December 5, 2017
DOWA HOLDINGS CO., LTD.

MELTEC IWAKI CO., LTD. Starts Operations
DOWA Group Doubles the Capacity for Melting Incinerated Ash/Recycling
DOWA ECO-SYSTEM CO., LTD. (14-1, Sotokanda 4-chome, Chiyoda-ku, Tokyo; capital: ¥1 billion;
President: Minoru Tobita), a subsidiary of DOWA HOLDINGS CO., LTD. (same location; capital:¥36.4 billion; President: Masao Yamada), has completed the construction of a new plant for
melting incinerated ash and manufacturing artificial aggregates, making it the second plant inJapan of the DOWA Group at MELTEC IWAKI CO., LTD. (1-75, Yoshinosawa, Yotsukura-machi,Iwaki, Fukushima; capital: ¥90 million; President: Toyohiko Arise), and started operations inDecember.
Much of the incinerated ash generated by municipal waste incineration plants up until now has
been deposited in landfill facilities. In light of the growing needs to improve the recycling ratio andto save on landfill capacity, more and more municipalities are implementing recycling programs,
such as adopting melting methods instead of burying waste in landfills. MELTEC Ltd., a wholly
owned subsidiary of DOWA ECO-SYSTEM, has introduced its own recycling process in which
incinerated ash is melted and cooled over a long period of time, manufacturing melting slag, which
is used as artificial aggregate, and molten metal, which contains gold/silver/copper and othervaluable metals since 1999. The melting slag manufactured by MELTEC has the same strength asnatural stones, and since hazardous heavy metals are separated and the metal slag isenvironmentally friendly, its quality as artificial aggregate is highly valued.
MELTEC IWAKI CO., LTD, which started operations, introduced the same recycling process as
MELTEC, which has been operating for about 20 years, accepting incinerated ash from Iwaki Cityand other municipalities. Demand for artificial aggregate to be used in the construction ofroadbeds and other structures is expected to grow in the surrounding areas. In addition, the groupcompany Kosaka Smelting and Refining Co., Ltd. will recycle the molten metal that contains
valuable metal as refining materials into a variety of metals such as gold, silver, and copper in thesame way of recycling MELTEC’s molten metal.
With the start of operation at MELTEC IWAKI, DOWA ECO-SYSTEM has established two plants for
melting incinerated ash, doubling the annual capacity for melting incinerated ash/recycling toabout 80 thousand tons. DOWA ECO-SYSTEM will respond to the needs of its customers who hopeto effectively use incinerated ash as a resource.
By expanding the incinerated ash melting business and the manufacture of artificial aggregate,
DOWA ECO-SYSTEM will continue to promote appropriate recycling and disposal of waste andcontribute to the protection of the environment.

[Outline of MELTEC IWAKI CO., LTD.]
1． Location: 1-75, Yoshinosawa, Yotsukura-machi, Iwaki City, Fukushima Prefecture(Iwaki Yotsukura Core Industrial Park)

2． Business description : Manufacturing of artificial aggregate (melting slag)
and refining materials (molten metal) by melting incinerated ash
3． Shareholder: DOWA ECO-SYSTEM CO., LTD., 100%

4． End of construction: October 2017

5． Start of operation: December 2017

6． Capacity: 158.5 ton/day

MELTEC IWAKI CO., LTD.