Japan’s Terasaki Electric resumes Malaysian plant, expects limited business impact
KUALA LUMPUR, NNA – Terasaki Electric Co. has resumed operations at its circuit breaker manufacturing and sales units in Malaysia after their suspension since mid-March due to spread of the novel coronavirus.
The Ministry of International Trade and Industry granted Selangor-based Terasaki Electric (M) Sdn. Bhd. and Terasaki Electric Trading & Services (M) Sdn. Bhd. permission on April 22 to resume operations. The two units had applied seven days earlier for the go-ahead, the company said on Monday.
Terasaki, headquartered in Osaka, had initially announced that its two subsidiaries would suspend operations from March 18 to 31 in response to Movement Control Order enforced by the Malaysian government, the Japanese firm said. The suspension was prolonged after the government extended the travel restriction thrice.
Terasaki Electric (M) is a company hub for production of circuit breakers, a spokeswoman at Terasaki’s headquarters said. The output sells in Malaysia and is exported to Japan, and Europe among other regions. Terasaki Electric Trading & Services (M) markets circuit breakers mainly in Malaysia.
During the suspension, employees at the two affiliates have been paid while at home, the spokeswoman said.
The company has no plan to revise its earnings estimate for the business year ending in March 2020 due in mid-May, it said in a statement Monday. Impact from the suspension on the Malaysian subsidiaries should be light, the company says, but the disease outbreak could hurt overall group performance.
Terasaki’s Asia sales increased 25.3 percent to nearly 8.2 billion yen in the year through March 2019. Sales of marine systems and engineering services posted year-on-year increases while those of machine products decreased due largely to the sluggish Malaysian market.