Sysmex : to Reinforce IVD Instrument Production to Support Total Solutions in Clinical Testing- Expansion of Subsidiary's Manufacturing Factory Ensures Stable Global Supply and Enhanced Laboratory Productivity

December 5, 2023

Sysmex Corporation

Sysmex to Reinforce IVD Instrument Production to Support Total

Solutions in Clinical Testing

• Expansion of Subsidiary's Manufacturing Factory Ensures Stable Global Supply and Enhanced
  Laboratory Productivity -

Sysmex Corporation (HQ: Kobe, Japan; President: Kaoru Asano) has decided to relocate and

expand the factory of its subsidiary Sysmex RA Co., Ltd. (HQ: Shiojiri City, Nagano Prefecture) within the city of its current location in order to reinforce the production function for IVD instruments to meet increasing global demand. Sysmex RA is responsible for the design and production of sample transportation system1 products and peripheral equipment for IVD instruments, which are essential to total solutions in clinical testing. This expansion will double Sysmex RA's current production capacity, with operations at the new location scheduled to commence in April 2025.

In recent years, advanced countries have been seeking greater efficiency in clinical laboratory operations due to curtailed healthcare expenditures. As a result, alongside enhanced functionality of analyzers, there is a growing demand for workflow efficiency in the entire clinical testing process, such as automating and speeding up the pre- and post-measurement processes as well as the transportation of samples between analyzers to handle a variety of testing orders.

In 1990, Sysmex developed and launched the world's first fully automated sample transportation system in the hematology field, which handles every step up to smear preparation. Since then, Sysmex has been committed to expanding its product portfolio, aiming to provide operational value that realizes high productivity and safety in clinical laboratories. A key factory in the Sysmex Group, Sysmex RA is engaged in design through production of products that support total solutions in clinical testing, including sample transportation system products for IVD instruments. Sysmex RA has recently been contributing to raising the efficiency of laboratory operations worldwide through the production of sample transportation system modules equipped with the world's first automated measurement function for quality control material.

Sysmex RA's factory will be expanded at its new location in order to reinforce the IVD instrument production function to meet increasing global demand in the mid- to long-term. The production capacity of Sysmex RA will almost double due to the expanded production area, as well as enhanced production efficiency through the use of standardized parts and units, greater line flexibility and automated in-factory logistics using robots. In addition, it will be provided with a BCP function to respond to contingencies, such as disasters, at other group factories. Furthermore, the existing factory will be reorganized as a design laboratory to accelerate commercialization of new technologies and open innovation will be promoted by taking advantage of the high concentration of precision instrument manufacturers in Nagano Prefecture, with the aim of further enhancing operational value that anticipates customer needs. Also, with a view to becoming carbon neutral by 2040, the new factory will meet the certification criteria for a "Net Zero Energy Building (ZEB)",2 which will include the installation of solar power generating facilities.

Going forward, the Sysmex Group will continue to be united in efforts to provide a sense of security among customers around the world.

Overview of new factory
Location:	Shiojiri City, Nagano Prefecture (Japan)
Site area:	14,960 m2
Start of operation:	April 2025 (Scheduled)
Total investment:	Approx. ¥4.7 billion

Products manufactured: In vitro diagnostic instruments and peripheral equipment

Conceptual exterior image of the new factory

References

Press release dated May 12, 2022: "Declaration of Achieving Carbon Neutrality by 2040 - Contributing to the Realization of a Sustainable Society Through Initiatives to Deal with Climate Change."

https://www.sysmex.co.jp/en/news/2022/220512_04.html

Press release dated July 1, 2022: "Sysmex Launches Sample Transportation System Modules for XR™ Series of Automated Hematology Analyzer - The world's first automated quality control material measurements contribute to greater automation and efficiency in clinical testing." https://www.sysmex.co.jp/en/news/2022/pdf/220701.pdf

Terminology

1. Transportation system:
   A transportation system is a system for the automated transport of samples among analyzers by connecting them together, to allow various combinations of analyzers and testing operations. Transportation systems and their peripheral equipment make testing operations more efficient and less labor-intensive by automating tasks that were previously done manually and sorting samples to match the testing processes required.
2. Net Zero Energy Building (ZEB): A ZEB is a building that aims to achieve a zero net annual primary energy consumption balance through the use of high-efficiency systems that significantly reduce energy consumption while maintaining the quality of the indoor environment, in combination with using energy from renewable sources (energy creation).

The information contained in this press release is current as of the date of the announcement but may be subject to change without prior notice.