Discontinuation of Production for Part of the Domestic Metal-Forming Products Business
NPR-RIKEN CORPORATION (the filing company)
Products other than camshafts in the domestic metal-forming products business, including steering knuckles and housings, other suspension components, and hydraulic components
Demand has declined due to lower domestic automobile production, the substitution of aluminum for cast iron, and a shift to overseas products. The business has remained unprofitable because of lower production efficiency and higher repair costs resulting from aging production facilities, as well as soaring material and other costs, and profitability is not expected to improve going forward.
The impact on the consolidated results of operations of the Company and its group is currently under review. If any matter requiring disclosure arises, it will be disclosed promptly.
Company response
Production of products other than camshafts in the domestic metal-forming products business is scheduled to end by September 2027.
Domestic production of the products concerned is scheduled to end by September 2027. The employees engaged in the business are expected to remain employed through reassignment within the Group and other measures. The impact on consolidated results of operations and other matters is currently under review, and any matter requiring disclosure will be disclosed promptly.
If any matter requiring disclosure arises, it will be disclosed promptly.
| Item | Details |
|---|---|
| Event name | Discontinuation of Production for Part of the Domestic Metal-Forming Products Business |
| Date of occurrence | 13 April 2026 (the date on which the Board of Directors resolved to discontinue production) |
| Subject Entity | NPR-RIKEN CORPORATION (the filing company) |
| Target Locations / Products | Products other than camshafts in the domestic metal-forming products business, including steering knuckles and housings, other suspension components, and hydraulic components |
| Cause | Demand has declined due to lower domestic automobile production, the substitution of aluminum for cast iron, and a shift to overseas products. The business has remained unprofitable because of lower production efficiency and higher repair costs resulting from aging production facilities, as well as soaring material and other costs, and profitability is not expected to improve going forward. |
| Impact on Earnings Forecast | The impact on the consolidated results of operations of the Company and its group is currently under review. If any matter requiring disclosure arises, it will be disclosed promptly. |
| Suspended operations | Production of products other than camshafts in the domestic metal-forming products business is scheduled to end by September 2027. |
| Outlook | Domestic production of the products concerned is scheduled to end by September 2027. The employees engaged in the business are expected to remain employed through reassignment within the Group and other measures. The impact on consolidated results of operations and other matters is currently under review, and any matter requiring disclosure will be disclosed promptly. |
| Planned follow-up disclosure | If any matter requiring disclosure arises, it will be disclosed promptly. |
Items this document does not state (16)
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.As the Company reviews its business portfolio and reallocates management resources, demand has declined due to lower domestic automobile production, the substitution of aluminum for cast iron, and a shift to overseas products. The business has also remained unprofitable because of lower efficiency and higher repair costs resulting from aging production facilities, as well as soaring material costs, and the Company does not expect profitability to improve going forward.