Sodick announces a medium-term management plan to target 90.7 Billion Yen sales and 5.5 Billion Yen net profit by 2026, focusing on structural reforms and overseas production review.

Japan, Feb 14, 2024 - Sodick announced a new medium-term management plan, aiming for sales of 90.7 billion yen in the fiscal year ending December 2026 (compared to 67.1 billion yen in the fiscal year ending December 2023) and a net profit of 5.5 billion yen (compared to a loss of 4.6 billion yen in the same period). The company plans to achieve this by implementing structural reforms to reduce fixed costs, including a review of overseas production.

The structural reforms involve consolidating the production of machine tools from the Suzhou factory in Jiangsu province, China, to the Xiamen factory in Fujian province, and transferring the production of injection molding machines from the Xiamen factory to the Kaga factory in Japan (located in Kaga city, Ishikawa prefecture). Additionally, some production, mainly machine tools for Japan, from the Thailand factory in Pathum Thani province, will also be transferred to the Kaga factory.

To support these changes, the company will reduce its workforce by 198 employees across the three factories in China and Thailand and cut personnel costs at its head office by approximately 1 billion yen annually. By expanding domestic production, Sodick aims to optimize its production system across its three bases, including China and Thailand, reduce its reliance on China for sales and production, and increase its resistance to exchange rate fluctuations.

Furthermore, the company plans to invest approximately 11 billion yen in equipment and research and development over the three years ending in December 2026. Sodick aims to achieve growth by expanding into new businesses, such as laser processing machines.