|
Mabuchi Motor Co., Ltd. today announced the decision at its board of directors' meeting held on August 8, 2005 to wind up its consolidated subsidiary MABUCHI MOTOR(MALAYSIA)SDN. BHD.
Profile of the subsidiary
| 1) Name |
MABUCHI MOTOR(MALAYSIA) SDN. BHD. |
| 2) Address |
Chemor, Perak, Malaysia |
| 3) Representative |
Sun Zuei Che |
| 4) Established |
August 22, 1989 |
| 5) Capital |
M$30 million |
| 6) Shareholders |
40% Mabuchi Motor Co., Ltd.
60% Mabuchi Taiwan Co., Ltd.
(100% subsidiary of Mabuchi Motor Co., Ltd.) |
| 7) Line of business |
Manufacturing and sales of small electric motors and their parts. |
| 8) Production volume |
52 million units/year (2.6% of total production volume of Mabuchi Motor Co., Ltd.) as of the end of December 2004. |
|
Reason for the winding-up
The subsidiary was established for the purpose of manufacturing and supplying motors for customers in ASEAN countries for audio-visual applications. However, due to the shrinking of the market caused by the acceleration of movement to China of our customers and deteriorating cost-competitiveness, we have decided to wind up the subsidiary.
Meanwhile, motors the subsidiary has been supplying are transferred to our production facilities in Vietnam and China and we are planning to enhance our group-wide cost-competitiveness and improve the profitability.
Schedule of winding-up
October 2005: Resolution of winding-up at the special general meeting of shareholders of the subsidiary
December 2006: Completion of winding-up
Impact on the performance of Mabuchi Motor Co., Ltd.
We estimate that an extraordinary loss of 700 million yen to 1 billion yen may be generated to our consolidated accounts of this year due to the winding-up of the subsidiary. Today, we also have submitted the revision to Tokyo Stock Exchange, which reflects the said extraordinary loss, of the performance estimate for the year ending December 31, 2005 which we announced on February 18, 2005.
Inquiries: Tsutomu Takahashi, Public Relations Dept. (Tel: +81-47-710-1107)
|
