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© dr911 dreamstime.com Components | December 01, 2015

Renesas plans to close its Kochi manufacturing facility

Renesas Electronics has decided on a policy of consolidation for the Kochi Factory of its subsidiary Renesas Semiconductor Manufacturing.
Under this consolidation policy, the factory is to be closed within the next two to three years, and production of the products currently being manufactured there will be transferred to other facilities within the Renesas Group or, in the case of some products, phased out.

Back in August, 2013, Renesas Electronics indicated its intention with regards to the Kochi Factory to “continue production, downsizing to be appropriate scale.” However, after re-examining the present production load situation and the likely future production load, the company has concluded that the production load will be less than was initially anticipated and that maintaining the profitability of the Kochi Factory will be problematic.

The company has made efforts to boost production efficiency at the Kochi Factory and has also tried to find another company willing to purchase it, however, at present there appears to be no way to compensate for the reduction in the production load, the company states in a press release.

Negotiations are planned between labor and management regarding the treatment of the factory’s employees during and after the consolidation.
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