To improve its global competitiveness, Terumo Corporation is seeking to enhance the production capacity across all of its three business areas: Cardiac & Vascular, General Hospital, and Blood Management.

Terumo Corporation's global production system

Terumo Corporation is accelerating its growth globally, and plans to increase the percent of production done outside Japan in line with the growth in the share of net sales outside Japan, which already account for over half of the total. Accordingly, the company has positioned factories in Asia as its global production center and is already producing a broad range of products in China, the Philippines, and Vietnam.

On another front, certain highly advanced and precise production technologies are difficult to transfer outside of Japan. The company has designated factories in Japan as mother production factories that develop and refine core manufacturing technologies to underpin product improvement.

Terumo Corporation will continue to enhance its global production system in factories in Asia and Japan to meet growing global demand while increasing cost competitiveness.

Factories Overview

1. Vietnam: a new factory to be established

In April 2012, Terumo BCT was established through the integration of CaridianBCT and Terumo Transfusion, following Terumo Corporation's acquisition of CaridianBCT in April 2011. The company will establish a new factory in Vietnam to produce blood management products to meet growing global demand, especially in emerging countries. The factory will be its sixth production facilities of blood management products, following ones in Japan, U.S., UK　(Northern Ireland), China and India.

• Production items: blood bags and other blood management products
• Projected operation commencement: the second quarter of FY2015
• Location: Vietnam *specific site is under consideration
• Land area: 10ha
• Target markets: global markets

2. Vietnam: an existing factory to be expanded

In cooperation with factories in Japan, Terumo will establish a new building at existing factory in Vietnam to expand the production scale of interventional systems products to meet growing global demand.

• Production items: interventional system products
• Projected operation commencement: the first quarter of FY2013
• Location: Hanoi, Vietnam *At existing factory in Vietnam
• Gross floor area: 20,000m2
• Target markets: global markets

3. The Philippines: an existing factory to be expanded

Terumo will establish a new building at existing factory in the Philippines to expand the production scale of syringes and needles to meet global demand.

• Production items: syringes and needles
• Projected operation commencement: the first quarter of FY2013
• Location: Laguna, Philippines *At existing factory in the Philippines
• Gross floor area: 97,000m2
• Target markets: global markets

Reference: Principal Production Bases of Terumo Corporation

Japan:

Fujinomiya Factory, Ashitaka Factory (Shizuoka Prefecture)

Kofu Factory (Yamanashi Prefecture)

Outside Japan:

Terumo Medical Corp. (USA)

Terumo Europe N.V. (Belgium)

Terumo Cardiovascular Systems Corp. (USA)

Terumo BCT, Inc. (USA)

Terumo Penpol Ltd. (India)

Terumo Medical Products (Hangzhou) Co., Ltd. (China)

Terumo (Philippines) Corp. etc.

Factories total: 24 （Japan 5, Outside Japan 19）As of May 2012