Raw material supply disruptions at Nichino India due to China’s environmental regulatory issues
First written in FY2018. 2 of 4 entries say "Restated". Latest entry: FY2025.
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- FY2025RestatedAnnual report
「The Group is working to reduce risk by diversifying its sources of raw-material procurement, but restrictions on procurement caused by tighter regulations in supplier countries, operating accidents at suppliers or other factors could affect the Group's performance.」
The Company reaffirms the procurement structure's high dependence on China and its risk-reduction measures through supplier diversification. - FY2022RestatedAnnual report
「As a result of efforts to reduce costs, some of the pesticide active ingredients, raw materials and auxiliary materials used in the Group's businesses have become concentrated in specific regions and suppliers, and the Group's dependence on China as a proportion of total annual purchases remains high. The Group is working to reduce this risk by diversifying its sources of raw-material procurement, but restrictions on procurement caused by tighter regulations in supplier countries, operating accidents at suppliers or other factors could affect the Group's performance.」
The Company reaffirms the procurement structure's high dependence on China and its risk-reduction measures through supplier diversification. - FY2021ReframedAnnual report
「As a result of efforts to reduce costs, some of the pesticide active ingredients, raw materials and auxiliary materials used in the Group's businesses have become concentrated in specific regions and suppliers, and the Group's dependence on China as a proportion of total annual purchases remains high. The Group is working to reduce this risk by diversifying its sources of raw-material procurement, but restrictions on procurement caused by tighter regulations in supplier countries, operating accidents at suppliers or other factors could affect the Group's performance.」
The explanation has expanded from individual raw-material supply disruptions caused by China's environmental regulations to the structural procurement risks of concentration in specific regions and suppliers and high dependence on China, with supplier diversification presented as a countermeasure. - FY2018First statedAnnual report
「Nichino India Pvt. Ltd.'s overseas pesticide sales struggled as a result of repeated raw-material shortages, delivery delays and price increases caused by China's environmental regulatory issues.」
The Company explains that raw-material shortages, delivery delays and price increases caused by China's environmental regulatory issues actually occurred and led to sluggish performance at Nichino India.