Kinki Sharyo will transfer the Piscataway plant of its U.S. subsidiary for $26 million. Handover is scheduled for the 26th, and approximately ¥2.4 billion in gains on the sale of fixed assets are expected to be recorded as extraordinary income.
Kinki Sharyo announced that its U.S. subsidiary, KI-PISCATAWAY LLC, will transfer the Piscataway plant in New Jersey. The transfer price, including the land, buildings and ancillary facilities, is $26 million, and handover is scheduled for the 26th of this month.
The transfer is part of the company's medium-term management plan, "2028." The company said the aim is to streamline its North American operations by disposing of fixed assets whose utilization rate could not be increased. The gain on the sale, expected to total approximately ¥2.4 billion, is expected to be recorded as extraordinary income and to exceed the previously announced earnings forecasts.
The impact of the fire that occurred at the plant in August is still being examined. The company said it would make a timely disclosure if a revision to its earnings forecasts becomes necessary. The transaction is positioned as a financial strategy.