Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
March 17, 2026 Company Name： ARAKAWA CHEMICAL INDUSTRIES, LTD.
Representative： Nobuyuki Takagi Representative Director and President
(Securities code: 4968, Tokyo Stock Exchange Prime Market)
Contact： Nobuyuki Fuke Director and Executive Officer, Corporate Planning H.Q
Telephone: +81-6-6209-8500 Notice Regarding the Establishment of a Joint Venture in Vietnam
ARAKAWA CHEMICAL INDUSTRIES, LTD. (the "Company") hereby announces that, today, its Board of Directors has resolved to establish a joint venture with Meiwa Corporation (President and CEO: Takashi Yoshida), to be located in the Socialist Republic of Vietnam (hereinafter referred to as "Vietnam"), for the procurement of crude pine resin and the supply of gum rosin. We are providing this information as a voluntary disclosure, which is not subject to timely disclosure standards but deemed useful. Some content necessary for timely disclosure has been omitted.
Purpose of Establishing the Joint Venture
Our group is committed to the realization of a sustainable Earth and society under the management philosophy of "V-ACTION for sustainability," as outlined in our Fifth Mid-term Management Plan (April 2021 - March 2026).
We have been contributing to society by developing and supplying materials based on proprietary technology utilizing natural resins obtained from pine trees, such as gum rosin, which is a renewable natural resin refined from crude pine resin. These materials include chemicals for papermaking, resins for printing inks, adhesives, and electronic materials.
Gum rosin is a core raw material symbolizing our group, and we recognize that achieving sustainable procurement is a social responsibility.
In August 2023, we formulated a "Sustainable Procurement Policy" addressing global demand for rosin products and aiming to diversify procurement sources to mitigate environmental and social risks.
The decision to strengthen the sustainability of the gum rosin business and to lay the groundwork for building our life sciences business led us to explore potential business opportunities in Vietnam with Meiwa Corporation and reached an agreement to establish a new company.
This initiative had been developed through long-term joint discussions with the Vietnamese governments, and we have obtained approval to establish the company from the Lam Dong Province government in Vietnam.
The new company will serve as a "Sustainability Center" with the following roles:
Strict Raw Material Management: Pine resin collection will be conducted under our technological guidance by multiple forest management companies under the jurisdiction of the Lam Dong Province Agriculture and Environment Department.
Stable Supply through Purchase: The new company will purchase all traced and clearly sourced pine resin collected by these forest management companies.
Supply System for Gum Rosin: Establishing a stable collection system for pine resin and processing it to produce gum rosin.
Contributing to the Region: Creating employment opportunities and human resource development in the local community.
Overview of the New Company
Name
ARAKAWA FOREST TECHNOLOGY VIETNAM CO., LTD.
Location
109-111 Phan Boi Chau Street, Xuan Huong - Da Lat Ward, Lam Dong Province, Vietnam
Representative
President So Yamamoto
Main Business Activities
Trading of pine resin, rosin, and turpentine, including related or ancillary operations
Capital
USD 100,000 (Approximately JPY 15 million; converted at USD/JPY 150)
Planned
Establishment Date
Around March 2026
Fiscal Year End
December
Shareholding Ratio
Arakawa Chemical Industries, Ltd.: 90%, Meiwa Corporation: 10%
Overview of the Joint Venture Partner
Name
Meiwa Corporation
Location
3-3-1 Marunouchi, Chiyoda-ku, Tokyo, Japan
Representative
President Takashi Yoshida
Business Activities
Resource and environmental business, flame retardants, functional building materials, petroleum products, high-performance materials, functional chemicals, synthetic resins, battery materials, automotive-related
businesses, etc.
Capital
JPY 4,024 million
Date of Establishment
July 25, 1947
Relationship with Listed Company
Capital Relationship
Mutual shareholding
Business Relationship
Our company engages in procurement transactions related to functional chemicals with this company.
Future Outlook
The impact of this project on our consolidated performance for the fiscal year ending March 2026 is expected to be minor. However, we believe it will contribute to the medium- to long-term enhancement of our corporate value. If any further disclosures are necessary, we will promptly provide the relevant information.
End of Document
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Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.