Production stoppages and logistics disruptions caused by natural disasters and equipment failures
First written in FY2022. 2 of 4 entries say "Materialised", first in FY2025-H1. Latest entry: FY2025.
Nitten moved to the "Worse" side of this theme in 2023, 3 years after the typical company in this theme (2020).
The whole theme swung hardest in 2018: 32 of 131 companies on the "Worse" side.
33 other companies' latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「Fire loss - 112」
A fire loss of ¥112 million was recorded in the consolidated statement of income for the current fiscal year in connection with the equipment damage caused by the fire at the Shibetsu Sugar Factory. - FY2025-H1MaterialisedAnnual report
「On 15 October 2024, a fire occurred at our Shibetsu Sugar Factory, damaging part of the beet pulp production equipment. The factory has already resumed operations on a temporary restoration basis, but the time and costs required for full restoration are currently under investigation and are difficult to estimate reasonably.」
Regarding the risk of production stoppages caused by natural disasters, equipment failures and other events, a fire and equipment damage actually occurred at the Shibetsu Sugar Factory. Operations resumed following temporary restoration, but the timing and costs of full restoration remain undetermined. - FY2023WorsenedAnnual report
「There is a risk that large-scale natural disasters such as typhoons and earthquakes, accidents such as fires and power outages, severe winter weather in Hokkaido and other events may disrupt product production and logistics operations. In addition, sugar factories and other facilities contain and operate large-scale equipment, creating a risk that work-related accidents or production stoppages resulting from equipment failures or other unforeseen events could affect the performance of the Group.」
In addition to the existing risks of natural disasters and equipment failures, it explicitly identifies fires, power outages, work-related accidents and production stoppages, broadening the scope of accidents and disruptions covered. - FY2022First statedAnnual report
「There is a risk that large-scale natural disasters such as typhoons and earthquakes, severe winter weather in Hokkaido and other events may disrupt product production and logistics operations. In addition, sugar factories and other facilities contain and operate large-scale equipment, creating a risk of production stoppages resulting from accidents or other unforeseen events caused by equipment failures, which could affect the performance of the Group.」
Separate from past typhoon damage, it discloses for the first time, as a systematic major risk, the general risk that natural disasters and sugar factory equipment failures may lead to production and logistics stoppages.