Establishing an Overseas Business Platform

「金属素形材事業では、メキシコ子会社にて自動車向け部品の計画未達による減益を見込むものの、産業機械事業を中心とする増益がこれを上回るため、各段階利益は前回発表予想を上回る見込みとなりました。」

「Although the Metal Forming Business reported lower sales because order volumes for automotive parts declined at the Mexican subsidiary, sales in the Machine Tool Business increased in overseas markets.」

「KITAGAWA (THAILAND) CO.,LTD. was approved for dissolution at a Board of Directors meeting held on 12 March 2025 and is currently undergoing liquidation. Key financial information of KITAGAWA MEXICO,S.A.DE C.V.: ①Net sales ¥6,505 million ②Ordinary loss ¥760 million ③Net loss ¥762 million.」

「During the interim consolidated accounting period, we established Kitagawa Techonology India Pvt.Ltd.」

「At a meeting of the Board of Directors held on 25 August 2023, we resolved to acquire additional shares in our consolidated subsidiary KITAGAWA MEXICO,S.A.DE C.V. and make it a wholly owned subsidiary. We entered into a share transfer agreement dated 14 September 2023 and acquired the shares on 15 September 2023. The additional shares represented 25% of voting rights, and the transaction made KITAGAWA MEXICO,S.A.DE C.V. our wholly owned subsidiary.」

「KITAGAWA(THAILAND) CO.,LTD.'s Chonburi Plant manufactures and sells cast products related to the metal forming business. However, as it has become difficult to secure profits and recover the investment amid changes in market conditions and surging raw-material and energy costs, and this situation has continued, we decided to close the plant by the end of 2023 because we judged that it would be difficult to continue the business sustainably.」

「At the Mexican subsidiary, production preparations for newly ordered automotive parts were completed and mass production began. At the Thai subsidiary, a review of production items was completed, and operations on some production lines were suspended to improve production efficiency.」

「To secure overseas markets with growth potential, the Group will continue working to establish the business platforms of its overseas sites and expand its business scope, including through strategic investment of management resources.」

「At this company, we continued to pursue measures implemented to date, including strengthening coordination among domestic and overseas production sites, improving production efficiency, and increasing the added value of products, while」

「We continued working to improve quality and production efficiency, improve profitability at domestic and overseas production sites, and establish our business platform by focusing on developing new products in each business area.」

「In our production structure, we began reciprocal complementary supply among our three sites in Thailand, Mexico, and Japan to balance production loads among global sites and make effective use of equipment.」

「The Mexican subsidiary strengthened its casting lines and worked to acquire new customers to maintain profitability. The Thai subsidiary also brought mass production on its secondary casting line into full swing.」

「In Japan, we newly constructed a processing building at the Fukuyama Plant, our production site, in December. At the Mexican subsidiary, we held a start-up ceremony for the secondary casting line in October and continued preparations for mass production. At the Thai subsidiary, the secondary casting line entered full-scale operation.」

「The Mexican subsidiary focused on maintaining and improving profitability, and held a start-up ceremony for the secondary casting line in October before beginning trial operations. The Thai subsidiary continued preparations for the early start of mass production on its secondary casting line.」

「At the Mexican subsidiary, we are focusing on maintaining profitability as the peso strengthens against the dollar. The secondary casting line is scheduled to hold a completion and handover ceremony in August and a start-up ceremony in November, after which trial operations will begin. Meanwhile, the Thai subsidiary is taking steps toward mass production operations for its secondary casting line to restore performance at an early stage.」

「At the Mexican subsidiary, production efficiency has improved and profitability has remained on track. The secondary casting line is scheduled to begin trial operations around September this year. Meanwhile, the Thai subsidiary is taking steps toward mass production operations for its secondary casting line to restore performance at an early stage.」

「Against this backdrop, the Group worked to improve quality and production efficiency, and undertook initiatives to establish its business platform, including improving profitability and expanding production facilities at its overseas production sites in Thailand and Mexico.」

「Against this backdrop, the Group worked to improve quality and production efficiency, and undertook initiatives to establish its business platform, including improving profitability and expanding production facilities at its overseas production sites in Thailand and Mexico.」

「We have identified “establishing an overseas business platform,” “improving productivity through work-style reform,” “strengthening our development structure,” and “promoting human resources development and training” as key challenges facing the Group, and will continue working to strengthen our management platform. In particular, across the Group, we will work to establish the business platforms of our overseas subsidiaries in Mexico, Thailand, and China.」