Murata Manufacturing Co., Ltd. announced that its wholly-owned subsidiary Saitama Murata Manufacturing (formerly: TOKO, INC.) will close its production subsidiary Shenglong TOKO Tech in December 2020.
Saitama Murata Manufacturing Group has contributed primarily to the development of the telecommunications market through its design and production of coil products.
Murata said in the announcement that due to the diversification of market needs in major markets, such as smartphones, combined with the acceleration of the development cycle and intensifying competition, Sheng Long TOKO Tech is facing a difficult business environment, including decreased demand and intensifying price competition. Given all of these factors, the Company has decided to end production at this subsidiary and close it. Going forward, the entire Murata Manufacturing Group will strive to build improved production capabilities and stronger management structures.
Murata emphasized that the impact of closing these production subsidiaries on the company's performance this fiscal year is negligible.