Strengthening the production system and reducing costs for additives used in lithium-ion secondary batteries
First written in FY2020. 3 of 5 entries say "Worsened", first in FY2023-Q3. Latest entry: FY2025.
No other company in this theme has enough history to compare yet.
- FY2025WorsenedAnnual report
「During the consolidated fiscal year, among the increased-production facilities for additives used in lithium-ion secondary batteries in the high-purity chemicals business, the Company decided to treat assets that had been expected to be repurposed as idle assets because they were not expected to be used in the foreseeable future. It reduced their carrying amounts to recoverable amounts and recognized the reduction as an impairment loss under extraordinary losses.」
For the business that had identified establishing an additive production system and reducing costs as priorities, some of the production expansion equipment expected to be repurposed is not expected to be used for the time being, and an impairment loss of ¥190 million has been recognized. - FY2024-Q3WorsenedAnnual report
「Following consideration of the current market environment and production conditions for existing production facilities for additives used in lithium-ion secondary batteries in the High-Purity Chemicals segment, the Company determined that the prospects for their operation in the foreseeable future had declined substantially and decided to treat them as idle assets. During the cumulative third quarter of the consolidated fiscal year, it recognized ¥426 million as an impairment loss under extraordinary losses.」
Although the company had identified improving price competitiveness and reducing costs for additives as priorities, the near-term operating outlook for existing production equipment declined substantially, and it recognized an impairment loss of ¥426 million on idle assets. - FY2023-Q3WorsenedAnnual report
「For additives used in lithium-ion rechargeable batteries in the High-Purity Chemicals segment, the company reviewed its future business plan and determined that the likelihood of future use of manufacturing equipment held for the purpose of increasing production had declined. Accordingly, excluding assets that can be repurposed, it reduced the carrying amount to the recoverable amount and recognized the reduction as an impairment loss under extraordinary losses.」
Although the company had identified establishing a production system and reducing costs for additives as priorities, it reviewed the business plan for equipment intended to increase production and recognized an impairment loss due to the decline in its likelihood of future use. - FY2021RestatedAnnual report
「As competition on pricing for battery materials intensifies, we will continue to make cost reduction a key priority and work to improve competitiveness.」
In light of price competition and demands for cost reductions in battery materials, the company continues its policy of making cost reduction a key priority. - FY2020First statedAnnual report
「For additives used in lithium-ion rechargeable batteries, the company is required to establish a production system aligned with demand and improve price competitiveness, making cost reduction a key priority.」
Separately from expanding additive production facilities, the company explicitly identifies establishing a production system aligned with demand, improving price competitiveness and reducing costs as key priorities.