1

Market Structure and Technology Trends of Black Ink for Ink Jet Printer

Ken KanekoR & D Planning DepartmentR & D Strategy DivisionTokai Carbon Co. Ltd.

7 July, 2014

44%

29%

13%

8%4%2%

Industrial FurnaceIndustrial Furnace(4.2billion yen)(4.2billion yen)

Friction Friction MaterialsMaterials

(8.1billion yen)(8.1billion yen)

Fine CarbonFine Carbon(12.6billion yen)(12.6billion yen)

Carbon BlackCarbon Black Fine CarbonFine Carbon Friction MaterialsFriction MaterialsIndustrial FurnaceIndustrial Furnace&Related Products&Related Products

ForSolar cell industry,Semi-conductor industry

ForTire industry,

Rubber industry

ForMotorcycle, Construction

Machinery and Automobilesindustries

ForFine Ceramic industry,

Glass industry

FY 2013 FY 2013 (Jan.1(Jan.1--Dec.31,2013)Dec.31,2013)

Net SalesNet Sales 100100.9 .9 billion yenbillion yen

Operating Income ratioOperating Income ratio 1.61.6%%

FY 2013 FY 2013 (Jan.1(Jan.1--Dec.31,2013)Dec.31,2013)

Net SalesNet Sales 100100.9 .9 billion yenbillion yen

Operating Income ratioOperating Income ratio 1.61.6%%

FY2013Sales byProduct

2

Graphite ElectrodeGraphite Electrode

For Steel Industry

OtherOther(1.7billion (1.7billion yen)yen)

©Copyright, TOKAI CARBON Co., Ltd All Right Reserved.

Graphite ElectrodeGraphite Electrode(29.5billion yen)(29.5billion yen)

Carbon BlackCarbon Black(44.9billion yen)(44.9billion yen)

Fig. 1

Fig. 2

Strong Business Structure with Five Core Business

MWI

Svensk Specialgrafit

Tokai Carbon Italy

Thai Tokai Carbon Product

Tokai Carbon Korea

Shanghai Tokai Konetsu

SGL Tokai Carbon Shanghai

Tokai Carbon(Dalian)

Carbon Black

Graphite Electrodes

Fine Carbon

SiC Heating Elements

SGL Tokai Process Technology

Tokai Carbon EuropeTokai Carbon Deutschland

TOKAI ERFTCARBON

Tokai Carbon Japan

Tokai Carbon TianjinTokai Carbon USA

Tokai Carbon Electrode Sales

11

Tokai Carbon UK

©Copyright, TOKAI CARBON Co., Ltd All Right Reserved.

Friction Materials

Tokai Carbon(Suzhou)

Tokai Konetsu (Suzhou)

Cancarb

Fig. 3

Overseas Group Companies and Affiliates

To expand CB business,         Tokai Carbon started to develop aqueous Carbon Black dispersion for Ink Jet printer 20 years ago.  

R&D : Fuji Research LaboratoryProduction : Chita plant

Fig. 4 Fuji Research Laboratory

Fig. 5 Chita Plant

The market structure of an ink‐jet is special. Its market structure and technology trends of Black Ink will be discussed in this presentation.  

Aqueous CB Dispersion

5

Letterpress (Conventional) Printing

Developed by Johannes Gutenberg of Mainz in 1455Expanded Printing Enterprise by Aldo Manuzio of Venice

Published Collected letters of Cicero in 1475Published one work of ancient Greece and the Roman Empire after another

Fig. 6Logo mark of Aldine Press

From HP of National Library of Scotland

Letterpress printing became the most important technology 

from the medieval times of Europe to modern times.

6

Computer  is changing The World

Conventional  game  ⇒ TV Game  Analog Camera  ⇒ Digital Camera

Photo by Silver Halide Tech.  ⇒ Photo by Ink Jet Tech.Letter / Facsimile  ⇒ Internet

IBM released program stored computer, IBM701 for business use in 1952.After then, a highly‐efficientizing and a downsizing of computer have progressed abruptly.

Analog Digital

Conventional Printing is also changing to Ink Jet Printing now

7

What is Ink Jet Technology

Ink Jet Printer doesn’t work without Computer.

The mechanism of an IJ printer is simple. 1.  Print Head           2.  Sheet Feeder       3.  Circuit Board

4.  Power Supply            and  ( 5.  Computer )

The most important part is Print HeadWhen required,                                                 

a required quantity of ink is jetted          from its nozzles 

From HP of Canon

Fig. 7 Principle of Jetting

Serial Head and Line HeadSerial Head and Line Head

Line HeadHead is fixedLower ResolutionHigher Printing SpeedNeed a lot of HeadsReliability of Head is needed

Serial HeadHead moves by using wireHigher ResolutionLower Printing SpeedEasy to overcome Head Defects

Fig. 8 Fig. 9

9

The feature of ink‐jet technology Digital Printing Variable Data, On demand printing

Bill (Visa etc.), Form (Deutsche Bank etc.)

Non‐impact Printing Few restrictions of surface formIrregular drawing board, Cloth, Sphere

Small Print Head            Easy to speed up, Easy to colorize Web press

Super‐thin nozzle           Easy to print highly minutePhoto

Functional Inks          Aqueous, Non‐aqueous, UV Curable, etc.Graphics, Drawing Electronic Circuit, 3D

IJ Technology is expanding to many directions now.Tokai Carbon is focusing only aqueous Carbon Black now.

Global Printing market

Desk top

Copier

Personal

Web press

Fig. 10 Global Printing Market : Conventional Printing]= Forme Printing= Letterpress, Offset,   Gravure etc.

: Digital  Printing]= Formeless Printing= Laser, Ink Jet

Global Printing Market  740 B$

Personal Printer 20 B$Desktop Printer  50 B$Copier                   50 B$Web Press              2 B$

Fig. 11

11

Ink Jet Printer will replace Laser Printer gradually Mechanism of Ink Jet Printer is more simple compare to that of Laser Printer.  

25 years ago Current 10 years later

Personal Laser Ink Jet Ink Jet

Desktop Laser Laser Ink Jet

Copier Laser Laser Laser/Ink Jet

Table 3

PersonalInk Jet

DesktopLaser

CopierLaser

Personal, Desktop & Copier

12

Conventional Ink JetPrinting Giesecke & Dervient unitedprintMachine Heidelberg

HP, Canon, EpsonBrother etc 

Ink Sun ChemicalPaper International Paper

Example of Market Participants ofConventional Printing & Ink Jet Printing

In the case of Ink Jet, Printer Manufacturer supplies 

not only Machine (Printer) but also Ink and Paper.  Of course, Printer manufacturer is buying

Pigment Dispersion from Dispersion Manufacturers and Paper from Paper Manufacturers

Table 3

They know consumables business is profitable.

HeidelbergSpeedmaster XL 75

Conventional Printer

Hewlett PackardT-300 Inkjet Web Press

Ricoh-IBMInfoPrint 5000-VP

Digital Printer

Web Press & Sheet‐fed Press

Mass Printing Small Quantity Printing

In the case of Digital Printing, one book can be easily prepared. 

The biggest problem of the publishing trade is that it is necessary to discard the bookwhen it does not sell.

14

Offset NEWS paper Electrophotography Ink Jet

OD Value > 1.7*1 1.2 1.5*2 1.4*2

Volume of Black ink occupies 60 % of Total ink volumes.So, quality of Black ink is very important.

Especially, blackness is the most important.The degree of blackness is expressed as the measure of optical density(OD).

*1 : Coated paper,  *2 : Plain paper

Quality of Black ink is the most important

OD value of printed image is requested over 1.5 for plain paperfor Ink jet printing 

to replace Electrophotography printing in the market.  

15

New Aqueous Carbon Black

Latest Carbon Black Dispersion developed at Fuji Research Lab. of Tokai Carbon

shows good performance of OD value over 1.5

New Aqueous Carbon Black of Tokai is getting 

an excellent evaluation resultsfrom customers.