NPR-Riken Corporation
Notice Regarding Discontinuation of Part of Domestic Foundry Business Production
Domestic production of certain foundry business products will end in September 2027. The related business had sales of 5,061 million yen and operating loss of 725 million yen in the fiscal year ending March 2025, accounting for about 3% of consolidated sales.
Key Figures
- Net Sales: 5,061 million yen (relevant business in fiscal year ending March 2025)
- Operating Income: ▲725 million yen (relevant business in fiscal year ending March 2025)
- Scheduled Production Discontinuation Date: September 2027 (domestic production excluding camshafts)
AI要約
Overview of Production Discontinuation
Riken NPR Corporation has decided to end domestic production of its foundry business products, excluding camshafts, in September 2027. The affected products include steering knuckles and housings, other suspension parts, and hydraulic components. Domestic production of cast camshafts and production at the Indonesian subsidiary will continue. In the fiscal year ending March 2025, sales for the relevant business were 5,061 million yen with an operating loss of 725 million yen, representing approximately 3% of consolidated net sales.
Reasons for Production Discontinuation and Future Outlook
Demand has been declining due to decreases in domestic automobile production volumes, material substitution, and switching to overseas products. Additionally, aging production equipment and rising maintenance costs have worsened profitability. As part of business portfolio reform, production will be discontinued due to the inability to improve profitability. The affected employees are expected to continue employment through transfers within the group. The impact on earnings is currently being examined and will be disclosed promptly if necessary.
