March 27th, 2024
JFE Shoji Corporation

Groundbreaking ceremony for electrical steel sheet processing and sales company in
the Republic of Serbia
JFE Shoji Corporation (President and CEO ： Toshinori Kobayashi ("the Company") is pleased toannounce that the groundbreaking ceremony for the newly established JFE Shoji Serbia d.o.o. Beograd("JSS") for electrical steel sheet processing and sales company was held in Indjija City, the Republic ofSerbia ("Serbia").

1. About the groundbreaking ceremony
The groundbreaking ceremony was held on March 18 and was attended by approximately 50 persons,including Mr. Aleksandar Vucic, President of the Republic of Serbia, Tomislav Momirovic, Minister ofDomestic and Foreign Trade, Mr. Vladimir Gak, Mayor of Indjija, and Mr. Akira Imamura, Ambassador,Embassy of Japan. From the Company, Mr. Kobayashi, Executive Vice President, and Mr. Hamauzu,President of JSS, attended the ceremony and prayed for the safety of the plant construction work.
"We believe that our new factory with the latest technology will certainly contribute to the automotive,
appliances and electrical machinery industries in Serbia and Europe," Kobayashi, Executive Vice
President said in a speech. "We are determined to establish a new plant in Europe for the first time."
Mr. Vucic, President of Serbia commented that "this investment is very important for Serbia as well,and I promise maximum support."

2. About Establishment of a new plant
In Europe, demand for motor cores is expected to expand due to increased demand for electric vehicle
driving motors in response to tough environmental regulations toward achieving carbon neutrality byEU in 2050 and increased demand for automotive motors used to improve automotive functions andconvenience.
Serbia, where we establish a new plant, is located near the center of the Balkan Peninsula and hasborders with many Eastern European countries.
Due to its prime location as a production base, many companies in the automotive manufacturing andelectric vehicle related industries have entered the market in recent years.
We intend to establish No. 1 position in global processing and distribution of electrical steel sheet as akey issue for our Seventh Medium-Term Management Plan.
In addition to our global four key regions in Japan, the Americas, China, and ASEAN, we establish aprocessing and sales base in Serbia as a base of Europe which is a growing market and build a supply
chain management. In this way, we will capture the growing demand for motor cores in Europe andstrengthen our business to realize No. 1 position in global processing and distribution of electrical steel
sheet.

JSS Profile
Company nameBusiness
President
Planned construction site
Capital
Employees
Total site area
FacilityCompletion time

JFE Shoji Serbia d.o.o. Beograd
Motor cores manufacture and sale
Masaomi HamauzuIndjija（about 40 km northwest of Belgrade, the capital）RSD 6.14 billion (Approx. YEN 7.8 billion)
Approx. 100
Approx. 100,000 ㎡
Press machine for motor core, continuous annealing furnace
January 2025 (planned) ※ Full-scale operation is expected
in July 2025.

■Mr. Vucic, President of Serbia was shaking his hands with Mr. Hamauzu, President of JSS.

【Reference】Image of the completed plant■ For more information: Public Relations Section, General Administration Department, JFE
Shoji Corporation +81-(0)3-5203-5055