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Occurring Fact4992HOKKO CHEMICAL INDUSTRY CO.,LTD.Materials and Chemicals

Regarding the Discharge of Wastewater Containing Benzene and Other Substances from Our Okayama Plant (Update No. 2)

It was discovered that waste liquid containing benzene and other substances had been discharged near the Yoshiura Beach area through cracks in the wastewater pits at the Okayama Plant. After measures were taken to prevent further discharge, production at Synthetic Plants 6 and 7, which had been suspended, has resumed.

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Discharge of wastewater containing benzene and other substances from the Company's Okayama Plant

Subject Entity

HOKKO CHEMICAL INDUSTRY CO.,LTD.

Target Locations / Products

Okayama Plant, Synthetic Plant 6 and Synthetic Plant 7. The discharge occurred near the base of the quay at Yoshiura Beach. The chemicals contained in the wastewater include benzene, toluene and xylene.

OccurrenceAround 16:15 on 14 July 2026 (when the discharge was discovered). The wastewater discharge was confirmed at around 22:00 on 17 July 2026.
Same day
Awareness or receipt of noticeAround 16:15 on 14 July 2026 (the date on which Tamano City notified us of the discharge)
This disclosure07/30/2026
Cause

The waste liquid is believed to have escaped through cracks in the resin coating on the wastewater pits at Synthetic Plants 6 and 7. Investigations and efforts to determine the cause are ongoing.

Company response

Suspended operations

Operations at Synthetic Plants 6 and 7 were suspended. Use of the wastewater pits at the other plants was temporarily suspended.

Scheduled resumption date

Production at Synthetic Plants 6 and 7 has resumed using a method that does not involve the wastewater pits. Production at the other plants is continuing.

Investigation structure

A response headquarters has been established. In addition to receiving advice from an external service provider with expertise in water quality surveys, the Company has commissioned external specialist organizations to conduct investigations and analyses.

Measures to prevent recurrence

The Company will thoroughly prevent any recurrence of wastewater discharge by using methods that do not involve the wastewater pits / Going forward, the Company will consider fundamental measures to prevent further discharge

Related procedures

Type

Instructions and guidance from administrative authorities, and sampling surveys of seawater

Court or authority

Administrative authorities, including Okayama Prefecture and Tamano City

Impact on Earnings Forecast

The impact of this matter on consolidated results will be promptly disclosed once it is determined.

Outlook

The Company will investigate the cause, address measures to prevent further discharge and assess the impact on seawater. It will pump groundwater along the discharge route, seal the discharge outlet at the quay, continue checking for any further discharge and consider fundamental measures to prevent further discharge.

Planned follow-up disclosure

The impact of this matter on consolidated results will be promptly disclosed once it is determined.

Event that occurred
ItemDetails
Event nameDischarge of wastewater containing benzene and other substances from the Company's Okayama Plant
Date of occurrenceAround 16:15 on 14 July 2026 (when the discharge was discovered). The wastewater discharge was confirmed at around 22:00 on 17 July 2026.
Date recognized / date notice receivedAround 16:15 on 14 July 2026 (the date on which Tamano City notified us of the discharge)
Subject EntityHOKKO CHEMICAL INDUSTRY CO.,LTD.
Target Locations / ProductsOkayama Plant, Synthetic Plant 6 and Synthetic Plant 7. The discharge occurred near the base of the quay at Yoshiura Beach. The chemicals contained in the wastewater include benzene, toluene and xylene.
CauseThe waste liquid is believed to have escaped through cracks in the resin coating on the wastewater pits at Synthetic Plants 6 and 7. Investigations and efforts to determine the cause are ongoing.
Impact on Earnings ForecastThe impact of this matter on consolidated results will be promptly disclosed once it is determined.
Type of litigation or proceedingInstructions and guidance from administrative authorities, and sampling surveys of seawater
Court or authorityAdministrative authorities, including Okayama Prefecture and Tamano City
Suspended operationsOperations at Synthetic Plants 6 and 7 were suspended. Use of the wastewater pits at the other plants was temporarily suspended.
Scheduled resumption dateProduction at Synthetic Plants 6 and 7 has resumed using a method that does not involve the wastewater pits. Production at the other plants is continuing.
Investigation structureA response headquarters has been established. In addition to receiving advice from an external service provider with expertise in water quality surveys, the Company has commissioned external specialist organizations to conduct investigations and analyses.
Measures to prevent recurrenceThe Company will thoroughly prevent any recurrence of wastewater discharge by using methods that do not involve the wastewater pits / Going forward, the Company will consider fundamental measures to prevent further discharge
OutlookThe Company will investigate the cause, address measures to prevent further discharge and assess the impact on seawater. It will pump groundwater along the discharge route, seal the discharge outlet at the quay, continue checking for any further discharge and consider fundamental measures to prevent further discharge.
Planned follow-up disclosureThe impact of this matter on consolidated results will be promptly disclosed once it is determined.
Items this document does not state (10)
Amount of Impact on Business PerformanceAccounting period in which recognizedPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the change

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Cracks were found in the resin coating on the wastewater pits at Synthetic Plants 6 and 7, and the waste liquid is believed to have escaped through them. Investigations and efforts to determine the cause are continuing.

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Regarding the Discharge of Wastewater Containing Benzene and Other Substances from Our Okayama Plant (Update No. 2) | HOKKO CHEMICAL INDUSTRY CO.,LTD. (4992) timely disclosure | Komori