Gunze plans exit from Taiwanese touch-screen film ops
Japanese group eats $22.5m in losses from departure, focuses on apparel
OSAKA -- Gunze will end its Taiwanese touch-panel film operation by the end of September, as the Japanese textile group waves the white flag after nine years amid growing price competition from newcomers.
The multinational intends to rebuild earnings capacity by focusing resources on its core apparel business. Gunze will book about 2.6 billion yen ($22.5 million) in extraordinary losses for the fiscal year ending March 31 due to the exit, mainly in fixed-asset impairments.
Gunze also said Friday it will record around 1.8 billion yen in capital gains from selling a building in Tokyo. The company is scrutinizing how these moves will impact group earnings.
The group manufactures and markets touch panels in China and other locations, but sales have slumped recently. Gunze will reorganize Chinese operations by pivoting from consumer products to business-to-business sales and by trimming the workforce, among other measures.