Nitto Denko (6988) · RiskMitigated
Declining competitiveness of the flexible printed circuit board business in Suzhou, China
First written in FY2018-Q3. 1 of 2 entries say "Materialised", first in FY2018-Q3. Latest entry: FY2018.
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Declining Competitiveness and Transfer of a Flexible Printed Circuit Board Business in Suzhou, ChinaA theme 1 companies write about · 1 as a headwind · 0 as a tailwind
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- FY2018MitigatedAnnual report
「The transfer of the equity interest was completed on 9 May 2018.」
The transfer of the flexible printed circuit board business in Suzhou, China, to 日本メクトロン was completed as a response to the decline in competitiveness. - FY2018-Q3MaterialisedAnnual report
「In the flexible printed circuit board business operated by our subsidiary in Suzhou, China, production capacity for serving the Chinese market was smaller than that of competitors. As the market became increasingly commoditized, opportunities to reduce costs were limited and price competitiveness declined.」
In the flexible printed circuit board business in Suzhou, China, limited cost reductions due to small production scale and market commoditization led to an actual decline in price competitiveness. In response, the company resolved to transfer the business to 日本メクトロン.