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Electronics co. to shut plants in Japan
TOKYO, Japan -- Industrial electronics maker Yokogawa Electric Corp. plans to shut down 15 of its 19 factories in Japan, according to a report. The company is undergoing a major restructuring to cut its production costs in half, according to the Nihon Keizai Shimbun. The cuts affect around 1,000 workers, who will be reassigned to other Yokogawa operations, the Nikkei states. The cuts, expected to be completed by March 2004, would leave it with four plants in Japan, as well as export facilities in South Korea, China and Singapore and 13 plants that make products for local markets only. The Tokyo-based company makes monitoring and testing equipment for industrial customers such as drug companies, oil refineries and power plants. It gets around 80 percent of its revenues within Japan, which has been suffering through a prolonged economic downturn. The company has also struggled to keep pace with U.S.-based industry leader Honeywell International. Yokogawa expects the restructuring to boost profits by about 10 billion yen in the 2004 business year, with the amount of products it makes overseas rising to 50 percent of production, from 10 percent now. The company is projecting a net loss of 19 billion yen ($153 million) on total sales of 303 billion yen ($2.4 billion) for the business year through March. Japanese markets are closed Monday for the Sports Day holiday. Yokogawa shares rose 0.15 percent on Friday to close at 665 yen.
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