Shikibo Ltd. decided to withdraw from business in Thai Shikibo Co., Ltd., a Thai affiliate that manufactures and markets spun yarn. Shikibo holds a 35% share in the Thai company. The board of directors of Thai Shikibo consisting of affiliated companies will meet to resolve on the withdrawal, and enter procedures to dissolute and liquidate the company.
Thai Shikibo was founded in 1988. In recent years, its major exports of spun yarn to Japan have been decreasing, while in Thailand, market conditions have been worsening, and costs have been rising due to soaring labor costs. In addition, it has become difficult to secure personnel. The business withdrawal was decided in order to eliminate risks in the future, as a tough business and employment environment is likely to continue.