Futaba to Halt Operations at Struggling Korean Mold Base Subsidiary

Futaba ( (JP:6986) ) has shared an announcement.

Futaba Corporation has resolved to suspend the business operations of its consolidated Korean subsidiary, WONJIN PRECISION Co., Ltd., which manufactures and sells mold bases for production equipment in Incheon, South Korea. The decision follows prolonged difficulties in securing labor, pandemic-driven economic deterioration, limited production equipment capacity, and intensifying competition from low-priced Chinese mold bases, all of which hindered order intake and prevented the establishment of a sustainable production system despite capital injections, facility upgrades, and relocation to a new plant in recent years. WONJIN, a 60.9%-owned consolidated subsidiary with 35 employees and no direct trading relationship with Futaba itself, is scheduled to cease operations by the end of January 2026, marking Futaba’s withdrawal from this particular segment of the Korean mold base market after repeated turnaround efforts failed to achieve stable profitability.

The most recent analyst rating on (JP:6986) stock is a Hold with a Yen599.00 price target. To see the full list of analyst forecasts on Futaba stock, see the JP:6986 Stock Forecast page.

More about Futaba

Futaba Corporation is a Japanese manufacturer listed on the Tokyo Stock Exchange Prime Market (securities code 6986), operating through consolidated subsidiaries in sectors such as industrial and production equipment components. Through group companies like WONJIN PRECISION in South Korea, Futaba has been involved in manufacturing and selling mold bases and other production equipment products to support industrial manufacturing supply chains in Asia.

Average Trading Volume: 152,793

Technical Sentiment Signal: Sell

Current Market Cap: Yen24.01B

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