Japan Flash

March 19, 2009, Yamaha announced a business restructuring by closing piano factory plant in UK and Taiwan. They have been produced large number of piano for the world. As an effect of global crisis, piano production in UK and Taiwan dropped significantly and they choose to close it’s plant in UK and Taiwan. They will focus it’s production based on it’s plant in Indonesia and China. They also announced withdrawal from unprofitable business, such as magnesium molding components for digital SLR camera.

In March 2009, Yamaha got a special loss of 23.6 billion yen from fixed asset impairment losses and restructuring costs. That’s made overall loss expected to be around 23 billion yen. Yearly dividend is expected to reduced by 7.5 yen to 42.5 yen. All executives will give back their compensation and managers will get a 5% salary reduction start from April 2009.

Manufacturing subsidiaries in Taiwan will stop production in July 2009 and plans to liquidate the company in March 2010. Declining demand in Taiwan made piano production is only 3600 piano a year, less than half of the peak in 1980s that forced them to end their role in Taiwan.