World Co., Ltd. Subsidiary Sembommatsu Dyeing Works Co., Ltd., Acquires Operations of Sembommatsu Kezarashi Kogyou Co., Ltd.
World Co., Ltd. has announced that Sembommatsu Dyeing Works Co., Ltd., a wholly owned subsidiary, has acquired the operations of Sembommatsu Kezarashi Kogyou Co., Ltd., effective April 1, 2008.
1. Reason for acquiring these operations
Production sites in the domestic knitwear industry have been operating under severe pressure since much of the knitwear (sweaters, etc.) sold in the domestic market continues to depend on Asian production bases centered on China to reduce costs. On the other hand, maintaining a fast and sophisticated system is vital for supplying products that meet high quality standards in response to customer needs. Therefore, the importance of securing a domestic production base for knitwear has grown.
Sembommatsu Kezarashi Kogyou Co., Ltd. is a leading dyeing company in Japan with dyeing and finishing technologies not previously available from within the World Group. The company particularly boasts a unique stone-wash technology for product dyeing. In November 2007, however, the company was forced to file for bankruptcy protection amid the prevailing business environment described above. World Co., Ltd. subsequently established Sembommatsu Dyeing Works Co., Ltd. as a wholly owned subsidiary to acquire the operations of Sembommatsu Kezarashi Kogyou Co., Ltd. We intend to establish a domestic knitwear production base that will be able to adapt to the rapidly changing market. This base will be centered on our Production Division and operate in collaboration with other World Group companies, including Honda Dyeing Works Co., Ltd.
1. Overview of company acquiring the operations
|(1) Name||Sembommatsu Dyeing Works Co., Ltd.|
|(2) Main business||Fabric and thread dyeing and processing|
|(3) Established||April 1, 2008|
|(4) Main office||(Nakameguro IT Bldg. 3F) 1-8-1 Nakameguro, Meguro-ku, Tokyo|
|(5) Representative||Junichi Honda|
|(6) Capital||¥99.5 million|
|(7) Number of employees||41 (after transfer of operations)|
|(8) Major shareholder and shareholdings||World Co., Ltd. (100%)|
2. Overview of company transferring operations
|(1) Name||Sembommatsu Kezarashi Kogyou Co., Ltd.|
|(2) Main business||Refining and bleaching, dyeing and processing of fabric and thread|
|(3) Established||December 17, 1953|
|(4) Main office||3-6-3 Hatanodai, Shinagawa-ku, Tokyo|
|(5) Representative||Chikako Sembommatsu|
|(6) Capital||¥90 million|