Production suspension at UK subsidiary and restructuring of European operations
First written in FY2019-Q2. 3 of 6 entries say "Advanced", first in FY2019-Q3. Latest entry: FY2021-Q3.
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- FY2021-Q3AchievedAnnual report
「From the third quarter of the current consolidated fiscal year, NICHIRIN U.K. LTD., formerly a consolidated subsidiary, was excluded from the scope of consolidation because the distribution of residual assets was completed through liquidation proceedings and the company's significance had become immaterial.」
Following the transfer and cessation of production at the UK subsidiary, the distribution of residual assets through liquidation proceedings was completed, and the subsidiary was excluded from the scope of consolidation. - FY2020AdvancedAnnual report
「NICHIRIN U.K. LTD. transferred production to Group companies, beginning with NICHIRIN SPAIN S.L., and ceased production at the UK subsidiary at the end of August.」
The production transfer and cessation at the UK subsidiary were completed, and the Board of Directors subsequently resolved at its meeting on 25 December 2020 to dissolve and liquidate the company. - FY2020-Q3AchievedAnnual report
「In response to the restructuring of automakers within Europe, NICHIRIN U.K. LTD. transferred production to Group companies, beginning with NICHIRIN SPAIN S.L., and ceased production at the UK subsidiary at the end of August.」
Production at the UK subsidiary was transferred to Group companies, and the planned production cessation was implemented at the end of August 2020. - FY2019AdvancedAnnual report
「At a meeting of the Board of Directors held on 9 August 2019, we resolved to cease production at consolidated subsidiary NICHIRIN U.K. LTD.」
In preparation for ceasing production at the UK subsidiary on 30 June 2020, a Board resolution was passed, and ¥143 million in dismissal costs and ¥8 million in impairment losses on property, plant and equipment were recognized. - FY2019-Q3AdvancedAnnual report
「At a meeting of the Board of Directors held on 9 August 2019, we resolved to cease production at consolidated subsidiary NICHIRIN U.K. LTD. We recognized £1,031 thousand (¥143 million) in special retirement allowances during the cumulative third quarter of the current consolidated fiscal year as costs associated with employee dismissals. We also reduced the carrying amounts of equipment and machinery expected to be disposed of to their recoverable amounts and recognized ¥8 million (£63 thousand) in impairment losses on property, plant and equipment during the cumulative third quarter of the current consolidated fiscal year.」
In preparation for ceasing production at the UK subsidiary at the end of June 2020, we recognized ¥143 million in dismissal costs and ¥8 million in impairment losses on property, plant and equipment based on a Board resolution. The European restructuring involving production transfers to the Spanish subsidiary and other companies had reached the stage of recognizing related costs. - FY2019-Q2First statedAnnual report
「As uncertainty increased, including the growing possibility of the UK leaving the EU without an agreement, automakers were restructuring production, including plans by our largest customer, Honda, to end production at its UK and Turkish plants during 2021. In response, and with a view to restructuring the Group's European business while avoiding risks, we decided to transfer NUK's production successively to Group companies, beginning with the Spanish subsidiary, and cease production at NUK in June 2020. Scheduled production cessation date: 30 June 2020 We expect to recognize a provision of £1,000 thousand (¥130 million) in the third quarter of the current consolidated fiscal year for costs associated with employee dismissals. As the equipment is planned for use by Group companies, we have determined that the impact of impairment losses will be immaterial.」
We decided to cease production at UK subsidiary NICHIRIN U.K. LTD. on 30 June 2020 and transfer it successively to the Spanish subsidiary and other companies as part of a restructuring of the European business. The disclosure cites uncertainty over the UK's exit from the EU, the planned end of production at Honda's UK and Turkish plants during 2021, and automakers' production restructuring as the background.