Kuraudia Holdings, the Japanese wedding-dress maker, had its board resolve on August 25 to shut down the Qingdao factory run by its wholly owned Chinese manufacturing subsidiary, ending nearly 30 years of production there since the plant opened in May 1995.
The company blames rising Chinese labor and production costs, plus an aging and shrinking workforce at the plant, for the decision. It judges that closing the site will not threaten its supply chain or quality control, because a second overseas factory has been running since December 2008: VIETNAM KURAUDIA CO., LTD. in Ho Chi Minh City. That plant now becomes Kuraudia's primary production base, with the company saying it plans to expand and streamline wedding-dress output there.
The closure carries two separate ¥170mn-scale charges, not one. On the consolidated side, Kuraudia expects to book roughly ¥170mn as an extraordinary business restructuring loss for the fiscal year ending August 2026, covering severance payments to Qingdao employees and inventory write-downs. Separately, on an unconsolidated basis, Kuraudia is injecting $1,050,000 (about ¥170mn, roughly 7 million yuan) into the Qingdao subsidiary in September to fund the wind-down; that capital injection itself gets booked as a subsidiary-support-loss provision in Kuraudia's standalone accounts, and the company will also record an impairment on its stake in the subsidiary once the injection completes.
Kuraudia says the Qingdao unit's sales, roughly ¥257mn in the period it last reported, went entirely to other companies inside the Kuraudia group, so the closure will not reduce group revenue. The Qingdao subsidiary will begin studying how to dispose of its leasehold interests and buildings and work toward liquidation. Kuraudia says its full-year consolidated earnings forecast is still under review and it will disclose updates as they become available.