Toho Tenax, which is engaged in the business of carbon fibers within the Teijin Group, announced on October 11 that it has decided to add a new carbon fiber production line at Toho Tenax Europe GmbH located in Germany (hereinafter referred to as "TTE"), a wholly owned subsidiary of Toho Tenax. The amount of capital investment is 51 million euros. Construction started in October with a target operation start-up date of August 2009. Current production capacity of TTE is 3,400 tons per year. This expansion will make it 5,100 tons.

Demand for carbon fiber is growing for civil aircraft and industrial uses. It is expected to grow at a rate of 15% between 2005 and 2010 and its total demand is anticipated to exceed 40,000 tons in 2010. Toho Tenax has decided to expand the production line especially for responding to growing demand in the European market.

Production capacity of carbon fibers of Teijin group is currently 9,100 tons per year, which will be 11,800 tons with the new line scheduled to be expanded in Mishima Plant of Toho Tenax in April 2008, and it will total 13,500 tons with 1,700 tons from the new line of TTE of Germany in 2009.