New facility decided

Sep. 10, 2019

We have decided upon the establishment of a new facility and concluded a term land lease agreement with Asaka City, Saitama Prefecture, on September 10, 2019.

1. Purpose of establishment

The Hanno Factory located in Hanno City, Saitama Prefecture and which serves as our company group's research and development facility and group business management facility, has now been in operation for over 70 years, and continues to age. In addition, various divisions are divided up and located among separate buildings on the site, making quick information sharing difficult.

For this reason, we have decided upon the establishment of this new facility in order to both centralize the principal functions of the various divisions currently located at the Hanno Factory , together with some of the functions from the Tokyo head office, to ensure business continuity and improve productivity.

2. New location overview

(1) Location: Saiwai-cho, Asaka city, Saitama, JAPAN
(2) Lot area: Approximately 29,600 m2
(3) Structure: 4 above-ground story, reinforced concrete structure
(4) Architectural area: Approximately 28,500 m2
(5) Investment cost: Approximately 1.2 billion yen (Buildings, etc.)
(6) Applications: Offices and research facilities

3. Contract overview

(1) Contract period: September 10, 2019 to March 31, 2069
(2) Contracting party: Asaka city, Saitama

4. Schedule

Construction commencement: September 2019
Planned construction completion: February 2021
Planned commencement of operation: April 2021

5. Future Prospects

The impact of the new location on the financial performance for the March 2020 period is minor. In addition, the establishment of the new facility is incorporated into the 15th Mid-term Business Plan.

New f acility completion conceptual drawing