Suspension of production operations at a Thai manufacturing subsidiary
BANGKOK ENSHU MACHINERY Co.,Ltd.（BEM）
BEM's factory in Thailand and the production operations for the Company's machine tools
In recent years, demand for capital investment by Japanese companies in Thailand's automobile market has declined due to the progress of the shift to EVs and the rise of Chinese manufacturers, among other factors, and BEM's factory has continued to operate at a low level.
Fiscal year ending March 2027
The impact of this matter on the Company's Group results for the fiscal year ending March 2027 is currently under review. If any matters requiring disclosure arise, the Company will disclose them promptly.
Company response
BEM's production operations
For the time being, machinery production will be handled by the Japanese head office and the Chinese subsidiary. The Thai sales subsidiary, ENSHU (Thailand) Limited, will continue its business.
If any matters requiring disclosure arise, the Company will disclose them promptly.
| Item | Details |
|---|---|
| Event name | Suspension of production operations at a Thai manufacturing subsidiary |
| Date of occurrence | 30 September 2026 (scheduled date of suspension of operations) |
| Subject Entity | BANGKOK ENSHU MACHINERY Co.,Ltd.（BEM） |
| Target Locations / Products | BEM's factory in Thailand and the production operations for the Company's machine tools |
| Cause | In recent years, demand for capital investment by Japanese companies in Thailand's automobile market has declined due to the progress of the shift to EVs and the rise of Chinese manufacturers, among other factors, and BEM's factory has continued to operate at a low level. |
| Accounting period in which recognized | Fiscal year ending March 2027 |
| Impact on Earnings Forecast | The impact of this matter on the Company's Group results for the fiscal year ending March 2027 is currently under review. If any matters requiring disclosure arise, the Company will disclose them promptly. |
| Suspended operations | BEM's production operations |
| Outlook | For the time being, machinery production will be handled by the Japanese head office and the Chinese subsidiary. The Thai sales subsidiary, ENSHU (Thailand) Limited, will continue its business. |
| Planned follow-up disclosure | If any matters requiring disclosure arise, the Company will disclose them promptly. |
Items this document does not state (15)
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.Demand for capital investment by Japanese companies in Thailand's automobile market has declined due to the shift to EVs and the rise of Chinese manufacturers, and BEM's factory has continued to operate at a low level. The Company states that it determined that improving profitability in the near term would be difficult.