The global piano market continues to struggle with declining demand, particularly in China, the world’s largest market, and lingering economic weaknesses following the COVID-19 pandemic. In response, Yamaha Corporation has announced a major restructuring of its piano production, including the closure of its two Indonesian factories: PT. Yamaha Indonesia (YI) and PT. Yamaha Musical Products Asia (YMPA).
 

Shifting Production to Japan and China
 

Currently, YI manufactures entry-level pianos for global distribution, while YMPA produces wood parts for piano manufacturing. As part of its strategic reorganization, Yamaha will transfer production to Japan and China.

Japan, known for its technical expertise, will focus on high-value pianos, including some models previously made in Indonesia.

China, with its advanced facilities, will continue manufacturing for both the domestic and global markets, despite the ongoing drop in Chinese demand.
 

Navigating a Challenging Market
 

Yamaha acknowledges the financial strain caused by the rapid decline in piano demand, which has outpaced cost reductions. The company has been implementing structural reforms since last year and sees this reorganization as a necessary step to align its production scale with future demand projections.
 

Timeline and Financial Impact
 

• YMPA will cease production by March 2025
• YI will follow by December 2025, after which both plants will enter liquidation procedures.

• The restructuring will cost ¥6.5 billion in expenses, including a ¥3 billion impairment loss recorded in the third quarter of the 2025 fiscal year.

Yamaha remains committed to delivering the best piano experience to customers worldwide and aims to rebuild its piano business through optimized production and a focus on high-value models.

 

What’s happening to the Piano Industry?
 

The piano industry is facing major upheavals, with two significant closures making headlines. Recently the historic German piano manufacturer Grotrian-Steinweg shut down its operations, and now Yamaha has announced the termination of its piano production in Indonesia.

With shifting market demands, economic challenges, and restructuring efforts, what does this mean for the future of piano manufacturing?