Economic slowdown in the Chinese market and adjustment of excess capacity

「In the Chinese market, the premium sports-casual segment remained strong, and orders for large water-jet loom projects continued. The Group also received an order for an air-jet loom project involving a new market entrant.」

「In the Chinese market, the premium sports-casual segment continued to perform well, and large-scale water-jet loom orders continued. The company also built up orders for wide-width and yarn-dyed applications of air-jet looms.」

「In the Chinese market, the domestic premium sports-casual segment continued to perform well, and the company continued to receive large-scale water-jet loom orders.」

「In the Chinese market, the domestic premium sports-casual segment was performing well, and the company received large-scale water-jet loom orders throughout the year.」

「In addition, personal consumption remained sluggish in the Chinese market, and capital investment stagnated in both countries.」

「In addition, personal consumption in the Chinese market remained sluggish due to the real estate downturn, and capital investment stagnated in both major markets.」

「Investment projects backed by Chinese capital and based on expectations for an economic recovery progressed strongly, leading to a significant increase in orders for water-jet looms.」

「In the Chinese market, advance-investment projects for water-jet looms in anticipation of future market conditions were emerging among large and mid-sized users, and stronger sales activities were leading to contracts. A proposed policy to reduce the 80,000 old-model water-jet looms in the Wujiang area, a major production centre for Chinese filament fabrics, triggered new investment in other areas and emerging demand to switch to air-jet looms.」

「In China, the company held private exhibitions and technical exchange meetings centred on visits to operating units of the new air-jet loom, highlighted their high-speed, stable operation, and built up orders.」

「In the Chinese market, the disruption following the lifting of the zero-COVID policy last December was gradually subsiding, the order environment was gradually improving, and large-scale projects were beginning to emerge.」

「In China as well, orders were recovering as the effects of the international textile machinery exhibition and private exhibitions held last year, as well as the track record of group operation at model factories, were recognised.」

「Demand increased in the Chinese market for the new water-jet loom used to produce high-grade fabrics for export, and orders began to trend upward from the second quarter onward.」

「In addition, orders increased in the Chinese market as the effects of the international textile machinery exhibition and private exhibitions held last year became apparent.」

「In the textile machinery business, demand continued in the Chinese market, particularly for textiles serving domestic demand. However, uncertainty remained, including delays in customers’ capital investment plans for water-jet loom projects, and sales fell below plan.」

「Demand continued in the Chinese market, the company’s main market, particularly for textiles serving domestic demand.」

「In China, the company’s main market, demand for home textiles, towels and sportswear, among other products, was trending upward, and higher loom operating rates were reported in production areas.」

「In the textile machinery sector, a full-scale recovery in capital investment did not materialise.」

「From April onward, restrictions on movement were gradually lifted in China and domestic consumption was reportedly recovering, but new capital investment did not materialise because exports of textile products to Europe and the United States had not recovered.」

「On the orders front, signs of improving conditions emerged, including contracts with new customers in the Chinese market following the positive reception to the Phase One agreement between the United States and China to reduce additional tariffs. Although orders declined year on year, they were above the levels recorded in the previous third and fourth quarters.」

「In the textile machinery business, in addition to home textiles being subject to the third round of U.S. additional tariffs on China, general apparel was included in the fourth round. As a result, from the third quarter onward, restraint on new capital investment in the Chinese market expanded, significantly affecting both orders and sales.」

「Although demand remained for replacement of high-end jet looms prompted by environmental issues and for textile machinery investment serving China’s domestic demand, caution toward investment intensified due to the U.S.-China trade dispute, and the Chinese market slowed sharply.」

「In the textile machinery business, concerns arose over the impact of U.S.-China trade friction on the Chinese market. Although there was some impact on air-jet looms for sheets and towels subject to additional tariffs, demand continued for replacement of high-end water-jet looms prompted by environmental issues in China, as did capital investment in textile machinery for China’s domestic demand, and the market remained generally firm.」

「Although some customers in the Chinese market were cautious about capital investment due to concerns over U.S.-China trade friction, the textile industry as a whole remained strong, with production and sales sustained at high levels.」

「In the textile machinery business, some customers in the Chinese market deferred investment while assessing the impact of trade friction with the United States. However, operating rates remained high in the filament-fabric sector, where environmental regulations have reduced production capacity, and business discussions for high-performance jet looms and sizing machines continued.」

「Meanwhile, stringent environmental regulations continued in the Chinese market. Factories that failed to meet wastewater standards were closed and Chinese-made water-jet looms were scrapped, increasing demand for our high-performance water-jet looms and jet looms manufactured by our Chinese subsidiary.」

「In the Chinese market, as stringent environmental regulations were implemented, factories that failed to meet wastewater standards were closed and Chinese-made water-jet looms were scrapped. This generated demand to replace them with our high-performance water-jet looms and to switch to air-jet looms.」

「In addition, orders for our water-jet looms, which offer high energy and water efficiency, remained firm in the Chinese market as wastewater regulations were tightened. Orders at our Chinese subsidiary Tsudakoma Machinery Manufacturing (Changshu) Co., Ltd. also increased.」

「The Chinese market strengthened its recovery trend. In areas where many water-jet looms had been installed, wastewater regulations were tightened, textile factories that failed to meet wastewater standards were forcibly shut down, and excess capacity was rationalised. As a result, orders for fabrics increased at leading companies, and demand for our water-jet looms recovered for the expansion of new facilities. Orders also increased at our Chinese subsidiary Tsudakoma Machinery Manufacturing (Changshu) Co., Ltd.」

「Meanwhile, the Chinese market was gradually moving toward recovery. In addition, amid environmental issues including wastewater regulations, excess capacity, particularly of Chinese-made water-jet looms, was being rationalised, and market restructuring was also under way. Sales activities were strengthened to secure orders when capital investment resumed in earnest.」

「In the March-May period (second quarter), the Indian market had generally normalised, while the Chinese market also showed increasingly strong signs of recovery.」

「In the Chinese market, recovery in the water-jet loom segment, which the company had been anticipating, was delayed, but the market was showing increasingly strong signs of recovery, including the launch of large-scale projects for air-jet looms used for towels.」

「Meanwhile, excess capacity was reduced, advancing the “sound development of the market,” in which companies focused on quality survived. Business discussions had already resumed with some leading companies in anticipation of an economic recovery, and the Chinese market was beginning to show signs of moving from a bottom toward recovery.」

「In the textile machinery business, the decline in the Chinese market was offset by the Indian market, and production and sales were generally in line with plan.」

「In the Chinese market, excess capacity adjustments progressed amid the economic slowdown, while new capital investment remained sluggish.」