Hi-Lex to Reorganize Domestic Production Facilities Starting FY2027

TOKYO, Aug 03 (Pulse News Wire) – HI-LEX Corporation (7279.T) announced plans to restructure its domestic production facilities based on a previously outlined strategy. The restructuring involves reducing the number of domestic production sites from 13 to 11, with phased transfers of products from Hitachi and Mikawa factories to other locations, leading to their eventual shutdown.

Key objectives include consolidating similar product lines and functions at central hubs to enhance operational efficiency and productivity. HI-LEX expects improvements in quality management, process optimization, and technology inheritance through specialization. Additionally, the plan aims to stabilize supply chains and reduce fixed costs by clearly defining roles among facilities.

Scheduled to begin in fiscal year 2027, the transition will be completed by 2028. HI-LEX stated there would be no significant impact on the consolidated performance for the October 2026 fiscal year. However, the company will continue to assess potential one-time expenses, investment amounts, and revenue enhancement effects and update stakeholders accordingly.