Dainichiseika Color & Chemicals Mfg (TYO:4116) said it will implement a group-wide business restructuring aimed at lifting profitability and improving growth potential, according to a Thursday filing on the Tokyo Stock Exchange.
The company said the restructuring is intended to help achieve long-term targets of 9% return on equity and 5% return on assets, with interim milestones of at least 5% ROE and 4.3% ROA by fiscal 2027.
It said the restructuring will focus on reviewing its business portfolio, including possible downsizing or withdrawal from non-core operations, as well as streamlining production, sales and administrative functions. The company will also reorganise production sites and review personnel allocation as part of the plan.
Dainichiseika has set up a dedicated unit, "Project RISE", to oversee the execution of the restructuring measures. It said specific details of the plan will be disclosed around autumn 2026.
The company's shares were up 5% in late Friday trade.