YKK AP to Close 11 Architectural Product Plants along New Mid Plan

YKK AP announced its new mid-term management plan starting in April 2009 on Tuesday, along which the firm targets consolidated net sales at 625 billion yen, operating profit at 50 billion yen, net profit at 33 billion yen and ROA (Return on Asset) at 4.2% in fiscal 2012 ending March 2013. As to the architectural products division, YKK AP plans drastic optimizing plan with cost saving effect of 19.8 billion yen toward fiscal 2012, including integration of productive sites to 24 from current 34.

The firm aims net sales at 362.7 billion yen and operating profit at 18.9 billion yen for the architectural products division in fiscal 2012. The firm launches 4 basic strategies that are 2nd-phase restructuring of domestic architectural products business, base establishment for window business, expansion for overseas architectural products business and cultivation of global facade business.

Cost saving effect of 19.8 billion yen in architectural products division comes from plant reorganization (1.9 billion yen), logistic optimization (4.1 billion yen), restructuring of sales activities (2.6 billion yen) and cost cut by productivity improvement (11.2 billion yen). The firm will close actually 11 plants while open a new plant in Saitama, Japan during 4 years.

Meanwhile, YKK AP aims to increase annual revenue of “APW,” the firm’s original bland for high grade windows, to 10 billion yen in fiscal 2012. As to overseas architectural products business, the firm eyes such markets as USA, China, Taiwan, Indonesia and Brazil. The firm targets to increase overseas revenue by 40% to 63 billion yen in fiscal 2012 from fiscal 2008 including global facade business.