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25/27 Distribution Network Improvements ? 4
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00:37:11.3
Lastly, regarding Hachioji, we were very fortunate to find a 22,000 tsubo piece of land about 1.5 km away from the Akiruno interchange of the Ken-o Expressway. We have already filed an application to develop the land. This application needs to be changed slightly. We are currently drawing up a blueprint very quickly. We expect to start operations next September. As you know, the Ken-o Expressway will be completed within the next two years. Once it is complete, for example, products produced at the Yamagata Plant can be quickly transported via the Tohoku Expressway and the Ken-o Expressway. Products produced at the Shimodate Plant or the Kanto Plant can be delivered via the Ken-o Expressway. Products produced in the Chubu Plant will be delivered quickly via the Tomei Expressway and the Chuo Expressway. We will have an advantage in supply and procurement. So, regarding supply, about 35% of our areas can be divided. In that sense, since last year, our capacity has in fact been gradually used to the fullest. I was confused about this, actually. While I didn’t know this, we have a large-size sorter, and normally, we loaded four batches. But at the end of the year before last, we were loading seven batches. Finally, last year, we were loading eight batches. Then, loading one batch took two hours. So, it took 16 hours to load eight batches. If this process were started at four o’clock, it would end at 6 o’clock in the following morning. So, we realized that we were operating at full capacity. Anyway, we were looking for land, and were very lucky to find this land. About 9.0 billion yen will be invested. The land will cost us 4.2 billion yen, and the facilities will cost about 5.0 billion yen. Calculating the depreciation on a 5.0 billion yen building, it will be about 280 million yen annually, as the Chairman mentioned earlier. At present, we are leasing the Nishikanto PC and warehouses. These cost about 280 million yen annually. Therefore, we believe that, far from sustaining losses, we will earn profits if we consider two or three possible turnovers thanks to the shortening of our distribution routes. While we will be spending a certain amount of money, we will be making an investment in anticipation of more benefits than just invested money.
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