Higher manufacturing costs due to wage increases at the Korean production base
First written in FY2017-Q3. 2 of 2 entries say "Materialised", first in FY2017-Q3. Latest entry: FY2017.
atect moved to the "Worse" side of this theme in 2017, the same year as the typical company in this theme.
1 other company's latest entry also says "Materialised".
- FY2017MaterialisedAnnual report
「The impact of the stronger yen in the first half and the accelerated entry of a major SAMSUNG production facility near Pyeongtaek, the company's Korean production base, together with substantial wage increases implemented in December 2016 to retain employees, caused net sales and operating profit to fall short of the initial plan.」
Wage increases continued following the accelerated entry of a SAMSUNG production facility near Pyeongtaek, and were reflected in results as a factor behind net sales and operating profit falling short of the initial plan. - FY2017-Q3MaterialisedAnnual report
「The entry of a major SAMSUNG production facility near Pyeongtaek, the company's Korean production base, was brought forward from the original plan. The company implemented substantial wage increases to retain employees and, despite the trend toward a stronger yen, changed Japanese production from the planned reduction to full-capacity operations to meet robust demand, postponing the relocation to Shiga. As a result, manufacturing labor costs increased.」
Against the backdrop of the accelerated entry of a SAMSUNG production facility near Pyeongtaek, substantial wage increases were implemented to retain employees, resulting in an actual increase in manufacturing labor costs.