Transfer to the new Changshu plant and improved production efficiency

「We are also working to establish a system for manufacturing marine exhaust-gas valves at our Chinese subsidiary, 奥村閥門（江蘇）有限公司, customising them for the local market and selling them under a 'local production for local consumption' model.」

「In June, we made our first shipment of marine exhaust-gas valves manufactured at our Chinese subsidiary, 奥村閥門（江蘇）有限公司, to China's largest marine engine manufacturer. We will use this as a basis for developing a system to customise products for the local market and sell them under a 'local production for local consumption' model.」

「Major capital expenditures included ¥619.955 million related to the acquisition of the plant of 奥村閥門（江蘇）有限公司, classified as buildings and structures; ¥6.46 million for renovation work, including an OA floor, at the Shiga Hino plant; ¥15.112 million for wooden patterns and mold modification costs at the Shiga Hino plant, classified as tools, fixtures and equipment; and ¥9.76 million for the company's telephone exchange equipment, among other investments.」

「Overseas, we also constructed a new plant of 奥村閥門（江蘇）有限公司 in Changshu, China, achieving an increase in production volume through improved production efficiency.」

「In China, in response to a request to vacate the site due to the Chinese government's urban redevelopment, we completed a new plant of 奥村閥門（江蘇）有限公司 in Changshu in December 2020 as a replacement for the Suzhou plant of 蘇州奥村閥門有限公司, and established a structure enabling operations to begin in January 2021. The Changshu plant has approximately 1.4 times the site area of the Suzhou plant, and we expect production to increase as a result of improved production efficiency following the consolidation of production equipment.」