NPR-RIKEN CORPORATION [6209.T]
TOKYO, Apr 13 (Pulse News Wire) – NPR-RIKEN Corporation (6209.T) announced today that its board of directors has decided to cease domestic production of certain cast iron parts within its formed materials business by September 2027. The decision comes amid declining demand due to reduced domestic automobile production and anticipated future shifts towards aluminum components and overseas products.
Additionally, aging equipment has led to decreased efficiency and rising maintenance costs, exacerbating profitability issues. Despite various cost-cutting measures, the division remains unprofitable. As such, the company plans to discontinue domestic production of steering knuckles, housing units, and related parts at Camshaft Igai. In fiscal year 2025, the affected portion of the formed materials business accounted for approximately 23% of total sales and ３% of consolidated sales, contributing ¥5.061 billion in revenue and --¥725 million in operating profit.
The division employed 56 staff members as of April 01, 2026. Regarding employee placement, NPR-RIKEN intends to facilitate internal transfers to ensure continued employment for those impacted. The company will continue casting camshafts domestically and maintain operations in Indonesia through its subsidiary, Pakarti Riken Indonesia. Further details on the impact on group performance will be disclosed once assessed.
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