Japan Display Inc. (JDI) has outlined its structural reform efforts as the struggling company it trying to further reduce fixed costs.
Apple's LCD supplier has decided to suspend operations at its Hakusan Plant (Ishikawa-site, Hakusan-shi, Ishikawa Prefecture), and close the back-end production line in the Mobara Plant (V2 line, Mobara-shi, Chiba Prefecture). The company is also seeking to accelerate voluntary early retirements in Japan, reduce the number of employees at its overseas sales offices, and transfer certain employees to JOLED Inc. ("JOLED").
The company had disclosed plans to suspend operations in the specific plants in June 12, 2019. At that time, JDI said it would suspend operations at the Hakusan Plant, one of the production sites that produce displays for smartphones, and that would decide whether it would re-start production based on customer demand. Today, JDI does not anticipate an increase in demand sufficient to generate profits from the resumption of operations.
In addition, JDI is currently holding discussions with Harvest Tech Investment Management Co., Ltd., with which JDI entered into a Memorandum of Understanding on April 12, 2019, toward formulating and implementing a business alliance with respect to a plan for the mass production of evaporation OLED displays, JDI says that Harvest Tech has proposed the utilization of JDI's Hakusan Plant to mass produce OLED displays in the future. In light of these circumstances, JDI has decided to suspend the Hakusan Plant’s operations for the time being.