So far, structural improvement, such as withdrawal from the less profitable business, has been carried out in Kofu Plant, because of the slowdown of the domestic demand and the severity of the price competition. Maintaining the plant becomes more difficult. For this reason, we have decided to shift the production of the high-performance and the more profitable products to other plants, and to close Kofu Plant. Employees will be relocated mainly to other FEIC plants.
With the manufactured items transfer and the consolidation to the other plants, we will improve profitability by fixed cost reduction and productivity improvement. Loss is expected due to the occurrence of expenses associated with personal relocation and disposal of production facilities and building that are no longer needed, but the amount is undecided at this moment. In addition, an intension to sell the old factory site is being considered. Hereafter, OEM productions with a focus on overseas production bases are prioritized, and the overseas production shift is promoted.