Nikkiso halts Japan medical factory project, boosts overseas production

Nikkiso Co., Ltd. has decided to cancel its planned construction of a new factory in Miyazaki, Japan, for blood tubing lines, a project initially announced in November 2021. The decision follows a reassessment due to escalating construction material costs and revised automation plans, leading to projected capital expenditures exceeding initial estimates.

The company is refocusing on its overseas production network. Nikkiso's existing facilities in Bangkok, Thailand, and Ho Chi Minh, Vietnam, have increased inventory for the Japanese market and solidified stable production. Additionally, the Quang Ngai, Vietnam, facility completed installation of manufacturing and sterilization equipment for the Japanese market, securing partial amendments to its marketing certification to support this new export system.

This strategic shift aims to ensure a stable supply of high-quality products to Japan through enhanced overseas operations. Nikkiso expects the cancellation to have a negligible impact on its consolidated financial results for the fiscal year ending December 31, 2025, with no revisions to full-year forecasts.