Press Release

Kaken to outsource the West Japan Distribution CenterMarch 24, 2003

 KAKEN PHARMACEUTICAL CO., LTD. (headquarters: Bunkyo-ku, Tokyo; president: Shiro Inui) agreed with Itochu Corp. (headquarters: Chuo-ku, Osaka; president: Uichiro Niwa) on March 20 to outsource operations of one of its two distribution centers, the West Japan Distribution Center (Shiga Prefecture), to Itochu.

 

 The current West Japan Distribution Center, constructed on land where one of the company’s production facilities used to be, has become too old and needs to be reconstructed. Kaken therefore has decided to lease a warehouse for drugs which is under construction by Itochu in Hirakata, Osaka Prefecture, as its new West Japan Distribution Center and outsource all distribution services, including shipment to wholesalers, in the western part of Japan to Itochu.

 

 Itochu optimizes and undertakes distribution services for multiple drug companies in order to help them upgrade their services while containing their costs.

 

 The outsourcing will make it possible for Kaken to not only greatly reduce costs compared to the costs needed when independently constructing and operating a new distribution center but also freely expand the facility in the future, achieve a better balance in its assets, and transfer more employees to its core business.

 

 The new West Japan Distribution Center will start operation on May 19, 2003. There will be no changes in the operation of the East Japan Distribution Center in Chiba Prefecture.

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