Withdrawal from the Lawter New Zealand business
LAWTER (N.Z.) Limited (the company's consolidated subsidiary, incorporated in New Zealand)
The site in Mount Maunganui, New Zealand. Tall fatty acids, tall rosin and turpentine derivatives (fragrance ingredients)
Intensifying price competition in export markets such as Asia, higher manufacturing costs in New Zealand and instability in raw material procurement. The company judged that a recovery in performance would be difficult because management improvement measures implemented over the past several years had not produced sufficient results and the difficult business environment was expected to continue.
The company expects to record an extraordinary loss of approximately ¥2.8 billion, including impairment losses on fixed assets and other items and temporary costs associated with the withdrawal from the business.
Third quarter of the fiscal year ending March 2027
Company response
Production activities at LAWTER (N.Z.) Limited are scheduled to cease on 30 June 2027. The site will then be used temporarily as a logistics centre, with the plant scheduled to close in May 2028.
The company will continue to examine the impact in greater detail and will promptly disclose any matters that should be made public. The approximately ¥3.7 billion gain on the sale of shares in SunPine AB, disclosed on 10 July 2026, is also scheduled to be recorded in the third quarter of the fiscal year ending March 2027.
| Item | Details |
|---|---|
| Event name | Withdrawal from the Lawter New Zealand business |
| Date of occurrence | 7 October 2026 (the date on which the Board of Directors resolved the withdrawal) |
| Subject Entity | LAWTER (N.Z.) Limited (the company's consolidated subsidiary, incorporated in New Zealand) |
| Target Locations / Products | The site in Mount Maunganui, New Zealand. Tall fatty acids, tall rosin and turpentine derivatives (fragrance ingredients) |
| Cause | Intensifying price competition in export markets such as Asia, higher manufacturing costs in New Zealand and instability in raw material procurement. The company judged that a recovery in performance would be difficult because management improvement measures implemented over the past several years had not produced sufficient results and the difficult business environment was expected to continue. |
| Amount of Impact on Business Performance | The company expects to record an extraordinary loss of approximately ¥2.8 billion, including impairment losses on fixed assets and other items and temporary costs associated with the withdrawal from the business. |
| Accounting period in which recognized | Third quarter of the fiscal year ending March 2027 |
| Suspended operations | Production activities at LAWTER (N.Z.) Limited are scheduled to cease on 30 June 2027. The site will then be used temporarily as a logistics centre, with the plant scheduled to close in May 2028. |
| Outlook | The company will continue to examine the impact in greater detail and will promptly disclose any matters that should be made public. The approximately ¥3.7 billion gain on the sale of shares in SunPine AB, disclosed on 10 July 2026, is also scheduled to be recorded in the third quarter of the fiscal year ending March 2027. |
| Planned follow-up disclosure | The company will continue to examine the impact in greater detail and will promptly disclose any matters that should be made public. |
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 company made this decision because performance has remained weak due to intensifying price competition in export markets such as Asia, rising manufacturing costs in New Zealand and instability in raw material procurement. Management improvement measures implemented over the past several years have not produced sufficient results, and the company judged that, with the difficult business environment expected to continue, a recovery in performance would be difficult.