Nikon to dissolve a consolidated Chinese manufacturing subsidiary of imaging business
Editor’s Note: This is a follow-up to the Oct. 30, announcement Nikon was going to close its Wuxi plant due to the increase in smartphone sales. Earlier this week, Olympus also announced the closure of China camera plant.
Nikon Corporation (Nikon) has announced at the Board of Directors’ Meeting held today the resolution that we will begin conducting relevant dissolution and liquidation procedures of consolidated subsidiary Nikon Imaging (China) Co., Ltd.
1. Reason for Dissolution
As announced in “Nikon to Discontinue Operations of a Consolidated Chinese Manufacturing Subsidiary of Imaging Business” released on October 30, 2017, Nikon Imaging (China) Co., Ltd. (NIC) discontinued its operations.
Nikon has decided to begin conducting relevant dissolution and liquidation procedures of NIC due to the process completion such as manufacturing transfer after its discontinued operations.
2. Overview of Nikon Imaging (China) Co., Ltd.
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(1)Company name |
Nikon Imaging (China) Co., Ltd. |
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(2)Address |
No. 11, Changjiang South Road, New District, Wuxi, Jiangsu 214028, China |
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(3)Representative |
Chairman of Board of Directors General Manager, Hideyuki Akimoto
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(4)Main business |
Manufacture of digital cameras and lens units for digital cameras |
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(5)Stated capital |
US$ 32,000,000 (as of September 30, 2017) |
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(6)Date Established |
June 14, 2002 |
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(7)Major shareholders and shareholding ratios |
Nikon Holdings Hong Kong Limited 100%(Note 1) |
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(8)Relationships between Nikon and NIC
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Capital Relationship |
NIC is a consolidated subsidiary indirectly funded by Nikon |
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Personnel Relationship
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Nikon loaned out employees to serve as directors of NIC |
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Trade Relationship |
Nikon and NIC hold a product trading relationship |
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Status as a Related Party |
NIC is a consolidated subsidiary of Nikon, a party of concerned of Nikon |
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Note: Nikon Holdings Hong Kong Limited is a wholly-owned subsidiary of Nikon
3. Schedule of Discontinued Operations and Dissolution
On October 30, 2017, Nikon made a board resolution to discontinue operations of NIC.
On May 18, 2018, Nikon made a board resolution to begin conducting relevant dissolution and liquidation procedures of NIC.
4. Impact on Business Results
The expenses related to dissolve NIC in this fiscal year are estimated to be approximately 2 billion Yen, and the expenses have been reflected in the consolidated financial forecast for the year ending March 31, 2019, announced on May 10, 2018.