December 3, 2007
Nisshinbo Announces Plan to Switch to Holding Company System
November 29, 2007
Nisshinbo Industries, Inc, announced today that its Board of Directors had decided at a meeting that, on condition of approval at a general meeting of shareholders it will commence preparations for a shift to a holding company system by means of a company split-up. The change is scheduled to take effect on April 1, 2009.
The Nisshinbo Group has been pursuing management reforms and the enhancement of corporate value in accordance with the basic management policy of “reform and growth.” Regarding the management setup, an outside director system and a managing officer system have already been introduced with the aim of increasing transparency and speeding up decision making.
In addition, Nisshinbo is endeavoring to concentrate management resources in promising businesses and is in the process of implementing reforms designed to enhance corporate value, such as the integration of the chemical products and business development, which share the same technological bases.
In order to further enhance corporate value, it has now been decided that the holding company system is the optimum form of management for the group, the principal characteristic of which is its diversity.
Details of the group’s management setup following the switchover to a holding company system and the functions of the holding company itself will be announced promptly as soon as their disclosure becomes possible.
The following is a summary of the Board of Directors’ decision:
1. Objectives of shift to holding company system
(1) Strengthening of group management centered on holding company
We will endeavor to enhance the corporate value of the group as a whole by means of strategic management that takes into consideration a balance between what is best for the group as a whole and what is best for each individual business.
(2) Strengthening of competitiveness of each business through active business operations responding to the business environment
We will realize the improvement of management efficiency and achievement of the optimum cost structure and strengthen the competitiveness of each individual business by implementing active operations in response to the business environment of each business, clarifying responsibility and authority in each business, and speeding up decision making.
(3) Realization of self-contained business operations through business reorganization
With the newly established companies as the core enterprises, we will accelerate business reorganization within the group, including our already existing subsidiaries, and endeavor to enhance the corporate value of each business through self-contained business operations.
2. Implementation dates
Late June 2008: Approval of corporate split-up resolution at regular general meeting of shareholders
April 1, 2009 (scheduled): Change to holding company system
3. Corporate split-up format
The scheduled format is to establish Nisshinbo Industries as the holding company and split up the present businesses of textiles, precision instrument & machinery, brakes, chemicals, and paper products into individual business companies.
Regarding the electronics business, our subsidiary, New Japan Radio Co., Ltd., will continue to play the central role in its operation.
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