End of Production at 北海道糖業's Honbetsu Sugar Refinery and Reorganization of Beet Sugar Production
First written in FY2022-Q2. 2 of 4 entries say "Advanced", first in FY2023-Q3. Latest entry: FY2024.
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- FY2024AdvancedAnnual report
「These were expenses for removing production equipment and other costs at Hokkaido Sugar Co., Ltd.'s Honbetsu Sugar Refinery.」
Following the policy of ending production and idling the Honbetsu Sugar Refinery, the company recorded ¥948 million in expenses for removing production equipment and other costs as a loss on disposal of property, plant and equipment during the fiscal year. - FY2023WorsenedAnnual report
「For the buildings, structures, machinery and equipment and other assets at the Honbetsu Sugar Refinery in Honbetsu, Nakagawa District, Hokkaido, we recognized an impairment loss for the asset group to be removed because, following the announcement in August 2021 that production at the Honbetsu Sugar Refinery would end, changes arose in the business circumstances from the original plan and the assets will be removed or placed in idle status after production ends this fiscal year. For the buildings, structures, machinery and equipment and other assets at the Kitami Sugar Refinery and other sites in Kitami, Hokkaido, and elsewhere, we recognized an impairment loss for the relevant asset group because, after considering future production and sales volumes in light of the policy announced by the Ministry of Agriculture, Forestry and Fisheries in December 2022 to adjust the eligible quantity for domestic sugar production subsidies for beet sugar, we expect the business environment for the sugar business to deteriorate.」
In addition to the removal and idling associated with the end of production at the Honbetsu Sugar Refinery, impairment losses also arose at the Kitami Sugar Refinery and other sites due to revised production and sales volumes and the expected deterioration in the business environment, expanding the impact of the beet sugar production reorganization. - FY2023-Q3AdvancedAnnual report
「The quarterly net loss attributable to owners of the parent was ¥269 million, due to impairment losses on property, plant and equipment resulting from the loss of expected recovery of investments as assets at Hokkaido Sugar Co., Ltd.'s Honbetsu Sugar Refinery became idle, as well as the reversal of deferred tax assets and other factors.」
Following the policy of ending production at the Honbetsu Sugar Refinery, the idling of assets and loss of expected investment recovery were reflected in the results, with an impairment loss of ¥472 million on property, plant and equipment recorded. - FY2022-Q2First statedAnnual report
「After comprehensively considering the recent business environment and the aging of production facilities, we concluded that it would be difficult to maintain all 3 production sites and decided to end production at the Honbetsu Sugar Refinery in March 2023. Production of beet sugar and other products will be divided between Hokkaido Sugar's Kitami Sugar Refinery and Nippon Beet Sugar Manufacturing's Memuro Sugar Refinery, while Hokkaido Sugar is expected to handle sales.」
Hokkaido Sugar disclosed for the first time its policy of ending production at the Honbetsu Sugar Refinery in March 2023, one of its 3 sites in Donan, Kitami and Honbetsu, and dividing production between the Kitami Sugar Refinery and Nippon Beet Sugar Manufacturing's Memuro Sugar Refinery.