Achilles Corporation
Notice of Production Termination at Chinese Subsidiary
Resolution to terminate production at a Chinese subsidiary. Production of vehicle materials business will be discontinued and production sites consolidated to strengthen functionality globally. Impact on the fiscal year ending March 2027 is expected to be minor at this time.
Key Figures
- Amount of costs and losses such as employee compensation: not stated (Unknown)
- Impairment loss on fixed assets: 3,256 million yen recorded as an extraordinary loss
- Establishment date: May 15, 2019 (local subsidiary)
AI要約
Overview of Business Restructuring
The Board of Directors resolved to terminate production at consolidated Chinese subsidiary Achilles (Foshan) New Materials Co., Ltd. Established to expand the vehicle materials business, the subsidiary faced a severe operating environment due to the impact of COVID-19 and changes in the local market. Production will be discontinued and manufacturing sites consolidated to Achilles in Japan and a joint venture in Jiangsu Province. Going forward, the company plans to leverage functional strengths to expand globally in the mobility sector.
Outlook and Impact
Costs and losses such as employee compensation associated with the production termination are under review, but the impact on consolidated full-year earnings forecast for the fiscal year ending March 2027 is expected to be minor at this time. If there are matters that should be disclosed in the future, they will be announced promptly.
Achilles Corporation
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