Saitama Murata Manufacturing (formerly: TOKO, INC.), a wholly-owned subsidiary of Murata Manufacturing Co., Ltd. (hereafter: the Company), is closing its production subsidiary Sheng Long TOKO Tech in December 2020.
Saitama Murata Manufacturing Group (formerly: TOKO Group) has contributed primarily to the development of the telecommunications market through its design and production of coil products. Due to the diversification of market needs in major markets, such as smartphones, combined with the acceleration of the development cycle and intensifying competition, Sheng Long TOKO Tech is facing a difficult business environment, including decreased demand and intensifying price competition. Given all of these factors, the Company has decided to end production at this subsidiary and close it. Going forward, the entire Murata Manufacturing Group will strive to build improved production capabilities and stronger management structures.
The impact on the Company’s performance this fiscal year due to the closing of these production subsidiaries is negligible.