News Room 2020
UACJ to Transfer Business of All-Aluminum Heat Exchangers for the Outside Units of Cooling-Only Air Conditioners
October 5, 2020
UACJ Corporation (Headquarters: Chiyoda-ku, Tokyo; Representative Director & President: Miyuki Ishihara) has decided to transfer its business of manufacturing and selling all-aluminum heat exchangers for the outside units of cooling-only air conditioners (the PF heat exchanger business) in Thailand, as described below.
1. Reasons for and Background to the Business Transfer
UACJ Group company UACJ MH (Thailand) Co., Ltd. (UMHTH) entered the PF heat exchanger business in Thailand in 2013, anticipating that the business would grow. These heat exchangers were produced by UACJ Extrusion (Thailand) Co., Ltd. (UEXTH), as well as on consignment by CH. WATANAYONT Co., Ltd. (CHW), and sold to air conditioner manufacturers operating in Thailand.
However, market growth has slowed, and stringent price competition from other companies has been significantly greater than we had anticipated. Accordingly, business profit worsened, and we determined that it would be difficult to improve profitability going forward. Accordingly, in September 2020 we entered into a business transfer agreement with CHW. In line with this agreement, we are gradually transitioning production of individual products to CHW. Once the transition is complete, we plan to liquidate UMHTH in September 2021.
This decision is a priority measure described in the “implementation of structural reforms” announced on September 30, 2019 and is one example of our efforts targeting business selection and concentration.
2. Overview of Business to Be Transferred and Subsidiary to Be Liquidated
| Products | Parallel-flow-type all-aluminum heat exchangers using aluminum flat multicavity tubes and corrugated fins |
|---|---|
| Applications | Heat exchangers for the outside units of cooling-only air conditioners |
| Production base | UEXTH’s Prachinburi plant |
| Production capacity | Not disclosed |
Overview of Subsidiary to Be Liquidated
| Name | UACJ MH (Thailand) Co., Ltd. |
|---|---|
| Location | No.689 Bhiraj Tower at EmQuartier 26th FL., Room No.2602-2608, Sukhumvit Road, Klongton Nue, Wattana, Bangkok 10110 |
| Representative | Shuji Arakawa |
| Business | Sale of all-aluminum heat exchangers for air conditioners, newly processed products |
| Capital | 100,000,000 baht |
| Established | April 2013 |
| Employees | Five |
| Parent company and ownership | UACJ Corporation, 100％ |
3. Overview of Company to Which Business Is to Be Transferred
| Name | CH. WATANAYONT Co., Ltd. |
|---|---|
| Location | 7/1 G.14 Kingkaew Rd., Rachathava, Bangplee, Samutprakarn, 10540, Thailand |
| Representative | Suchai Pongvatnanusorn |
| Business | Manufacture of automotive parts and various types of heat exchangers |
| Established | July 1992 |
4. Future Schedule
- March 2021
- Discontinuation of PF heat exchanger production at the Prachinburi plant following the transfer to CHW
- September 2021
- Liquidation of UMHTH complete
5. Impact of Operating Performance
We are currently investigating the impact of this business transfer on the Group’s consolidated operating performance for the current fiscal year.