Withdrawal from the Food Business and Revision to GCI Group Medium-Term Management Policy 2030
Gun Ei Chemical Industry Co., Ltd.
Food business (manufacturing and sales of high-fructose corn syrup, glucose and starch syrup)
The environment surrounding the food business has deteriorated rapidly and structurally, and negative underlying cash flow has continued. The Company determined that a fundamental improvement in profitability in the food business would be difficult.
¥384 million (withdrawal-related expenses, recorded as a special loss)
The consolidated accounting period for the first quarter of the fiscal year ending March 2027 (1 April 2026 to 30 June 2026)
For the impact on results for the fiscal year ending March 2027, please refer to the notice released today, “Notice Concerning the Publication of Consolidated Earnings Forecast and Dividend Forecast (Including the 80th Anniversary Commemorative Dividend).”
Company response
Manufacturing for the food business will be stopped at the end of December 2026 (scheduled), and sales will end at the end of January 2027 (scheduled).
Employees engaged in the food business will be reassigned to the chemicals business and other operations, taking their suitability into consideration, and their employment will be maintained. Management resources that had been scheduled to be allocated to the food business will be reallocated to growth areas, including the electronic materials field, with the aim of improving profitability and corporate value across the Group.
| Item | Details |
|---|---|
| Event name | Withdrawal from the Food Business and Revision to GCI Group Medium-Term Management Policy 2030 |
| Date of occurrence | 30 July 2026 (date of Board of Directors resolution) |
| Subject Entity | Gun Ei Chemical Industry Co., Ltd. |
| Target Locations / Products | Food business (manufacturing and sales of high-fructose corn syrup, glucose and starch syrup) |
| Cause | The environment surrounding the food business has deteriorated rapidly and structurally, and negative underlying cash flow has continued. The Company determined that a fundamental improvement in profitability in the food business would be difficult. |
| Amount of Impact on Business Performance | ¥384 million (withdrawal-related expenses, recorded as a special loss) |
| Accounting period in which recognized | The consolidated accounting period for the first quarter of the fiscal year ending March 2027 (1 April 2026 to 30 June 2026) |
| Impact on Earnings Forecast | For the impact on results for the fiscal year ending March 2027, please refer to the notice released today, “Notice Concerning the Publication of Consolidated Earnings Forecast and Dividend Forecast (Including the 80th Anniversary Commemorative Dividend).” |
| Suspended operations | Manufacturing for the food business will be stopped at the end of December 2026 (scheduled), and sales will end at the end of January 2027 (scheduled). |
| Outlook | Employees engaged in the food business will be reassigned to the chemicals business and other operations, taking their suitability into consideration, and their employment will be maintained. Management resources that had been scheduled to be allocated to the food business will be reallocated to growth areas, including the electronic materials field, with the aim of improving profitability and corporate value across the Group. |
Items this document does not state (15)
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 environment surrounding the food business has deteriorated rapidly and structurally, and negative underlying cash flow has continued. The Company states that a fundamental improvement in profitability would be difficult, and that it will avoid the risk of cash outflows from continuing the business and concentrate management resources on growth areas such as the chemicals business and electronic materials.