May 16, 2002
Minebea Co., Ltd.
Liquidation of Subsidiaries
We hereby announce that our Board of Directors has resolved at a meeting on May 16, 2002 to liquidate the following two subsidiaries:
1. Background to Liquidation
(1) NMB Air Operations Corp.
We have come to the conclusion that we should cease our DC-10 operation that lasted since 1995. This has led us to the decision to liquidate NMB Air Operations Corp., our U.S. subsidiary that owns the DC-10. Reasons for discontinuing the DC-10 operation are as follows:
Given that materials for manufacturing facilities in Thailand and Singapore,
presently transported from Japan by our DC-10, are expected to be more and more procured locally, a decrease is anticipated in cargo volume to be transported from Japan on the DC-10.
It is about time that, for safety reasons, we replaced the airplane currently in use with a new plane. Since no ready-made plane is available that has a passenger and a cabin compartments similar to those of our DC-10, we need to remodel an airplane into the one with a passenger cabin and a cargo compartment in order to continue our operation of a company-owned plane. And this requires capital investment beyond our break-even point.
(2) NMB Precision Tool & Die (Pte.) Ltd.
NMB Precision Tool & Die (Pte.) Ltd. is a subsidiary in Singapore and produces jigs, tools, and dies for our manufacturing subsidiaries overseas. In order to ensure thoroughly effective management, we have decided to integrate operations of the subsidiary with those of NMB Singapore Ltd., our bearing-manufacturing subsidiary in Singapore. This has brought us to liquidate the subject subsidiary.
2. Outlines of the Subsidiaries to be Liquidated
|(1)NMB Air Operations Corp.||(2)NMB Precision Tool Die (Pte.) Ltd.|
|Location||Nevada, the U.S.A.||Singapore|
|Representative||Gary Yomantas||Rikuro Obara|
|Capital||US$1,300 thousand||S$5,000 thousand|
|Shareholder and ownership||Minebea Co., Ltd. 97.37% (indirect ownership)||Minebea Co., Ltd. 100% (direct ownership)|
|Purpose of business||Leasing corporate airplanes||Production of jigs, tools, and dies|
|Planned date of liquidation||End of September 2002||End of September 2002|
3. Impact of the Liquidation
Losses incurred by each subsidiary were accounted for in the previous fiscal year's financial results. There will be no impact on the forecast of the current term business performance.
|Company Name :||Minebea Co., Ltd.|
|Representative :||Tsugio Yamamoto
President and Representative Director
(Code No. 6479 TSE Div. No.1)
|Contact Person :||Sadahiko Oki
Director and General Manager of Accounting Department
Product information, contact and other context are subject to change without prior notice.