The ability to provide solutions that respond to market needs and cultivate new markets depends on a global perspective as well as a global network. The Teijin Group scores well on both counts. Currently, we have nine major research sites in Japan and seven overseas employing a total of more than 1,600 researchers.

Recognizing that ongoing, effective R&D is essential to sustained growth, the companies of the Teijin Group strive to ensure the efficient, forward-looking allocation of investment. Efforts are overseen by the Chief Technology Officer (CTO) with the aim of centralizing all aspects of the Group's R&D program, including basic research, and strengthening cooperation. In fiscal 2009, ended March 31, 2010, R&D expenses amounted to ¥33.4 billion.

In an environment characterized by change and rapid technological advances, sustaining growth depends on our ability to continue innovating, as well as our ability to cultivate the human resources capable of such innovation. To facilitate the creation of new businesses, we are taking steps to reinforce our R&D capabilities. We are also concentrating on fostering the development of personnel who will spearhead R&D efforts going forward.

Establishment of new Technology Innovation Center

With the aim of conducting functional improvement in R&D, we established the Teijin Technology Innovation Center (TTIC) at the Iwakuni Factory in Iwakuni, Japan on April 2008. This new center organizes not only an existing Innovation Research Institute, which plays a role of corporate researches, but also research teams for project promotion and a newly introduced Open Laboratory, which allows to develop research with some universities and companies, and will serve a fundamental role of advanced new technologies and products that will chart a course for the Teijin Group's future.

Launch of Teijin Techno College

Recognizing the need to ensure that the expertise, skills and technologies of veteran employees are passed on to successive generations and to provide proper training for new R&D personnel, we established Teijin Techno College. The college opened in April 2007. Training programs at Teijin Techno College focus on one-on-one skill and technology training, which is supported by complementary group training sessions. The teaching staff of the college consists of former employees who have retired from managementlevel positions. The college is expected to provide training for approximately 80 individuals annually to be tomorrow's frontline leaders.