Kobe Steel Announces Restructuring and Expected Loss
05/31/2013 - Kobe Steel announced that in the first quarter of fiscal 2013, it will post an impairment loss on business assets, in accordance with the decision to reform the structure of the steel business by changing the upstream production system.
Kobe Steel, Ltd. announced that in the first quarter of fiscal 2013, it will post an impairment loss on business assets, which will be taken as an extraordinary loss, in accordance with the decision made at its board of directors’ meeting to reform the structure of the steel business by changing the upstream production system.
Kobe Steel decided to reform the structure of the steel business by changing the upstream production system at its board of directors’ meeting held on 29 May 2013. Upstream production at Kobe Works will be transferred to Kakogawa Works and Kobe Steel plans to shut down the blast furnace and other upstream production equipment at Kobe Works around fiscal 2017.
In accordance with this decision, there are the indications of impairment loss on the abovementioned upstream production equipment at Kobe Works, due to a significant change in the reduction of the recoverable amount. Pursuant to the Accounting Standards for Impairment of Fixed Assets, Kobe Steel recognizes impairment loss on these assets, in considering the recoverability of these assets.
Kobe Steel will post approximately 18.5 billion yen of impairment loss as an extraordinary loss on a nonconsolidated and consolidated basis in the first quarter of fiscal 2013.
