TOKYO, January 22, 2021 — Ube Industries, Ltd., today announced that it will dissolve its subsidiary Ube Realty & Development Co., Ltd. as well as Nishi-Nihon Green Recycle Co., Ltd., which is wholly owned by Ube Realty & Development, effective March 31, 2021. The dissolution of the subsidiaries will have minimal impact on the consolidated business results of Ube Industries for the year ending March 31, 2021.
Ube Realty & Development previously operated a golf course business (Ube 72 Country Club) and continues to operate an adjacent hotel business (Ube 72 Ajisu Spa Hotel) and plant waste service (encompassing West Japan Green Recycle).
In March 2020, Ube Realty & Development conducted a split-up and transfer of the golf course business to Ichikawa Kogyo K.K. in order to further improve user services and for the medium- and long-term development of the business.
Of the two remaining businesses, the hotel business is facing a decline in visitors and the property itself (Ube 72 Ajisu Spa Hotel) is aging, so that earnings are not projected to recover. The plant waste service mainly processed logs cleared from the golf course and no longer has a reason to operate with the transfer of the golf course to a new owner.
Without prospects for a recovery in earnings due to the aforementioned poor business conditions, Ube Industries carefully weighed the prospects for the survival of Ube Realty & Development and decided to dissolve and liquidate the company.
With the dissolution of Ube Realty & Development, Ube Industries determined that it was not feasible to continue operating West Japan Green Recycle, the wholly-owned subsidiary of Ube Realty & Development that managed the disposal of plant and tree waste from the golf course and landscaping projects. Accordingly, Ube Industries decided to dissolve and liquidate the company.
|Head Office Location||7373-1, Ajisu, Yamaguchi City, Yamaguchi Prefecture|
|Capital||100 million yen|
|Business Description||Hotel operation, real estate management, and landscaping services|
|Shareholder||Ube Industries, Ltd. (100%)|
|Head Office Location||12423-99, Ajisu, Yamaguchi City, Yamaguchi Prefecture|
|Capital||70 million yen|
|Business Description||Separation, collection, and processing of plant waste|
|Shareholder||Ube Realty & Development Co., Ltd. (100%)|