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Murata to cease production at several subsidiaries
Saitama Murata Manufacturing – previously Toko, Inc. – a wholly-owned subsidiary of Murata Manufacturing is ceasing production at its production subsidiaries Shantou S.E.Z. Huajian Electronics and Hua Jiuh Technology by the end of 2019.
Saitama Murata Manufacturing Group has contributed primarily to the development of the telecommunications market through its design and production of coil products. However, due to a diversification of market needs in major markets such as the smartphone market in recent years, an acceleration of the development cycle, and intensifying competition with overseas manufacturers, it is facing a difficult business environment. Shantou S.E.Z. Huajian Electronics and Hua Jiuh Technology in particular are experiencing factors such as decreased demand and intensifying price competition, and the Murata has decided to end production at these subsidiaries and close them. Following this, the entire Saitama Murata Manufacturing Group aims to build stronger production and management structures. Murata says that impact on the its performance this fiscal year due to the closing of these production subsidiaries is negligible
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