Reorganization of Production Sites

RIKEN TECHNOS CORPORATION has decided to reorganize its production sites in order to establish an optimal production structure and make effective use of management resources. The Company hereby announces that, as part of this effort, it plans to cease operations at the Gunma Factory, as outlined below.

1. Purpose of the Reorganization
The Company is working to improve production efficiency and strengthen its competitiveness with the aim of achieving medium- to long-term growth and sustainably enhancing corporate value.
Last year, the Company transferred a portion of the Gunma Factory site in order to make effective use of management resources and improve asset efficiency and ROIC. Following a review of the functions and roles of its domestic production sites, the company has now decided to transfer the production of film products currently manufactured at the Gunma Factory to its Saitama Factory and other sites in order to further improve the efficiency of its production structure.

2. Details of the Reorganization
The Gunma Factory manufactures window films and various functional film products. Production of these products will be transferred to the Company’s Saitama Factory and other sites.
Through this transfer, the Company will promote the efficient use of production facilities and human resources while further improving productivity.
Following the completion of the production transfer, the Company plans to cease operations at the Gunma Factory at the end of January 2027.

3. Stakeholders Engagement
In connection with the reorganization and suspension of operations at the factory, the Company will provide careful explanations to all stakeholders, including customers and business partners, and engage with them in good faith.
Employees will be reassigned within the Company and will remain employed by the Company. The Company will continue to provide them with assignments and development opportunities that contribute to both the Company’s growth and their own individual growth.

4. Future Outlook
At present, the impact of this matter on the consolidated financial results of the Company’s Group is expected to be minimal. The Company will promptly disclose any matters requiring disclosure that arise in the future.
The Company will continue working to further strengthen its production structure and improve profitability while enhancing the value it provides to customers through the stable supply of high-quality products.

Overview of Gunma Factory

Factory Name:　　　　 Gunma Factory, RIKEN TECHNOS CORPORATION
Address:　　　　　　　451-12, Kamitajima-cho, Ota-shi, Gunma
Start of Operations:　　October 2005
Main Products:　　　　Films for automotive and architectural windows, optical functional film products, etc.
End of Operations:　　 End of January 2027 (planned)