Closure of the Tsuruga PB plant materials process

「Fires occurred in the materials process at the particleboard plant of the company's Tsuruga facility, referred to below as the Tsuruga PB plant materials process, and around the boiler equipment of consolidated subsidiary EN Board Co., Ltd. EN Board Co., Ltd. resumed production on 26 June, but after extensive consideration of the investment returns, including the time and investment required to restore the severely damaged buildings and equipment, and the Group's supply structure for the market, the company decided, with regret, not to restore the Tsuruga PB plant materials process, where production had been suspended since the fire, and resolved at a meeting of the Board of Directors held on 9 August to close it. The decorative process, which applies a decorative finish to raw PB, was not affected by the fire, so the company decided to continue production by efficiently procuring raw PB externally, including from EN Board Co., Ltd. and other Group companies.」

「Regarding the Tsuruga PB plant materials process, after extensive consideration of the investment returns, including the time and investment required to restore the severely damaged buildings and equipment, and the Group's supply structure for the market, the company decided, with regret, not to restore the facility and resolved to close the Tsuruga PB plant materials process.」

「Following the fire, the Board of Directors resolved at its meeting held on 9 August 2023 to close the PB plant materials process at the company's Tsuruga facility.」