Suspension of Gisborne Plywood Operations in Anticipation of New Zealand’s Log-Harvesting Season and Focus on High-Value-Added Products

「In light of the decline in the profitability of the New Zealand subsidiary, the company decided to conduct a fundamental review of the Northland and Tri-board plants. After carefully considering the future business environment and profitability, the company reduced the carrying amounts of the assets at these plants to their recoverable amounts and recognized the resulting reductions as a business restructuring loss under extraordinary losses.」

「Although sales and production volumes continued to decline because of weaker housing demand in Japan and overseas, and costs remained high because of the weaker yen and continuing inflation, profits improved year on year, helped by the effect of sales price revisions in Japan, expense reductions from higher labor productivity, and the benefits of restructuring the New Zealand subsidiary in the previous fiscal year.」

「Accordingly, the company will close the Gisborne plant and consolidate its production sites to improve profitability and strengthen competitiveness through higher productivity, while continuing to secure production volumes that meet future demand.」

「Accordingly, the company will close the Gisborne plant and consolidate its production sites to improve profitability and strengthen competitiveness through higher productivity, while continuing to secure production volumes that meet future demand.」

「On 25 October 2023, Juken New Zealand Ltd., a consolidated subsidiary in New Zealand, began labor-management consultations regarding business restructuring aimed at improving the profitability of its Gisborne plant. No final conclusion has been reached at this point, but impairment losses on manufacturing equipment, personnel restructuring costs and other expenses may arise in the future.」

「To steadily improve performance in the increasingly competitive environment ahead, the company has adopted the following as its medium- to long-term management strategy: (I) secure a stable quality and volume of raw materials through its New Zealand forestry business, which uses sustainable forest management practices to conserve forest resources, including planting, cultivation, thinning and harvesting; (II) further improve advanced wood-processing technology to make greater use of valuable resources; (III) use the latent potential of wood to create “winning markets × winning mechanisms” in new growth markets such as Asia and in Japan’s remodeling, non-residential and commercial environment markets; (IV) identify the essence of changing markets, propose attractive products and services, and create new fans; (V) further develop manufacturing networks in Japan and overseas to promote new strategies rapidly across the group, pursue efficient operations and lower costs, and rebuild internal systems; and (VI) respond to needs in Japan and overseas by utilizing certified wood.」

「To steadily improve performance in the increasingly competitive environment ahead, the company has adopted the following as its medium- to long-term management strategy: (I) secure a stable quality and volume of raw materials through its New Zealand forestry business, which uses sustainable forest management practices to conserve forest resources, including planting, cultivation, thinning and harvesting; (II) further improve advanced wood-processing technology to make greater use of valuable resources; (III) use the latent potential of wood to create “winning markets × winning mechanisms” in new growth markets such as Asia and in Japan’s remodeling, non-residential and commercial environment markets; (IV) identify the essence of changing markets, propose attractive products and services, and create new fans; (V) further develop manufacturing networks in Japan and overseas to promote new strategies rapidly across the group, pursue efficient operations and lower costs, and rebuild internal systems; and (VI) respond to needs in Japan and overseas by utilizing certified wood.」

「To steadily improve performance in the increasingly competitive environment ahead, the company has adopted the following as its medium- to long-term management strategy: (I) secure a stable quality and volume of raw materials through its New Zealand forestry business, which uses sustainable forest management practices to conserve forest resources, including planting, cultivation, thinning and harvesting; (II) further improve advanced wood-processing technology to make greater use of valuable resources; (III) use the latent potential of wood to create “winning markets × winning mechanisms” in new growth markets such as Asia and in Japan’s remodeling, non-residential and commercial environment markets; (IV) identify the essence of changing markets, propose attractive products and services, and create new fans; (V) further develop manufacturing networks in Japan and overseas to promote new strategies rapidly across the group, pursue efficient operations and lower costs, and rebuild internal systems; and (VI) respond to needs in Japan and overseas by utilizing certified wood.」

「To steadily improve performance in the increasingly competitive environment ahead, the company has adopted the following as its medium- to long-term management strategy: (I) secure a stable quality and volume of raw materials through its New Zealand forestry business, which uses sustainable forest management practices to conserve forest resources, including planting, cultivation, thinning and harvesting; (II) further improve advanced wood-processing technology to make greater use of valuable resources; (III) use the latent potential of wood to create “winning markets × winning mechanisms” in new growth markets such as Asia and in Japan’s remodeling, non-residential and commercial environment markets; (IV) identify the essence of changing markets, propose attractive products and services, and create new fans; (V) further develop manufacturing networks in Japan and overseas to promote new strategies rapidly across the group, pursue efficient operations and lower costs, and rebuild internal systems; and (VI) respond to needs in Japan and overseas by utilizing certified wood.」

「To make effective use of high-quality, competitively priced radiata pine logs and expand sales of labor-saving products that address the shortage of skilled workers, the entire company worked as one to rebuild its processing, distribution, sales and management structure and expand sales of high-value-added products,」

「To make effective use of high-quality, competitively priced radiata pine logs, the entire company worked as one to rebuild its processing, distribution and sales structure and expand sales of high-value-added products,」

「To make effective use of high-quality, competitively priced radiata pine logs, the Group worked as one to rebuild its processing, distribution and sales structure and expand sales of high-value-added products.」

「As high-quality, competitive radiata pine logs that had been systematically managed and cultivated reached their harvesting period, the Company focused on establishing a structure for efficiently producing high-value-added products using high-quality solid wood.」

「In order to use this high-quality solid wood to produce high-value-added products efficiently and further improve profitability, the Company restructured the businesses of its overseas subsidiaries and undertook new capital expenditures and production transfers. As part of this initiative, it recorded ¥112 million in business restructuring losses arising at certain plants of overseas subsidiaries as extraordinary losses.」

「In order to use this high-quality solid wood to produce high-value-added products efficiently and further improve profitability, the Company restructured the businesses of its overseas subsidiaries and undertook new capital expenditures and production transfers. As part of this initiative, it recorded ¥111 million in business restructuring losses arising at certain plants of overseas subsidiaries as extraordinary losses.」

「The Company plans to restructure its businesses and rebuild its earnings structure in order to use this high-quality solid wood to produce high-value-added products efficiently.」

「As part of this initiative, the Company stopped the plywood production line at the Gisborne plant of Juken New Zealand Ltd. and suspended the plywood business in order to selectively concentrate manufacturing resources. In response, it recorded approximately ¥900 million in extraordinary losses, comprising impairment losses on plywood manufacturing equipment and restructuring costs including severance payments associated with workforce reductions.」

「The abundant, high-quality and competitive radiata pine logs that have been systematically managed and cultivated to date are approaching their harvesting period. This means that the Group has secured abundant supplies of solid wood, one of its strengths. Going forward, the Company plans to restructure its businesses and rebuild its earnings structure in order to use this high-quality solid wood to produce high-value-added products efficiently. Accordingly, against the backdrop of future supplies of high-quality logs, the Company decided to stop the plywood production line at the Gisborne plant and suspend the plywood business, with the aim of improving profitability by selectively concentrating manufacturing resources and producing high-value-added products. By the end of February 2018: Suspension of the plywood business (scheduled) Although the loss resulting from the business suspension has not been determined at this time, the shutdown of the plywood production line at the Gisborne plant is expected to result mainly in an impairment loss on manufacturing equipment. Including severance payments and other costs associated with workforce reductions, the Company expects to record extraordinary losses of approximately ¥900 million by the end of the fiscal year ending March 2018.」