2001
May 17, 2001
Minebea Co., Ltd.
Liquidation of Subsidiaries
We hereby announce that our Board of Directors has resolved at a meeting on May 17, 2001 to liquidate the following three subsidiaries:
1.Background to Liquidation
1.Minebea Geotechnology Co., Ltd.
Minebea Geotechnology Co., Ltd., which manufactures and sells civil engineering & construction-related equipment, has been faced with a severe business climate caused by a slump in domestic construction business. Considering it hardly possible to turn around the business of this subsidiary, we have decided to withdraw from this business and to liquidate the subsidiary.
2.Power Systems, Inc. and iii. Minebea Electronics Mexico, S.A. DE C.V.
Power Systems, Inc. (hereinafter "PSI") is a subsidiary in Connecticut, the U.S.A., which is engaged in development of switching power supplies for use in copy machines and medical equipment.
Minebea Electronics Mexico, S.A. DE C.V. (hereinafter "MEM") is located in Sonora, Mexico and manufactures PSI-developed switching power supplies.Because of a slump in the business of their major customers, both PSI and MEM have had to postpone production and have been suffering from a decline in orders. We have therefore decided to close down PSI and MEM for liquidation as part of our effort toward reorganization of the switching power supply business.
In this connection, we will integrate PSI's product development function into the Switching Power Supply Development Division of NMB Technologies Corp. in Chatsworth, California in the U.S.
2.Outlines of the Subsidiaries to be Liquidated
| i.Minebea Geotechnology Co., Ltd. | ii.Power Systems, Inc. | iii.Minebea Electronics Mexico, S.A. DE C.V. | |
|---|---|---|---|
| Location | Fujisawa, Kanagawa Pref. | Connecticut, the U.S.A. | Sonora, Mexico |
| Representative | Motoyuki Niijima | Daniel Lemieux | Sheryl Murphy |
| Capital | 100 million | US$26,703 thousand | M.N. Peso 50 thousand |
| Shareholder and ownership | Minebea Co., Ltd. 100% (direct ownership) | Minebea Co., Ltd. 100% (indirect ownership) | Minebea Co., Ltd. 100% (indirect ownership) |
| Purpose of business | Manufacture and sale of civil engineering & construction-related equipment | Development of switching power supplies | Manufacture and sale of switching power supplies |
| Planned date of liquidation | end of September 2001 | end of March 2002 | end of March 2002 |
Impact of the Liquidation
Losses incurred by each subsidiary were accounted for in the last fiscal year's financial results. Moreover, liquidation losses related to this announcement are estimated at about 80 million and have been included in the forecast of business performance for the current term. Therefore, there will be no impact on the forecast of the current term business performance.
For further information and inquiries, please contact:
Minebea Co., Ltd.
Personnel & General Affairs Department
Representative : Tsugio Yamamoto, President and Representative Director (Code No. 6479 TSE Div. No.1)
Contact Person : Sadahiko Oki, Director and General Manager of Accounting Department
TEL : 03-5434-8611
Product information, contact and other context are subject to change without prior notice.
