Warabeya Nichiyo Holdings announced that it would suspend operations at its newly built plant in Ohio. Following discussions with Seven-Eleven, Inc., the company determined that demand conditions were challenging. It plans to pursue the sale of the plant’s assets and expects to record an extraordinary loss of approximately ¥700 million.
Warabeya Nichiyo Holdings publicly announced that it would suspend operations at its newly built plant in Ohio. Against the backdrop of its business relationship with Seven-Eleven, Inc., the plant’s prospective tenant, the company had been selected as a business partner for the US Midwest.
The company initially decided to build the plant in 2023 and invested more than approximately ¥10 billion, expecting operations to begin in December 2024. However, following a review of the construction work and delays in installing equipment, the start-up timing was changed to summer 2026 and was subsequently left undecided.
The company continued discussions regarding production plans, but determined that it would be difficult to commence operations in light of demand conditions and decided to suspend the plant’s start-up. It plans to negotiate the sale of the plant’s assets and expects to record an extraordinary loss of approximately ¥700 million.