(Note) This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.

December 22, 2021
Company name: Tokuyama Corporation
Representative: Hiroshi Yokota,President and Representative Director(Code No. 4043, First Section TSE)
Contact: Tetsuya Nakano, Manager
Corporate Communications & Investor Relations Dept.
TEL: +81-3-5207-2552

Notice Concerning Establishment of Joint Venture (Subsidiary)

Tokuyama Corporation (hereinafter referred to as “the Company” or “Tokuyama”) hereby announces that, ata Board of Directors’ meeting held on December 22, 2021, the decision was taken to establish a joint venturein Korea with SK Geo Centric Co., Ltd. (hereinafter referred to as “SKGC”) for the purpose of
manufacturing and selling high-purity isopropyl alcohol (IPA) for the electronics industry.
1. Purpose of Joint Venture Establishment
Due to the advances made in 5G, IoT, AI, DX and other technologies, the semiconductor market is expectedto continue expanding over the medium to long term. As a result, demand for high-purity IPA used in thesemiconductor manufacturing process is forecast to gradually increase. In addition, with the progress being
made in the miniaturization of semiconductor devices, customer demands for higher quality and stable supply
are ever increasing.
Manufactured by a unique, direct hydration method that features low concentrations of impurities, Tokuyama
has to date marketed high-purity IPA, mainly in Japan, Taiwan, China and Southeast Asia. In this manner, theCompany has maintained an unwavering commitment toward improving its technology in a bid to meetcustomer needs.
With the establishment of this joint venture, Tokuyama will build an integrated production system in Korea
that extends from propylene, the raw material produced by SKGC, to high-purity IPA. By combining its
strengths in high-purity IPA manufacturing technology and quality control capabilities with SKGC's strong
presence in Korea, the Company will establish a new production and sales system to meet the needs of
Korean customers.
This initiative is part of the Company’s efforts to transform its portfolio, a cornerstone of theMedium-Term Management Plan 2025. and will contribute to the growth of the electronics field, which is
positioned as a growth business.
12. Outline of Joint Venture
(1)

Name

STAC Co., Ltd.

(2)

Location

Ulsan City, Korea(3)

Name and Title ofYet to be decided

Representative(4)

Business

Production and sale of high-purity IPA(5)Capital

60 million US dollars (Equivalent)(6)

Date of Establishment

July 2022 (Planed)(7)

Major Shareholder andTokuyama Corporation

50%

Ratio of Shareholding

SK Geo Centric Co., Ltd.

50%

3. Outline of Joint Venture Partner
(1)

Name

SK Geo Centric Co., Ltd.

(2)

Location

26, Jong-ro, Jongno-Gu, Seoul 03188, Korea(3)

Name and Title ofPresident & CEO

Na, Kyung-soo

Representative(4)

Business

Petrochemical company(5)

Capital2,851,449 million Korean won(6)

Date of Establishment

January 1, 2011

(7)

Major Shareholders andRatios of Shareholdings(8)

SK Innovation Co., Ltd.

100.00%Relationships between

CapitalTokuyama and the relevant company have nothe Parties

Relationshipsignificant capital relationship.

Personnel

Tokuyama and the relevant company have noRelationshipsignificant personnel relationship.

Transaction

Tokuyama and the relevant company have noRelationshipsignificant transaction relationship.

Status as a

The relevant company does not belong to Tokuyama’s

Related Party

related parties.

4. Timetable(1)

Board of Directors’ resolution date

December 22, 2021

(2)

Joint venture agreement date

December 28, 2021 (Planned)(3)

Business launch dateJuly 2024 (Planned)

5. Impact on Business Performance
The impact of the establishment of this joint venture on the consolidated full-year earnings forecast for thefiscal year ending March 31, 2022, will be minor, but the Company will promptly give notice if the earnings
forecast is revised.
2