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Announcement of Organizational Restructuring within the TDK Group

Jun. 17, 2016

TDK Corporation (“TDK”) announces that its Board of Directors resolved at a meeting held on June 17, 2016 to restructure its organization (the establishment of a new subsidiary and the acquisition of three subsidiaries by the new subsidiary) as follows.
As this restructure involves only TDK’s wholly owned subsidiaries and will be carried out within the TDK Group, some of the items and content for disclosure have not been included in this announcement.

1. Purpose of organizational restructure within the TDK Group

The passive components business is TDK’s key business, and TDK aims to further increase profits by expanding its businesses to include fast-growing fields. The passive components business currently manufactures most of its products in the Akita district, and TDK has decided to carry out this restructuring to utilize technologies and human resources within the group to achieve increased competitiveness and technological improvement, as well as to create a robust base that can continuously generate profit.
The restructuring will involve the establishment of a new subsidiary and the acquisition of three existing subsidiaries by the new subsidiary.

2. Outline of the newly established subsidiary

(1) Name TDK Akita Corporation
(2) Location Yurihonjo City, Akita
(3) Representative Ryuji Hayashi (President)
(4) Business Manufacture of passive components
(5) Capital 200 million yen
(10 million yen at the time of establishment)
(6) Date of establishment December 7, 2016
(7) Equity ratio TDK-EPC Corporation*1: 100%
(8) Net sales 83,340 million yen (the sum of net sales of the three subsidiaries for the fiscal year ended March 31, 2016)

*1: TDK-EPC Corporation is a wholly owned subsidiary of TDK.

3. Outline of the subsidiaries to be transferred

(1) Name TDK-MCC Corporation TDK Ugo Corporation TDK Yurihonjo Corporation
(2) Business Manufacture of
passive
components
Manufacture of
passive
components
Manufacture of
passive
components
(3) Date of establishment June 1, 1971 January 30, 1970 June 8, 1985
(4) Location 151 Aza Maeda, Hirasawa,
Nikaho City, Akita
146-1 Aza Haraikawa, Ohuchi-Sankawa,
Yurihonjo City, Akita
16-57 Aza Yamanokami, Ishiwaki,
Yurihonjo City, Akita
(5) Capital 1,000 million yen 106 million yen 110 million yen
(6) Total assets 16,449 million yen 25,294 million yen 5,346 million yen
(7) Major shareholders and their percentages of holdings TDK-EPC Corporation: 99% TDK-EPC Corporation: 100% TDK-EPC Corporation: 100%

4. Schedule

(1) Resolution of Board of Directors June 17, 2016
(2) Establishment of new company December 7, 2016
(3) Date of merger
(effective date)
April 1, 2017 (Planned)

5. Outlook

This restructuring is projected to have no impact on TDK’s consolidated results for the fiscal year ending March 31, 2017.

(Reference) TDK’s Consolidated Forecasts for the Fiscal Year Ending March 31, 2017 (as of April 28, 2016) and Results for the Previous Fiscal Year
(Million yen) Net sales Operating income Income
before
income taxes
Net income attributable to TDK
Forecasts for the year ending March 2017 1,160,000 74,000 73,000 50,000
Results for the year ended March 2016 1,152,255 93,414 91,839 64,828

Contact for media

Contact Phone Mail
Mr. Sumio Marukawa TDK Corporation +81 3 6778-1055 pr@jp.tdk.com

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