Elizabethtown, KY – Akebono Brake Industry Co., Ltd. confirmed today the upcoming closure of its Akebono Brake, Elizabethtown Plant in Kentucky, one of the two remaining manufacturing facilities of its US subsidiary, Akebono Brake Corporation.
The decision, made on October 20, 2023, at the company’s Board of Directors meeting, aims to streamline North American operations. This move follows the company’s previous announcements, notably on December 19, 2019, when Akebono disclosed plans to cease production and close two of its plants in Tennessee and South Carolina. Those plants concluded operations by September 2020.
This latest announcement is in alignment with the company’s long-term strategy, which was previously communicated in the “Business Turnaround Plan” submitted to the Tokyo Stock Exchange on September 18, 2019. The aim has been to optimize the production structure in North America and to ensure the company’s stability amid business structural reforms.
Post the transfer of necessary facilities and equipment, Akebono will explore potential avenues to sell or dispose of remaining assets, including the land, buildings, and any surplus equipment.
Details of the Elizabethtown Plant (ABE) are as follows:
- Location: 300 Ring Road, Elizabethtown, KY 42701, U.S.A.
- Primary Business: Production and sales of disc brakes, drum brakes, and high-performance disc brakes.
- Employee Count: 629 as of September 2023.
- Net Sales (North American operations): 41.9 billion yen for the fiscal year ending March 31, 2023.
- Operating Profit (North American operations): A loss of -3.7 billion yen for the same period.
The anticipated closure date for the plant is provisionally set for December 2025.
Akebono is currently evaluating the financial implications of this move on net sales and operating profit. Further financial details, including any extraordinary losses linked to this decision, will be disclosed as soon as available. The company remains committed to its stakeholders and will ensure timely communication of any significant updates.
