JDI considers shutting down some factories in Japan
According to Kyodo News Agency on May 31, JDI, a small and medium-sized LCD panel giant under restructuring, has been considering shutting down the Baishan factory (Baishan City, Ishikawa Prefecture) that manufactures smartphone LCD panels for several months. The downturn in demand from major customers, Apple Inc., has worsened startup rates, a move aimed at cutting fixed costs.
Baishan factory will face the production of apples by Maoyuan factory and so on. The shutdown will be implemented as soon as June, but it will remain in a state where production can be restored immediately according to demand.
JDI announced in May that it would raise 1,000 early retirees in China. Details of the structural reform plan are planned to be announced in the near future, and the decision to shut down the plant is expected to be announced at the same time.
JDI's consolidated financial report for fiscal year 2018 (April 2018 to March 2019) showed a net profit loss of 109.4 billion yen (about 6.9 billion yuan). The special loss of about 75 billion yen due to the shrinkage in the value of Baishan plant's assets due to the decline in start-up rate has had an impact.
