Toto to Shut Two China Plants as Part of Restructuring Plan
Toto will close two manufacturing subsidiaries in China as part of a restructuring plan due to declining profits from a weak real estate market and price competition. The Beijing and East China units will be liquidated, with production consolidated into two remaining sites. The company aims to focus on Japan-style remodeling services and affordable products for China's middle and upper-middle markets, anticipating extraordinary losses from the restructuring in the fiscal year ending March 2026.
Toto will shut two manufacturing subsidiaries in mainland China as part of a broader restructuring to address falling profits amid prolonged weakness in the real estate sector and intensifying price competition, according to a Monday filing on the Tokyo Stock Exchange.
The company said its Beijing and East China units will be closed and liquidated, cutting headcount and consolidating production into two remaining sites, including a new factory.
Toto plans to sharpen its focus on Japan-style remodeling services and roll out competitively priced products for China's middle and upper-middle markets.
The toilet manufacturer expects to book extraordinary losses related to the restructuring in the fiscal year ending March 2026.
