NISSEI ASB MACHINE, the Nagano-based maker of plastic-bottle blow-molding equipment, used a same-day TDnet filing to rebut a Shinano Mainichi Shimbun report that blamed cooling demand for its decision to freeze a planned new factory in Saku City. The newspaper's September 15 story ran under headlines saying demand for plastic containers had settled down, framing that as the reason for the freeze. The article itself also stated that demand for plastic-container molding machines had not risen as much as expected. The company said neither framing matches what it has actually announced.
Global demand for its molding machines remains strong and results are solid, the company said, adding that demand weakness played no part in the freeze. Instead, management pointed to a sharp rise in construction-material prices and labor shortages that lengthened build times, making it extremely difficult to open the plant on the original schedule and budget. Extending the construction deadline while the prospects for commercializing the project remained uncertain would inconvenience Saku City and other stakeholders, the company said, so it froze the plan and requested a buyback of the land.
The freeze will not affect current-period consolidated earnings, the company said. It is separately carrying out a large equipment investment at its Indian subsidiary, announced August 6, to meet strong global demand for its molding machines.