Akebono Brake Industry Co., Ltd. disclosed two major corporate actions on April 17, 2026: a new slate of director candidates for its June 24 shareholder meeting and an agreement to cede management control of its Guangzhou disc and drum brake subsidiary to joint-venture partner Fujiwa Machinery Industry (Kunshan) and Taiwan’s LIOHO Group. The Akebono board approved both proposals the same day, signaling a coordinated push to refresh leadership and refocus the company’s China manufacturing footprint.
Highlights
- Former Komatsu production executive Korekiyo Yanagisawa nominated as a new director; CEO Hiroshi Nagaoka proposed for re-election
- Akebono’s stake in Akebono Corporation (Guangzhou), or ACG, will fall from 70% to 30% via equity transfer and third-party capital increase
- Masaaki Ando, current ACG chairman, will retire from Akebono’s parent board at the June AGM
- Transaction expected to generate extraordinary income of approximately ¥0.3 billion ($1.9 million) consolidated and ¥1.0 billion ($6.3 million) non-consolidated in FY ending March 31, 2027
New Director Slate for June 24 Meeting
Four director candidates (excluding Audit & Supervisory Committee members) will stand at Akebono’s 125th Ordinary General Meeting of Shareholders. Nagaoka, who joined as President and CEO at the start of 2025 after senior engineering roles at Nissan Motor Co. and Mitsubishi Motors Corporation, is proposed for re-election. Junichi Ebisuno and outside director Takashi Komagata are also up for re-election.
The only new nominee is Korekiyo Yanagisawa, born in 1963, who spent his entire career at heavy-equipment maker Komatsu Ltd. after joining in 1985. He rose to Executive Officer and Osaka Plant Manager in 2015, was promoted to Senior Executive Officer (Jomu) in 2019, and most recently served as Senior Executive Officer (Senmu) with responsibility for Komatsu’s Production Division and logistics from April 2025.
Yanagisawa’s director nomination aligns with a separate April 1, 2026 personnel announcement naming him Executive Vice President in charge of Manufacturing at Akebono, placing plant oversight under an executive with decades of production experience at one of Japan’s largest industrial producers.
Audit Committee and Officer-Level Changes
Takao Watanabe, an Akebono veteran who joined the company in 1985, is the new nominee for Audit & Supervisory Committee member. He currently serves as Executive Officer Assisting the CEO after prior roles leading Legal and General Affairs, HR, Corporate Division, Sustainability Implementation, and Administration. The Audit and Supervisory Committee has approved his nomination.
Broader officer-level reshuffling effective April 1 includes Yukihiro Hattori taking responsibility for the Automotive Business Division, Kentaro Kosugi becoming Head of the Automotive Business Division, Ryoko Maejo named Chairman of Akebono Corporation (Suzhou), and Yoshitsugu Matsushita assuming responsibility for ASEAN Operations. Current director Masaaki Ando will retire at the close of the June meeting.
Guangzhou JV to Become Equity-Method Affiliate
Separately, Akebono said it will transfer roughly half its equity in ACG to Fujiwa Machinery Industry (Kunshan), while ACG simultaneously implements a third-party capital increase subscribed by Kunshan Technical Automotive Center Co., Ltd., a LIOHO Group research entity. Post-transaction ownership shifts to 30% Akebono, 55% Fujiwa, and 15% Kunshan Technical. ACG will reclassify from a consolidated subsidiary to an equity-method affiliate.
Akebono framed the deal as part of its ongoing restructuring of China operations, with the company refocusing on Akebono Corporation (Suzhou), which manufactures disc brake pads. Management of ACG’s disc and drum brake business will pass to the LIOHO Group, which includes parent LIOHO MACHINE WORKS, LTD.
ACG Financial Profile
ACG was established in October 2004 with capital of 62 million yuan (approximately $9.1 million). Its financial trajectory rebounded sharply in 2025:
- FY2023: Net sales of 451 million yuan (~$66.1 million); profit of 6 million yuan (~$880,000)
- FY2024: Net sales of 395 million yuan (~$57.9 million); net loss of 1 million yuan
- FY2025: Net sales of 453 million yuan (~$66.4 million); profit of 31 million yuan (~$4.5 million)
Net assets stood at 197 million yuan (~$28.9 million) at year-end 2025.
Transaction Terms
Fujiwa Machinery Industry (Kunshan), established in 1995, is owned 55% by a wholly owned subsidiary of LIOHO MACHINE WORKS, LTD. and 45% by Sumitomo Corporation. It conducts casting, machining, and assembly of automotive brake, drive, and engine parts. Kunshan Technical Automotive Center, established in 2014 with capital of 5 million yuan, focuses on design, prototyping, and testing of brake discs and knuckles.
Akebono said it has no prior capital, personnel, or business relationship with either entity. The equity transfer agreement is scheduled for signing on April 27, 2026, with closing targeted for June 30, 2026. The transfer price has not been disclosed, which Akebono attributes to confidentiality obligations and a request by the transferee.
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