Implementation of Additional Measures for the Structural Reform of the Inorganic Chemicals Business
ISHIHARA SANGYO KAISHA,LTD. and 富士チタン工業 (the Company's consolidated subsidiary)
All employees of ISHIHARA SANGYO KAISHA,LTD.; the sulfate-process titanium dioxide plant at the Company's Yokkaichi Plant; and titanium dioxide and related sulfate-process products at 富士チタン工業's Kobe Plant
Changes in demand structures and intensifying competition, among other factors. The Company determined that growth, profitability and cash-generation potential could not be expected from 富士チタン工業's titanium dioxide business, as earnings performance has remained weak in recent years.
An impairment loss of ¥2.5 billion on fixed assets at the Kobe Plant has been recognized as an extraordinary loss in the first quarter of the fiscal year ending March 2027. Additional retirement payments and other costs associated with the voluntary early retirement program, equipment removal costs and employee treatment-related costs are scheduled or expected to be recognized as extraordinary losses, although the amounts have not yet been determined.
First quarter of the fiscal year ending March 2027 (¥2.5 billion impairment loss); fiscal year ending March 2027 (additional retirement payments and other costs associated with the voluntary early retirement program); and the current consolidated fiscal year and thereafter (equipment removal costs and employee treatment-related costs)
The impact of the voluntary early retirement program on financial results will be disclosed promptly once the number of applicants and other details have been finalized. Regardless of whether the businesses other than the titanium dioxide business continue, their impact on consolidated results will be immaterial. Any revision to the earnings forecast is Not disclosed.
Company response
富士チタン工業 is expected to cease operations of the sulfate-process titanium dioxide business at its Kobe Plant during fiscal 2026. The sulfate-process titanium dioxide plant at the Company's Yokkaichi Plant is scheduled to cease operations in March 2027.
Applications for the voluntary early retirement incentive program will be accepted from 26 October to 10 November 2026, with retirement dates set for 31 January or 31 March 2027. 富士チタン工業's titanium dioxide business is expected to cease operations during fiscal 2026. For businesses other than the titanium dioxide business, the Company will consider their future operating structure in light of business viability and pursue its growth strategy, with functional materials positioned as a future growth driver.
The impact of the voluntary early retirement program on financial results will be disclosed promptly once the number of applicants and other details have been finalized. Equipment removal costs and employee treatment-related costs will be disclosed promptly once their assessment has been completed.
| Item | Details |
|---|---|
| Event name | Implementation of Additional Measures for the Structural Reform of the Inorganic Chemicals Business |
| Date of occurrence | 7 August 2026 (date of board resolution) |
| Subject Entity | ISHIHARA SANGYO KAISHA,LTD. and 富士チタン工業 (the Company's consolidated subsidiary) |
| Target Locations / Products | All employees of ISHIHARA SANGYO KAISHA,LTD.; the sulfate-process titanium dioxide plant at the Company's Yokkaichi Plant; and titanium dioxide and related sulfate-process products at 富士チタン工業's Kobe Plant |
| Cause | Changes in demand structures and intensifying competition, among other factors. The Company determined that growth, profitability and cash-generation potential could not be expected from 富士チタン工業's titanium dioxide business, as earnings performance has remained weak in recent years. |
| Amount of Impact on Business Performance | An impairment loss of ¥2.5 billion on fixed assets at the Kobe Plant has been recognized as an extraordinary loss in the first quarter of the fiscal year ending March 2027. Additional retirement payments and other costs associated with the voluntary early retirement program, equipment removal costs and employee treatment-related costs are scheduled or expected to be recognized as extraordinary losses, although the amounts have not yet been determined. |
| Accounting period in which recognized | First quarter of the fiscal year ending March 2027 (¥2.5 billion impairment loss); fiscal year ending March 2027 (additional retirement payments and other costs associated with the voluntary early retirement program); and the current consolidated fiscal year and thereafter (equipment removal costs and employee treatment-related costs) |
| Impact on Earnings Forecast | The impact of the voluntary early retirement program on financial results will be disclosed promptly once the number of applicants and other details have been finalized. Regardless of whether the businesses other than the titanium dioxide business continue, their impact on consolidated results will be immaterial. Any revision to the earnings forecast is Not disclosed. |
| Suspended operations | 富士チタン工業 is expected to cease operations of the sulfate-process titanium dioxide business at its Kobe Plant during fiscal 2026. The sulfate-process titanium dioxide plant at the Company's Yokkaichi Plant is scheduled to cease operations in March 2027. |
| Outlook | Applications for the voluntary early retirement incentive program will be accepted from 26 October to 10 November 2026, with retirement dates set for 31 January or 31 March 2027. 富士チタン工業's titanium dioxide business is expected to cease operations during fiscal 2026. For businesses other than the titanium dioxide business, the Company will consider their future operating structure in light of business viability and pursue its growth strategy, with functional materials positioned as a future growth driver. |
| Planned follow-up disclosure | The impact of the voluntary early retirement program on financial results will be disclosed promptly once the number of applicants and other details have been finalized. Equipment removal costs and employee treatment-related costs will be disclosed promptly once their assessment has been completed. |
Items this document does not state (14)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The measures are intended to enhance corporate value over the medium to long term and improve the profitability of the inorganic chemicals business by responding to changes in demand structures and intensifying competition. With respect to 富士チタン工業's titanium dioxide business, the Company determined that growth, profitability and cash-generation potential could not be expected, as earnings performance has remained weak in recent years.