TOKYO, Apr 27 (Pulse News Wire) – Howa Machinery,ltd. (6203.T) announced today that its board of directors, held, resolved to dissolve and liquidate its subsidiary, Howa (Tianjin) Machine Tool Co., Ltd., effective immediately.
The decision was made due to recent shifts in China's automotive and auto parts markets and aligns with the structural reforms outlined in the company’s mid-term business plan released in May 2025. Additionally, it supports the strategic withdrawal from the Chinese market announced in November 2025. Howa (Tianjin) was established in May 2011 to leverage the company’s engineering expertise in manufacturing machinery lines for clients in China’s automotive sector. It had a capital of $6 million and was wholly owned by Howa Machinery,ltd. with a holding ratio of 100%.
The subsidiary reported sales revenues of ¥560 million yuan, ¥65 million yuan, and ¥398 million yuan for fiscal years ending December 2023, 2024, and 2025, respectively. Operating profit stood at ¥87 million yuan, ¥5 million yuan, and --¥28 million yuan during those same periods. As part of the dissolution process, necessary legal procedures will be completed according to local regulations. However, the exact timeline remains undetermined. The impact on Howa Machinery’s consolidated financial performance for the fiscal year ending March 2026 is currently being assessed.
Any significant developments will be disclosed promptly.
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