According to local Japanese sources, Japanese large stainless steel manufacturer Tokyo-based Takasago Tekko Co. Ltd. will withdraw from stainless cold rolling business by the end of 2009.
Accordingly, the company is planning to reduce its fixed cost around JPY 1.4 billion (US$14.5 million) per year by removing its two cold rolling mills, continuous annealing and pickling facilities, continuous bright annealing facilities and related facilities.
In addition, Takasago Tekko will lay off around 70 of its employees by early retirement and transferring to group companies.
The company aims to focus the resources on surface treated products including embossment, polishing, plating and high precision pipe and precise processing products while it will purchase the cold rolled products from third parties.
Takasago Tekko's main shareholders are Japanese steelmakers Nippon Steel, Sumikin Stainless Steel Corp. and Mitsui & Co., Ltd.
In FY 2008, the company has posted net loss of JPY 2.02 billion (US$21 million), registering its net income down by 51.6 percent compared to the previous year.