Fukoku Restructures Indonesia Operations Through PT TRIM RUBBER Business Transfer

Fukoku Co., Ltd. announced on June 19, 2026, that it will reorganize its business operations in Indonesia through the transfer of activities from PT. TRIM RUBBER (TRIM) to PT. FUKOKU TOKAI RUBBER INDONESIA (FTR). The decision forms part of the company’s broader effort to streamline its presence in Indonesia and improve operational efficiency. Following the business transfer, TRIM will enter the dissolution and liquidation process, marking a significant step in the company’s internal organizational restructuring strategy.

Business Transfer to Strengthen Operational Efficiency

The restructuring plan was driven by the assessment that TRIM’s relatively small business scale could restrict future growth opportunities. To address this challenge, Fukoku decided to consolidate operations under FTR, which already serves as a major subsidiary within its Indonesian business network. Through this integration, the company aims to create a more efficient operating structure while maintaining continuity in manufacturing and sales activities associated with automotive hose products.

Assets and Operations Included in the Transfer

The business transfer covers automotive hose manufacturing and sales operations currently managed by TRIM. Related production equipment and associated assets will also be transferred to FTR. As an 80%-owned subsidiary of Fukoku, FTR will assume responsibility for the transferred operations during fiscal year 2026. This transition is intended to ensure uninterrupted business activities while centralizing resources and operational capabilities within a single entity.

Timeline for Dissolution and Liquidation

Following completion of the transfer process, TRIM will gradually proceed through dissolution and liquidation procedures. Fukoku indicated that the liquidation process is expected to conclude by 2030. The extended timeline provides sufficient flexibility for administrative, legal, and operational requirements associated with winding down the subsidiary while ensuring a smooth transition of business functions to FTR.

Key Details of Fukoku’s Indonesia Reorganization

Below is a summary of the announced restructuring initiative.

Fukoku Indonesia Restructuring Overview

Expected Financial Impact Remains Limited

According to Fukoku, the transaction represents an internal group reorganization rather than an external acquisition or divestment. As a result, the company expects no material effect on its consolidated financial performance. The restructuring is primarily intended to optimize operational management and support long-term business efficiency within its Indonesian operations while preserving existing manufacturing and sales capabilities.

Frequently Asked Questions

Why is Fukoku transferring PT TRIM RUBBER’s business to FTR?
The transfer is intended to strengthen operational efficiency and support future growth opportunities in Indonesia. Fukoku determined that PT TRIM RUBBER’s smaller business scale could limit expansion potential over time. By consolidating automotive hose manufacturing and sales activities under PT FUKOKU TOKAI RUBBER INDONESIA, the company can centralize resources, improve management efficiency, and maintain business continuity while creating a more streamlined organizational structure for its Indonesian operations.

Will the restructuring affect Fukoku’s financial performance?
Fukoku stated that the restructuring is an internal group reorganization and is not expected to have a material impact on consolidated financial results. The initiative mainly involves transferring business operations and related production assets between subsidiaries within the same corporate group. Because the transaction does not represent a significant external acquisition, disposal, or change in business ownership, the company expects its overall financial performance to remain largely unaffected by the restructuring process.

When will PT TRIM RUBBER be fully liquidated?
PT TRIM RUBBER is expected to complete its liquidation process by 2030. The business transfer to PT FUKOKU TOKAI RUBBER INDONESIA is scheduled to take place during fiscal year 2026, after which dissolution and liquidation activities will continue over several years. This phased approach allows the company to address legal, administrative, and operational requirements in an orderly manner while ensuring a smooth transition of manufacturing and sales operations to the receiving subsidiary.