WARABEYA NICHIYO HOLDINGS CO.,LTD. [2918.T]
TOKYO, May 27 (Pulse News Wire) – Warabeya Nichiyo Holdings CO.,LTD. (2918.T) reported a fire incident at its Sapporo factory operated by its subsidiary, Warabeoya Nichiyohoshi Food Co., Ltd., which occurred on February 16, 2026.
The fire caused partial damage to buildings and manufacturing equipment, leading to the suspension of operations at the facility. The company deeply regrets the inconvenience and concern caused to nearby residents, customers, trading partners, and stakeholders. As part of ongoing efforts to prevent recurrence, external experts conducted a thorough investigation into the cause of the fire, which was attributed to a combination of operational errors and equipment malfunctions resulting in gas leakage. Immediate actions included inspections of gas equipment across all factories. In addition to removing unused gas pipelines and reinforcing existing ones, the company plans to install additional gas leak detectors and emergency shut-off valves.
Enhanced training programs for employees and improved manuals for emergency responses and gas equipment usage are also being implemented. Operations remain suspended while recovery discussions continue. The cost and duration of restoration are still under assessment, and there is currently no timeline for resuming operations. Production has been temporarily shifted to other facilities, including the Kushiro plant of Warabeoya Hokkaido Co., Ltd., and a dedicated production site for cooking bread products was established in Sapporo West Plant, commencing operations on May 25, 2026. Regarding the impact on performance, the company anticipates preparation costs for the Sapporo West Plant's operation in fiscal year 2027 but does not expect changes to consolidated earnings forecasts due to this incident.
Insurance coverage for disaster preparedness is in place, though the claim amount remains undetermined pending insurer investigations.
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