Sanken moves to Indonesia

Sanken moves to Indonesia

TOKYO (Dow Jones): Sanken Electric Co., a leading Japanese maker of power sources and semiconductors, said Wednesday that it will liquidate a converter production unit in Japan and will transfer production to its unit in Indonesia.

Sanken has been mass-producing a converter called Switching Mode Power Supply (SMPS), used in office automation equipment, at its Japanese unit Ogoze Sanken. However, Sanken will liquidate the unit by the end of this year in a bid to scale down manufacturing costs, the company said. Production will be transferred to P.T. Sanken Indonesia, which is currently producing AC adaptors in addition to SMPS.

The company said the planned liquidation will cause a parent- only special loss of Y1.22 billion for the current fiscal year ending March 2000. But a return from loan-loss reserves and efforts to streamline operations will help offset the negative impact, the company said.

Sanken Electric kept its earnings outlook for this fiscal year unchanged.