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Roland Corporation to dissolve Roland Europe subsidiary


Synthoid

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Not surprising. We commented on their financial condition, thoroughly discussed, about 6 months ago.

 

the expected extraordinary annual loss is approx $26,000,000 ( converted to USD from 2.6 Billion yen)

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This is the most telling part for me:

 

Meanwhile, under the initiative to implement structural reform of the Electronic

Musical Instruments Business announced in November last year, the Company has been pressing ahead to

concentrate its digital piano production bases in Indonesia. They already (along with most others) manufacture the majority of their stock lines in the same region, why not add the pianos as well.

The following is a bit OT:

 

Cost of labour in the South-East Asia region is so far below "western" labour rates, that this is happening with more and more companies. So get used to more and more jobs going to these countries and imports rising accordingly against exports.

 

Until "western" or "first world" countries accept that they MUST reduce labour costs (and if that means a lowering of the "standard of living" so be it) to survive financially into the future.

 

Just take a look at the spiralling out of control US debt situation. Countries simply cannot just import everything, they must return to local manufacturing and to achieve this workers (and ALL management levels) need to address excessive labour/salary rates

There is no luck - luck is simply the confluence of circumstance and co-incidence...

 

Time is the final arbiter for all things

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It's fine, no need to get into anything at all :) it was not written for that reason.

 

LoL. Such sincerity.

 

Everyone I know is moving to Australia

Why fit in, when you were born to stand out ?

My Soundcloud with many originals:

[70's Songwriter]

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OT and political, but needs to be responded to...

[...]Until "western" or "first world" countries accept that they MUST reduce labour costs (and if that means a lowering of the "standard of living" so be it) to survive financially into the future.

[sarcasm]Yes, by all means, let's reduce the standard of living in Western countries so that it matches that of third-world nations.[/sarcasm]

 

 

Just take a look at the spiralling out of control US debt situation. Countries simply cannot just import everything, they must return to local manufacturing and to achieve this workers (and ALL management levels) need to address excessive labour/salary rates

An alternative approach is to impose tariffs on goods manufactured in places where the wages are very low and working conditions are abysmal. It's not an ideal reaction, but otherwise the only winners are CEOs of large corporations, who exploit workers and don't care about consumers until there aren't any who can afford to buy their products.

 

Yamaha: Motif XF6 and XS6, A3000V2, A4000, YS200 | Korg: T3EX, 05R/W | Fender Chroma Polaris | Roland U-220 | Etc.

 

 

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[quote=MIDI2XS

 

[sarcasm]Yes, by all means, let's reduce the standard of living in Western countries so that it matches that of third-world nations.[/sarcasm]

 

 

 

An alternative approach is to impose tariffs on goods manufactured in places where the wages are very low and working conditions are abysmal. It's not an ideal reaction, but otherwise the only winners are CEOs of large corporations, who exploit workers and don't care about consumers until there aren't any who can afford to buy their products.

 

@ point 1. That is not really what I meant, but I can see how it read that way.

 

I guess the intent was that in our first world countries (Oz, USA UK et al) perhaps we are pricing ourselves out of the labour market - the obvious answer is to reduce wages/salaries - but more-so those obscene mulit-million $ exec salaries - to make labour more competitive and thereby retain manufacturing capability , however the downside is a reduced standard of living (not 3rd world that was just silly) - OR the best solution, imo, is what the second point raises re tariffs.

 

@2 Yep that's the sort of action I am taking about.

 

In Oz, ever since tariffs were removed totally our manufacturing industry has been decimated - clothing makers, shoe makers, now the last of the car makers are going, processed food industries - the list goes on and on. ALL due to the removal of tarrifs. Which only serves to line the pockets of a selected few on thos countries that are fine with extremely low rates of pay. Rates, which no first world country can hope to compete with.

There is no luck - luck is simply the confluence of circumstance and co-incidence...

 

Time is the final arbiter for all things

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Anyway as this is about Roland closing down - I apologise for the hijack and I will say no more re those matters

 

- however more O.T. I will add that Cakewalk's move to dump Roland and move ahead with Gibson turned out to be brilliant! I guess they saw the writing on the wall.

There is no luck - luck is simply the confluence of circumstance and co-incidence...

 

Time is the final arbiter for all things

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If I understand it correctly, that is a manufacturing (or R&D) facility. The various Roland EU distributors remain open for business as usual. Right?

 

 

This is the original Italian article mentioned in another forum.

 

http://www.osservatorequotidiano.it/arti...39#.Un5lynCbPy2

 

Basically liquidation of the manufacturing subsidiary in Italy. Roland's European President Maroni (at least that is what he is stated to be in the article) is uncertain as to what may happen to this facility in the future. I am speculating but from the tone of the language I do not think that he is a happy man. No mention is made with regard to distribution channels.

 

 

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I am not too worried for Roland's profitability or access to capital. It's just a pragmatic decision for them.

 

snapshot

 

Profitability numbers particular to any subsidiary will depend on transfer pricing rates set relatively freely and arbitrarily by the corporate parent, so we should take these numbers with a slight pinch of salt just as we would with any multinational.

 

I am more concerned about whether Italy will be priced out of the keyboard assembly market. I wonder how Fatar will remain competitive. They have been a reliable supplier for many products in the MI segment.

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I am sure they would have preferred to not drop the $26 million from their balance sheet. This subsidiary investment was a financial drain and it makes sense to unload it and wash it from the books.

 

After its washed away, there financials will look better. Plus they have figured out they will have a cost benefit to manufacturing in Indonesia. No doubt,they have pro formas that project this.

 

many electronic manufacturers have gone down this path in recent decade(s).

Why fit in, when you were born to stand out ?

My Soundcloud with many originals:

[70's Songwriter]

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