Restructuring of Production Sites Including Workforce Reductions

Overview of Factory Closures and Rationalization

Today, the board of directors resolved to commence procedures to close three overseas production sites: the Poland plant, the Slovakia plant, and the Mountain City plant. As part of measures to strengthen cost competitiveness under the Medium-Term Management Plan 2025–2029, the Irwin plant under TN Tennessee in the United States was already closed in February 2027. In connection with the closure of these three sites, the company will proceed with workforce rationalization measures such as employee reassignment and early retirement incentives, and plans to transfer products that were manufactured at these factories mainly to the India plant.

Financial Impact and Future Outlook

Due to the factory closures, the company expects to record impairment of fixed assets, equipment transfer costs, retirement allowances and other expenses. The impact on consolidated results for the fiscal year ending December 2026, including these items, is currently being reviewed and will be disclosed promptly once amounts are determined. The scope of impact will be carefully assessed, aiming to reduce fixed costs as part of future profitability improvements.