Imasen Electric Industrial's board resolved on 8 October 2026 to consolidate its two Chinese factories into one, moving all production at its Wuhan subsidiary to its Guangzhou subsidiary by the end of March 2027.
What changes on the ground
The Tokyo- and Nagoya-listed seat-adjuster and electronics maker has run its China business through two companies: Guangzhou Imasen Electric and Wuhan Imasen Electric. Both make and sell automotive parts, specifically seat adjusters and electronic units.
After the transfer, the Wuhan company will continue in a reduced form, limited to delivering to customers in the Wuhan area. The transfer is planned, not completed. Imasen says it intends to raise Guangzhou's utilisation rate, hold down fixed costs and lift profitability across its China business as a whole.
The company ties the move to what it calls major changes in China's auto market. It says it had already pursued measures such as adjusting headcount before deciding to concentrate production at one site.
The cost
For the year to March 2027, Imasen expects a special loss of about ¥1.2bn on a consolidated basis. It attributes the charge to disposing of fixed assets made redundant by the restructuring and to site-restructuring costs such as statutory severance-type compensation payments. The company says the figure rests on information available on 8 October and the actual amount may differ.
Imasen says affected Wuhan employees will be handled with the aim of minimising the impact, in line with applicable laws and regulations. The release gives no headcount.
Why the forecast stands
Imasen is leaving its consolidated forecast for the year to March 2027, published with its results on 15 May 2026, unchanged for now. It points to a special gain from selling investment securities, disclosed in a separate release the same day, which it expects to land in the same year and offset the loss. It says it will disclose promptly if changes are expected.
Ownership of the two units
Guangzhou Imasen, set up in December 2001 with registered capital of 74mn yuan, is wholly owned by Imasen. Wuhan Imasen, established in March 2011 with 100mn yuan of capital, is 60% owned by Imasen and 40% by the Guangzhou company.