Ebara Corp. (6361), a 100 year-old Japanese manufacturer, plans to cut a total of 90 jobs at its unit that makes pumps and refrigeration machinery by the end of March as domestic demand stagnates.
“Given the growth markets for both pumps and refrigeration operations are outside Japan, the company is transforming the business structure to tap growth,” Japan’s biggest pumps maker said in a statement yesterday.
Ebara’s fluid machinery unit, which also makes turbines and compressors, accounts for about 70 percent of its near-15,000 staff. The company expects the unit’s operating profit to fall 9.7 percent to 14 billion yen ($157 million) in the year ending March 31, it said in November.
The job cuts will come via early retirement and voluntary retirement incentives, it said.
Ebara, founded in 1912, produced Japan’s first domestically built water pumps in 1925 and expanded operations into compressors, turbines and garbage incinerators between the 1950s and 1970s, according to its website. It has since diversified operations to build semiconductor-making equipment.
Ebara rose 1.1 percent to 371 yen as of 9:27 a.m. on the Tokyo Stock Exchange. The stock has risen 39 percent in the past 12 months, compared with a 48 percent increase in U.S. rival Flowserve Corp. (FLS)
To contact the reporter on this story: Masumi Suga in Tokyo at firstname.lastname@example.org
To contact the editor responsible for this story: Jason Rogers at email@example.com