Omikenshi Withdrawing from Rayon Staple Fiber and Yarn Production

Omikenshi Co., Ltd. has disclosed a drastic business restructuring plan with includes a withdrawal from the production of rayon staple fiber and yarns and textile business, as well as from other unprofitable businesses.
The company will focus its management resources on R&D addressing environmental issues and real estate leasing, home furnishings, cosmetics and software development with an aim at early repatriation.
The withdrawal from rayon staple fiber and yarn production, related businesses and textile business is to start from the end of this June, and is to be completed by the end of September. The withdrawal from other unprofitable businesses will also start from June. In accordance with these moves, the company will recommend voluntary retirement to all employees.
Extraordinary losses of 6,020 million yen are expected due to this business restructuring program. Withdrawal costs of 1,800 million yen were reserved in the fiscal year ending in March 2020, and extraordinary losses of 4,220 million yen will be posted in the fiscal year ending in March 2021. Meanwhile, an extraordinary income of 3,406 million yen is expected from the sales of real estate, etc.
With such business restructuring efforts, Omikenshi intends to turn its business into black in the fiscal year ending in March 2022, with net sales of 2,800 million yen, operating profits of 260 million yen, and net profits of 980 million yen.