April 14, 2022
Denka Company Limited

Denka Announces Expansion of Reagent Production Capacity Including Antigen Test Kits
through Strategic Investment of Approximately 11 Billion Yen– Strengthening Health Care Business and Commitment to Control Infectious Diseases Worldwide –Image of exterior of new manufacturing facility at Gosen Site Kagamida Plant

Denka Company Limited (headquarters: Chuo-ku, Tokyo; president: Toshio Imai; hereinafter, “Denka”) has
decided to strategically invest approximately 11 billion yen in the Gosen Site Kagamida Plant (Gosen-shi,Niigata), which manufactures reagents, aiming for further growth in the health care business. Denka will
strengthen competitiveness through expansion of production capacity for rapid antigen test kits and reagents,
also by reforming operation, production and logistics processes via digitalization.
The market for reagents, which are the core products of the health care business, has changed dramaticallyprimarily as a result of the COVID-19 pandemic. As a reagent manufacturer, Denka will meet growing demand
for testing and contribute to improve the Quality of Life of people around the world by building a new
manufacturing facility and not only expanding production capacity but also strengthening cost-competitivenessthrough digitalization.
Areas to be Strengthened through Strategic Investment(1) Expanding production capacity will enable to manufacture COVID-19 rapid antigen tests and otherrapid test kits to around 2.5 times more than current capacity.
(2) Expanding production capacity will double the current manufacturing capacity for diagnostics
reagents.
(3) Strengthen cost competitiveness through reforming and automatization of operation, production andlogistics processes via digitalization(Adoption of technologies such as automated warehouses, automated guided vehicles, and MES (*1))
Denka plans to help fund this strategic investment by applying to the Japanese government's subsidy program(*2) aimed at strengthening supply chain resilience for products and materials which are critical for people tolead healthy lives.
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With ‘Sustainable Development Goals’ as our motto, Denka aims to be an irreplaceable company for society bycreating a better world for everyone with what we do best.

(*1) MES (Manufacturing Execution System)
Information system which visualizes and manages various manufacturing processes as well as
instructs and supports operators.(*2) Program for Promoting Investment in Japan to Strength
en Supply Chains administeredby the Ministry of Economy, Trade and Industry (*Japanese)
https://www.meti.go.jp/covid-19/supplychain/index.html
Overview of investments
・Investment target facility: Gosen Site Kagamida Plant (Gosen-shi, Niigata)・Overview of new facility: Total floor area of approx. 16,600 m2, 4 stories above ground・Investment: Approx. 11 billion yen (Estimate)・Completion date: Second half of FY2024 (Scheduled)* This investment has no impact on consolidated financial results for FY2022.
Reference: Overview of Gosen Site (Kagamida Plant and Niigata Plant)
・Kagamida Plant：1359-1, Kagamida, Kigoshi, Gosen-shi, Niigata
・Niigata Plant ：1-2-2, Minami-hon-cho, Gosen-shi, Niigata
・Manufactured products: Antigen test kits (COVID-19, Influenza virus, RS virus, etc.), Reagents for serumimmunological tests, Clinical chemistry reagents, Bacterial reagents, Viral reagents, and Other reagents,
Influenza vaccine, Tetanus vaccine, G47Δ oncolytic virus against Malignant Glioma・Number of employees: Approx. 850 (Total Employees at Gosen site)[Media Contact for This Press Release]
Corporate Communications Dept. Tel: +81-3-5290-5511

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