Struggling engineering firm Chiyoda to close Thai subsidiary
BANGKOK, NNA – Major Japanese plant engineering firm Chiyoda Corp. will liquidate its Thai subsidiary as part of its restructuring plans after suffering a massive loss in the last financial year.
The struggling firm said in a statement Friday that Chiyoda (Thailand) Ltd., established in 1990, plans to gain approval for the liquidation at its shareholders meeting in late December and will carry out procedures to shut down the unit.
“There are no ongoing projects in Thailand, and we expect limited chances to undertake them in the future,” Yoshio Kato, a spokesman for the Yokohama-based company, told NNA Friday.
The Thai subsidiary had mainly helped build and expand refineries in the Southeast Asian country but shifted its focus to marketing activities after the 1997 Asian financial crisis. The Japanese headquarters will take over such activities after dissolving the local unit, the statement said.
Chiyoda is receiving a total of 180 billion yen ($1.65 billion) in financial support, such as capital injections and loans, from major Japanese trading house Mitsubishi Corp. and MUFG Bank Ltd., one of three mega commercial banks in Japan, as it booked a 215 billion yen net loss in the business year to March 2019, hit by ballooning costs in a liquefied natural gas plant project in the United States, according to its financial statement.