FY2020-Q3First statedAnnual report
「The Company is steadily implementing its business strategy in its core areas, as set out in its management policy, while pursuing selective concentration. As part of this effort, the Company decided that focusing on its core areas and combining the operations of Nitta Casings Inc. and Nitta Casings (Canada) Inc. with those of Viscofan USA Inc. and Viscofan Canada Inc., which possess expertise in the casing business, would contribute to the medium- and long-term enhancement of both companies’ corporate value, and agreed to the share transfer. The Company had established the joint venture Beijing Qiushi Collagen Casing Co., Ltd. with Beijing Qiushi Agricultural Development Co., Ltd. to expand its collagen casing business in the Chinese market. However, because the two companies had significant differences regarding their future business policies, the Company decided to transfer Package Hongkong Limited, the holding company, to Casing Hongkong Limited.」
In North America, Nitta Casings Inc. and Nitta Casings (Canada) Inc. were transferred to Viscofan’s North American entities. In China, shares related to Package Hongkong Limited and Beijing Qiushi Collagen Casing Co., Ltd. were transferred. The North American transfer was intended to enhance medium- and long-term corporate value by combining with companies possessing casing business expertise, while the Chinese transfer resulted from differences with the joint venture partner regarding future business policy.