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

Release of Wastewater Containing Benzene and Other Substances from Our Okayama Plant (Third Report)

An incident involving the discharge of wastewater containing benzene, toluene, xylene and other substances from the Okayama Plant is under investigation. The company is investigating the cause, implementing measures to prevent further discharge, conducting water-quality tests and considering measures to prevent recurrence. Deteriorated concrete at Synthetic No. 6 Plant and damage to wastewater facilities and cracked piping at Synthetic No. 7 Plant have been identified as potential causes.

Worth reading
63In focus
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Direction
Deterioration
Direction inferred from the company’s description.
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Wording
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Release of Wastewater Containing Benzene and Other Substances from Our Okayama Plant (Third Report)

Subject Entity

HOKKO CHEMICAL INDUSTRY CO.,LTD.

Target Locations / Products

Okayama Plant, Synthetic No. 6 Plant, Synthetic No. 7 Plant, and the vicinity of the quay foundation at Yoshiura Beach. The chemical substances contained in the discharged wastewater include benzene, toluene and xylene.

OccurrenceA report of the discharge was received at around 16:15 on 14 July 2026, and the company confirmed at around 22:00 on 17 July 2026 that wastewater containing chemical substances had been discharged.
Same day
Awareness or receipt of noticeAt around 16:15 on 14 July 2026, the company received notification that Tamano City had reported the discharge.
This disclosure10/23/2026
Cause

① Deterioration of the concrete inside the trench leading to the wastewater pit at Synthetic No. 6 Plant; ② damage to the drainage channel and cracks in the buried piping leading to the wastewater pit at Synthetic No. 7 Plant. The company is identifying the cause of the discharge, including the possibility of other sources.

Company response

Suspended operations

Operations were suspended at Synthetic No. 6 Plant and Synthetic No. 7 Plant, which primarily handle the chemical substances detected.

Investigation structure

An incident response headquarters has been established. The company is receiving advice from an external service provider with expertise in water-quality testing.

Measures to prevent recurrence

The affected areas at Synthetic No. 6 Plant and Synthetic No. 7 Plant that are considered possible sources of the discharge will be repaired and structurally improved promptly. In addition, all wastewater systems within the Okayama Plant will be reinspected, and repairs to the wastewater facilities and improvements and relocation of the wastewater structures, including conversion of buried piping to a trench structure, will be carried out systematically.

Impact on Earnings Forecast

The impact of this matter on the company’s consolidated results will be disclosed promptly once determined.

Related procedures

Court or authority

Administrative authorities, including Okayama Prefecture and Tamano City

Outlook

The wastewater systems within the Okayama Plant will be inspected, and repairs, improvements and relocation of the wastewater facilities will be carried out. Boring surveys and other investigations will be conducted on the plant premises to analyze the distribution of soil and groundwater contamination, as well as the direction and volume of groundwater flow. The remediation method will be determined based on the results of the analyses, and the remediation work is scheduled for completion by March 2027.

Planned follow-up disclosure

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

Event that occurred
ItemDetails
Event nameRelease of Wastewater Containing Benzene and Other Substances from Our Okayama Plant (Third Report)
Date of occurrenceA report of the discharge was received at around 16:15 on 14 July 2026, and the company confirmed at around 22:00 on 17 July 2026 that wastewater containing chemical substances had been discharged.
Date recognized / date notice receivedAt around 16:15 on 14 July 2026, the company received notification that Tamano City had reported the discharge.
Subject EntityHOKKO CHEMICAL INDUSTRY CO.,LTD.
Target Locations / ProductsOkayama Plant, Synthetic No. 6 Plant, Synthetic No. 7 Plant, and the vicinity of the quay foundation at Yoshiura Beach. The chemical substances contained in the discharged wastewater include benzene, toluene and xylene.
Cause① Deterioration of the concrete inside the trench leading to the wastewater pit at Synthetic No. 6 Plant; ② damage to the drainage channel and cracks in the buried piping leading to the wastewater pit at Synthetic No. 7 Plant. The company is identifying the cause of the discharge, including the possibility of other sources.
Impact on Earnings ForecastThe impact of this matter on the company’s consolidated results will be disclosed promptly once determined.
Court or authorityAdministrative authorities, including Okayama Prefecture and Tamano City
Suspended operationsOperations were suspended at Synthetic No. 6 Plant and Synthetic No. 7 Plant, which primarily handle the chemical substances detected.
Investigation structureAn incident response headquarters has been established. The company is receiving advice from an external service provider with expertise in water-quality testing.
Measures to prevent recurrenceThe affected areas at Synthetic No. 6 Plant and Synthetic No. 7 Plant that are considered possible sources of the discharge will be repaired and structurally improved promptly. In addition, all wastewater systems within the Okayama Plant will be reinspected, and repairs to the wastewater facilities and improvements and relocation of the wastewater structures, including conversion of buried piping to a trench structure, will be carried out systematically.
OutlookThe wastewater systems within the Okayama Plant will be inspected, and repairs, improvements and relocation of the wastewater facilities will be carried out. Boring surveys and other investigations will be conducted on the plant premises to analyze the distribution of soil and groundwater contamination, as well as the direction and volume of groundwater flow. The remediation method will be determined based on the results of the analyses, and the remediation work is scheduled for completion by March 2027.
Planned follow-up disclosureThe impact of this matter on consolidated results will be disclosed promptly once determined.
Items this document does not state (12)
Amount of Impact on Business PerformanceAccounting period in which recognizedType of litigation or proceedingPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionScheduled resumption dateDirectors' 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.

Inspection of the wastewater routes confirmed deterioration of the concrete inside the trench leading to the wastewater pit at Synthetic No. 6 Plant, as well as damage to the drainage channel and cracks in the buried piping leading to the wastewater pit at Synthetic No. 7 Plant. The results of gas testing also indicate that these may be sources of the discharge. However, the company is continuing to identify the cause, including the possibility of other sources.

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Release of Wastewater Containing Benzene and Other Substances from Our Okayama Plant (Third Report) | HOKKO CHEMICAL INDUSTRY CO.,LTD. (4992) timely disclosure | Komori