Optimization of Production Structure

「As part of the restructuring of unprofitable businesses, the company halted cement production in June 2025, closed the Ofuna Plant in March 2026 and withdrew from the Karalyan film and tape businesses, while consolidating the spun-fiber yarn business for synthetic-fiber wigs at its Singapore subsidiary.」

「Profit attributable to owners of the parent amounted to ¥3.902 billion, up ¥530 million year on year, or 15.7%, as the company recorded an extraordinary loss related to its US subsidiary Denka Performance Elastomer, Inc., where operations had been temporarily suspended without a specified end date, while also recording a gain on the transfer of the Ofuna Plant site as an extraordinary gain.」

「As a fundamental measure for the chloroprene rubber business, which is our highest priority, we recorded an impairment loss on related fixed assets at the US chloroprene manufacturing subsidiary Denka Performance Elastomer, Inc. (DPE), and the company decided to temporarily suspend its chloroprene rubber manufacturing equipment. We also decided to suspend operations at the Ofuna Plant.」

「Demand for chloroprene rubber remained sluggish, and sales volume was at the same level as the previous year. Sales of corrugated pipes for agricultural and civil engineering applications and cement were also at the previous year’s level, while sales volume of special admixtures fell below the previous year’s level due to delays in construction work and other factors.」

「We have identified improving the profitability of the chloroprene rubber business as our highest priority, and will scrutinise demand trends and optimal production capacity before deciding on fundamental measures.」

「The company resolved to end cement production and make a complete withdrawal from its in-house limestone mining and cement manufacturing businesses by the first half of 2025.」

「At a meeting of its Board of Directors held on 25 October 2022, the company decided to transfer its cement sales business, through an absorption-type company split (the “Absorption-Type Company Split”), to a wholly owned subsidiary newly established as a wholly owned subsidiary of the company (the “New Company”), and then transfer all shares in the New Company to TAIHEIYO CEMENT CORPORATION (the “Taiheiyo Cement”). On the same date, the company entered into a share transfer agreement with Taiheiyo Cement. In addition, the company resolved to make a complete withdrawal from its in-house limestone mining and cement manufacturing businesses by the first half of 2025.」

「Subsequently, the company plans to cease cement production and limestone mining and make a complete withdrawal from the cement business by the first half of 2025.」

「Major equipment projects completed during the consolidated fiscal year included installation of a production line for the new high-performance elastomer “Evolmer” at our Omi Plant, as well as capacity expansion projects for electronic and advanced products at our Omuta and Shibukawa plants.」

「Following the decision to halt carbide production at the Omuta Plant and consolidate the production sites for the carbide-related business, the carrying amount of the plant’s carbide-related manufacturing equipment was written down to its recoverable amount. For the cumulative third quarter of the current consolidated fiscal year, impairment losses attributable to this event amounted to ¥449 million in Elastomers and Functional Resins, ¥686 million in Infrastructure and Social Solutions, and ¥84 million in corporate assets.」

「① Optimisation of the production system」

「① Optimisation of the production system」

「Major equipment projects completed during the consolidated fiscal year included projects at our Chiba Plant to strengthen competitiveness by optimising utilities, as well as a cost-reduction project for the styrene monomer plant.」

「[3 New Growth Strategies] ① Optimisation of the production system」

「[3 New Growth Strategies] ① Optimisation of the production system」

「[3 New Growth Strategies] ① Optimisation of the production system」