Competition from Mexico and other countries with low labor costs has taken a steady toll on the finances of cotton yarn and fabric manufacturer NISSHINBO CALIFORNIA INC. for the last 11 years. As a result, NISSHINBO INDUSTRIES, INC. and partner KANEMATSU CORP. (25 percent) have decided to close the Fresno, California company by December and let its 240 employees go. In 1998, Nisshinbo California posted a net loss of $1.6 million on sales of $29.7 million. At that time, liabilities reportedly exceeded assets by some $35 million, reflecting the fact that the manufacturer never has had a profitable year.
An exchange rate of ¥113=$1.00 was used in this report.aaaaaa