Mitsubishi Steel Mfg.Co.,Ltd. [5632.T]
TOKYO, Mar 30 (Pulse News Wire) – Mitsubishi Steel Mfg.co.,ltd. (5632.T) decided to sell its wholly-owned subsidiary, MSSC MFG MEXICANA, S.A.
DE C.V., to a group company of Jinsheng Technology Holdings Limited. The decision was made during the March 30 board meeting. MSSC MEXICANA, established in 2016, operates as a production base for automotive springs in North America. Due to recent changes in market conditions and customer trends, the company's performance has been challenging. To enhance competitiveness and capital efficiency in the automotive spring business, Mitsubishi Steel plans to consolidate its North American operations into two locations in Canada and the United States. As part of this strategy, the company will divest its shares in MSSC MEXICANA. Details of the transaction include transferring 100% of MSSC MEXICANA’s shares for approximately $14.89 million (based on an exchange rate of 1 dollar equals 11.52 pesos).
Following the sale, Mitsubishi Steel will no longer hold any shares in MSSC MEXICANA but intends to maintain trading relationships with customers through retained sales rights. The buyer, Jinsheng Mexico Industrial, S. DE R.L. DE C.V., is based in Irapuato, Guanajuato, Mexico, and specializes in research, development, manufacturing, and sales of springs, auto parts, metal processing machinery equipment, and steel wire for springs. It was founded in 2025 and has a capital of ¥50 thousand Mexican pesos. The transaction is expected to reduce losses within Mitsubishi Steel's consolidated results once completed. The impact on the fiscal year ending March 2026 is anticipated to be minor, and the company expects tax benefits related to carried-forward losses.
🟡 Confidence: Standard AI-translated content.