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Restructuring YAMAHA METANIX CORPORATION
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YAMAHA METANIX CORPORATION (Hereafter "the Company"; Head office: Iwata-shi, Shizuoka-ken; President: Naoki Kabashima), a wholly owned subsidiary of YAMAHA CORPORATION, was established to manufacture and sell electronic metals, including lead frames and invar shadow masks for use in cathode-ray tubes. However, growth in demand for such tubes has stagnated due to the flooding of the market by large-screen liquid crystal panels—which were not yet popular when the Company's invar business was launched. This, combined with a decline in unit prices for invar materials, has manifested in a substantial loss and, at the end of fiscal 2003, a net capital deficiency.
Determined to restore profitability by reinforcing the Company's financial system, strengthening operations related to the copper materials used in its core lead-frame products, and restructuring its manufacturing system, YAMAHA reached an agreement at its Board of Directors Meeting, held on May 9, 2003, to restructure YAMAHA METANIX as follows. |
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| 1. Restructuring Plan |
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| (1) |
Business Closure:
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Withdrawal from invar manufacturing and sales (manufacturing will continue until July 2003)
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Factory location: |
2630 Shingai, Iwata-shi, Shizuoka-ken, 438-0025 Japan
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Sales: |
Sales of invar materials amounted to approximately ¥3.0 billion in fiscal 2003.
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Manufacturing facilities: |
The manufacturing facilities of the invar materials to allow for the production of other products is under consideration.
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Employees: |
As a result of the withdrawal, 48 employees (YAMAHA employees working at YAMAHA METANIX) will be transferred to different positions within the Group.
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The business withdrawal will not have a significant impact on YAMAHA's consolidated performance.
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| (2) |
Increase in capital: |
Paid-in capital is to be increased as shown below.
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Amount of increase: |
¥3.5 billion
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Removal of accumulated loss: |
The resulting increase in capital will be used to eliminate accumulated losses.
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| 2. Corporate Profile |
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YAMAHA METANIX CORPORATION :
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Established in 1991
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| Location: |
2630 Shingai, Iwata-shi, Shizuoka-ken, 438-0025 Japan
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| Representative: |
Naoki Kabashima
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| Capital: |
¥2.5 billion (100% invested by YAMAHA)
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| Business fields: |
Sale and production of electronic metals and processed products
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| Employees: |
297 (on March 31, 2003)
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| Sales: |
Approximately ¥14.5 billion (fiscal 2003)
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For further information, please contact
Yamaha Corporation
Corporate Communication Group,
Public Relations Division
TEL. +81-3-5488-6601
FAX +81-3-5488-5060
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