TOKYO, Apr 28 (Pulse News Wire) – Fine Sinter CO.,LTD. (5994.T) decided to halt production activities at its subsidiary, American Fine Sinter CO.,LTD.
(AFS), effective March 31, 2028. The move aims to optimize global production efficiency amid declining sales performance. AFS was established in July 2001 to cater to the growing North American automotive market and local supply demands due to trade tensions between the United States and Japan.
Over time, despite efforts to improve operational efficiencies, the company concluded that phasing out operations would enhance long-term profitability and strengthen its financial structure. As part of this restructuring, Fine Sinter anticipates recognizing special losses amounting to ¥1.915 billion for impairment charges and ¥473 million for inventory valuation adjustments in the fiscal year ending March 2026. In addition to these provisions, the company noted potential additional costs such as increased severance payments in future periods but did not specify further details.
Fine Sinter will disclose its consolidated earnings forecast for the fiscal year ending March 2026 once finalized.
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