Struggling Akebono Brake to Close 6 Plants

Tokyo, Sept. 18 (Jiji Press)--Embattled Japanese auto parts maker Akebono Brake Industry Co. said Wednesday that it will close six plants at home and abroad to rebuild its business.　 The plant closures are part of the company's turnaround program that was accepted at a meeting of its creditors the same day. They also approved the firm's request for 56-billion-yen debt forgiveness to reduce its interest-bearing liabilities. Akebono Brake will shutter its plant in Soja, Okayama Prefecture in western Japan, three plants in the United States, and one each in France and Slovakia by the end of June 2024, when the restructuring plan is slated to conclude. Production at its plant in Kori in the northeastern Japan prefecture of Fukushima will be scaled back. The some 500 workers at the Okayama plant and part of the some 300 personnel at the Fukushima factory will be relocated to other bases of the company. It will also close research and development centers in Britain and Germany. Akebono Brake has been rebuilding itself under an out-of-court restructuring process known as alternative dispute resolution since January. It is slated to receive 20 billion yen in investment from a corporate restructuring fund on Sept. 30 to put the rehabilitation plan into action. The company hopes to turn its business around early partly by strengthening sales of high-performance brakes in China, where demand growth is expected. Akebono Brake will hold an extraordinary shareholders meeting on Sept. 27 to seek approval for the capital replenishment plan and the installation of the incoming management team to replace Chairman and President Hisataka Nobumoto and other directors, who will resign to take responsibility for the company's financial woes. Yasuhiro Miyaji, a former executive of major Japanese motor maker Nidec Corp., is slated to become new Akebono Brake president. END