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Yamaha Announces Closure of Subsidiaries of Yamaha Corporation of America |
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The Board of Directors of Yamaha Corporation at its meeting held today, February 7, 2007, announced it will close three subsidiaries of Yamaha Corporation of America (YCA) in the United States. These are Yamaha Musical Products, Inc. (YMP); Yamaha Music Manufacturing, Inc. (YMM), and Yamaha Exporting, Inc. (YEI).
YMP and YMM, which are manufacturing subsidiaries in the United States, were founded in the 1970s. YMP engaged in the production of wind instruments and YMM manufactured pianos and PA speakers.
Yamaha is in the process of strengthening the competitiveness of its musical instrument business by reorganization of its global manufacturing network. Today, after considering the current condition and future prospects for YMP and YMM, Yamaha has made the judgment that both companies had completed their respective missions and therefore announced to cease production and dissolve YMP and YMM. Going forward, Yamaha plans to make up for the wind instrument production of YMP by increasing production at Xiaoshan Yamaha Musical Instruments Co., Ltd., its manufacturing subsidiary in China; P.T. Yamaha Musical Products Indonesia, its manufacturing subsidiary in Indonesia; and its Toyooka Plant in Japan. Yamaha will make up for the piano production of YMM through an increase in output at Hangzhou Yamaha Musical Instruments Co., Ltd., its manufacturing subsidiary in China, and Taiwan Yamaha Musical Inst. Co., Ltd., its production subsidiary in Taiwan. Plans call for handling the PA speaker production of YMM partly through an increase in output at P.T. Yamaha Music Manufacturing Asia, Yamaha's manufacturing subsidiary in Indonesia, and continuation of subcontracting production in the United States.
Accompanying the dissolution of YMP and YMM, exports from these subsidiaries that were formerly handled by YEI will be suspended. The remaining business operations of YEI will be merged with its parent company YCA, and, as previously mentioned, YEI will be dissolved.
Yamaha estimates that impact of these closures on its consolidated financial statements will be a special loss of approximately ¥1.3 billion in closure costs. |
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| Details of the Companies to Be Closed |
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| 1. Outline of the Companies |
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(1) |
| Name |
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Yamaha Musical Products, Inc. |
| Address |
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3445 East Paris Avenue S.E., Grand Rapids MI 49512-2960 |
| Representative |
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Yoshihiro Doi, President |
| Paid-in capital |
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US$2 million |
| Lines of business |
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Production of wind instruments |
| Number of employees |
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189 (including three seconded from Japan) |
| Sales |
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US$30 million (Actual for the year ended March 31, 2006) |
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(2) |
| Name |
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Yamaha Music Manufacturing, Inc. |
| Address |
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100 Yamaha Park, Thomaston, Georgia 30286 |
| Representative |
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Shinichi Minatodani, President |
| Paid-in capital |
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US$2 million |
| Lines of business |
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Production of pianos and pro-audio speakers |
| Number of employees |
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187 (including two seconded from Japan) |
| Sales |
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US$34 million (Actual for the year ended March 31, 2006) |
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(3) |
| Name |
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Yamaha Exporting, Inc. |
| Address |
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6600 Orangethorpe Ave., Buena Park, CA 90620 |
| Representative |
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Yoshihiro Doi, President |
| Paid-in capital |
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US$2,000 |
| Lines of business |
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Exports of Yamaha products manufactured in the United States, raw materials, musical instruments, and accessories |
| Number of employees |
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5 (including one seconded from Japan) |
| Sales |
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US$21 million (Actual for the year ended March 31, 2006) |
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| 2. Schedule for Closures |
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(1) |
YMP |
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| Suspension of production |
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Scheduled for the end of April 2007 |
| Liquidation |
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Scheduled for 2008 (Following the sale of land and buildings) |
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(2) |
YMM |
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| Suspension of production |
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Scheduled for the end of March 2007 |
| Liquidation |
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Scheduled for 2008 (Following the sale of land and buildings) |
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(3) |
YEI |
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| Suspension of business operation |
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Scheduled for the end of March 2007 |
| Liquidation |
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Scheduled for September 2007. |
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| 3. Other Matters Related to the Closures |
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(1) |
YMP and YMM |
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| Employment |
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Employees are scheduled to be laid off |
| Closure costs |
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Approximately US$11 million |
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(2) |
YEI |
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| Employment |
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Employees will be transferred to YCA. |
| Closure costs |
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Not applicable |
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For further information, please contact
Yamaha Corporation
Public Relations Division,
Public & Investor Relations Group
TEL. +81-3-5488-6601
FAX. +81-3-5488-5060
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