11th
December 2007 - Nisshinbo
Announces Plan to Switch to Holding Company System
Nisshinbo
Industries, Inc, announced on 29th November 2007 that its Board of
Directors had decided at a meeting that, on condition of approval at a
general meeting of shareholders it will commence preparations for a
shift to a holding company system by means of a company split-up. The
change is scheduled to take effect on April 1, 2009.
The Nisshinbo Group has been pursuing management reforms and the
enhancement of corporate value in accordance with the basic management
policy of “reform and growth.” Regarding the management setup, an
outside director system and a managing officer system have already been
introduced with the aim of increasing transparency and speeding up
decision making.
In addition, Nisshinbo is endeavoring to concentrate management
resources in promising businesses and is in the process of implementing
reforms designed to enhance corporate value, such as the integration of
the chemical products and business development, which share the same
technological bases.
In order to further enhance corporate value, it has now been
decided that the holding company system is the optimum form of
management for the group, the principal characteristic of which is its
diversity.
Details of the group’s management setup following the switchover to
a holding company system and the functions of the holding company itself
will be announced promptly as soon as their disclosure becomes possible.
The following is a summary of the Board of Directors’ decision:
| 1. |
Objectives of shift to
holding company system |
|
. |
(1) Strengthening of group management centered on holding company
We will endeavor to enhance the corporate value of the group as a
whole by means of strategic management that takes into consideration
a balance between what is best for the group as a whole and what is
best for each individual business |
|
. |
(2) Strengthening of competitiveness of each business through active
business operations responding to the business environment
We will realize the improvement of management efficiency and
achievement of the optimum cost structure and strengthen the
competitiveness of each individual business by implementing active
operations in response to the business environment of each business,
clarifying responsibility and authority in each business, and
speeding up decision making |
|
. |
(3) Realization of self-contained business operations through business
reorganization
With the newly established companies as the core enterprises, we
will accelerate business reorganization within the group, including
our already existing subsidiaries, and endeavor to enhance the
corporate value of each business through self-contained business
operations |
| 2. |
Implementation dates |
|
. |
Late June 2008: Approval of corporate split-up resolution at regular
general meeting of shareholders |
|
. |
April 1, 2009 (scheduled): Change to holding company system |
| 3. |
Corporate split-up
format |
|
. |
The scheduled format is to establish Nisshinbo Industries as the holding
company and split up the present businesses of textiles, precision
instrument & machinery, brakes, chemicals, and paper products into
individual business companies. |