Japanese printing firm Sanko Sangyo to stop Vietnam sales, Thai plant due to blow from COVID-19
HANOI, NNA – Japanese printing firm Sanko Sangyo Co. plans to shut down its sales subsidiary in Vietnam and a factory in Thailand by year’s end as the COVID-19 weakens the business climate.
Sanko Sangyo made the decision at a board meeting Tuesday, the company said in a statement released then.
The Tokyo-based company plans to dissolve Sanko Sangyo (Vietnam) Co., a wholly owned subsidiary, on Dec. 31 and complete liquidation three months later. The affiliate, founded in Hanoi in February 2018 as Sanko Sangyo’s marketing hub in Vietnam and capitalized at $265,500, sells seals, labels and panels.
The printing firm will transform its wholly owned subsidiary Sanko Sangyo (Bangkok) Co. into a sales company after closing its Thailand factory. Sanko Sangyo’s Thai subsidiary was established in May 2015 and is capitalized at 20 million baht ($635,000).
Sanko Sangyo expects a special loss from the liquidation of its Vietnam subsidiary and closure of its Thailand plant, according to the statement.
The decision is part of Sanko Sangyo’s effort to retool its growth strategy amid signs that the pandemic will persist, the company said in the statement.
Future demand remains unclear as the factory is not fully operating and some corporate clients are being forced to suspend operations at plants due to the virus spread, the statement says.