Country risk associated with the expansion of overseas production bases
First written in FY2016. 3 of 7 entries say "Mitigated", first in FY2024. Latest entry: FY2025.
Sanyo Chemical Industries moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 27 of 56 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Our group has production and sales sites in the United States, Thailand and South Korea, and sales sites in China and Taiwan,」
Following the withdrawal from the production business in China and the transfer of the subsidiary's equity interest, we describe our overseas sites separately as production and sales sites and sales sites, indicating reduced exposure to country risk associated with production sites in China. - FY2025-H1MitigatedAnnual report
「Equity Transfer Agreement Contracting company: SDPグローバル株式会社 Transferee: 南通江天化学股份有限公司 Subsidiary to be transferred: 三大雅精細化学品(南通)有限公司 Scheduled date of equity transfer: December 2024 (subject to completion of the necessary procedures following execution of the agreement) Agreement date: 27 September 2024」
We have entered into an equity transfer agreement for 三大雅精細化学品 in Nantong, China, and are proceeding with specific steps to reduce exposure to legal and regulatory changes and political disorder associated with production sites in China. - FY2024MitigatedAnnual report
「Announced withdrawal from the superabsorbent polymer business. Decided to dissolve 三洋化成精細化学品(南通)有限公司.」
We have decided to withdraw from the production business in Nantong, China, and dissolve the subsidiary, indicating a move to reduce exposure to legal and regulatory changes and political disorder associated with production sites in China. - FY2023WorsenedAnnual report
「Our group is expanding its overseas operations by establishing a production site in South Korea, following the United States, Thailand, China and Malaysia.」
We have added South Korea to the countries with overseas production sites and expanded our disclosure of exposure to changes in laws and regulations and political disorder associated with globalization. The risk associated with the relocation request in Nantong, China, also continues. - FY2021WorsenedAnnual report
「In China, chemical companies, including our group's 三大雅精細化学品（南通）有限公司 and 三洋化成精細化学品（南通）有限公司, which are located in the Nantong Economic Development Zone Chemical Industrial Park, have been asked to relocate pursuant to laws including the Yangtze River Protection Law of the People's Republic of China. Depending on the relocation requirements, this could result in opportunity losses due to temporary operating stoppages and substantial plant relocation costs.」
In addition to the existing legal and political risks, we specifically describe requests for chemical companies, including 2 companies in Nantong, China, to relocate, as well as the possibility of operating stoppages and substantial relocation costs. - FY2018RestatedAnnual report
「Our group is expanding its overseas operations by establishing production sites in Malaysia, following the United States, Thailand and China. Such progress in globalization may adversely affect the business performance and financial condition of our group through (1) unexpected changes in laws or regulations and (2) social disorder caused by political factors in the countries where we operate.」
We continue to disclose the risks of changes in laws and regulations and political disorder associated with the expansion of overseas production sites. - FY2016First statedAnnual report
「Our group is expanding its overseas operations by establishing production sites in Malaysia, following the United States, Thailand and China. Such progress in globalization may adversely affect the business performance and financial condition of our group through (1) unexpected changes in laws or regulations and (2) social disorder caused by political factors in the countries where we operate.」
Against a backdrop of establishing a production site in Malaysia following the United States, Thailand and China, we identify changes in laws and regulations and political disorder as risks.