August 4, 2023
Air Separation Unit and Rare Gas Production Unit to be installed at Kimitsu Sanso Centerto Ensure a Stable SupplyTaiyo Nippon Sanso Corporation (President: Kenji Nagata; hereinafter "TNSC"), a Japanese industrial
gas company of Nippon Sanso Holdings Group, and Nippon Steel Corporation (President: EijiHashimoto; hereinafter "Nippon Steel") have decided to install an energy-saving cutting-edge air
separation unit at Kimitsu Sanso Center Co., Ltd. (Kimitsu City, Chiba Prefecture; President: MasahiroUehara; hereinafter "Kimitsu SC") established as a joint venture of TNSC and Nippon Steel.
TNSC has also decided to install units to produce rare gases (neon, krypton, and xenon), for which Japanrelies on imports for most of its demand, thereby boosting domestic production.
1. Background
Kimitsu SC was established in September 2022 to streamline the production of various industrial gaseson the premise of the East Nippon Works (Kimitsu area) of Nippon Steel.
To ensure a stable supply of oxygen, nitrogen, and argon gas to East Japan Works (Kimitsu area) ofNippon Steel, as well as to supply high-quality products to TNSC, TNSC and Nippon Steel have decided
to install an energy-saving, cutting-edge air separation unit at Kimitsu SC.
TNSC will also install a neon purification system and a krypton and xenon production system.
Rare gases (krypton and xenon) are harvested as byproducts during the manufacturing of oxygen,nitrogen, and argon in large-scale air separation units. For this reason, Japan, where there are very few
large-scale air separation units, relies on imports for the majority of its rare gases. Rare gases are usedprimarily in fields such as electronics, lighting, outer space, and energy conservation. Although demandhas been increasing globally in recent years, the reality is that supply is becoming tight.
The Japanese government has identified these rare gases as crucial for ensuring a stable supply in thesemiconductor manufacturing process and has approved TNSC's "Supply Security Plan" as eligible forsupport by the Ministry of Economy, Trade and Industry under the Economic Security Promotion Act.
Although TNSC manufactures rare gases at the Oita Plant of Kyushu Sanso Center Corporation("Kyushu SC Oita"), a group company, and TNSC shall establish a framework for a stable supply of raregases to customers by enhancing domestic production.

- 1 -2. Overview of the air separation unit to be installed at Kimitsu SC
Production capacity:

Oxygen gas

60,000 Nm3/h

Nitrogen gas

120,000 Nm3/h

Liquefied argon

2,100 Nm3/h

Scheduled start of operation: End of June 2025
3. Overview of the rare gas unit to be installed by TNSC
1) Installation location:

Kimitsu SC

2) Neon purification system
Production capacity:

27 million liters/yr

Scheduled start of operation: March 2026
3) Krypton and xenon manufacturing system
Production capacity:

1 million liters/yr of krypton and 125 thousand liters/yr of xenon*Kimitsu SC manufactures krypton/xenon mixed gas(intermediate product), and Kyushu SC Oita purifies it for thefinal product. The combined production capacity of Kyushu SC
Oita, and Kimitsu SC will be 2 million liters/yr of krypton and250 thousand liters/yr of xenon.

Scheduled start of operation: August 2025
4. Kimitsu Sanso Center Co., Ltd.
Location:

1 Kimitsu, Kimitsu City, Chiba Prefecture(on the premises of Nippon Steel Corporation East Japan Works (Kimitsuarea))

Established:

September 1, 2022

Capital:50 million yen

Investment ratio: TNSC 50%, Nippon Steel 50%[Company Overview]
Taiyo Nippon Sanso Corporation
Business description: Manufacture and sale of various industrial gases such as oxygen, nitrogen, argon,
LP gas, gas for medical uses, and specialty gases, manufacture and sale ofwelding equipment and materials, gas-related devices, and, air separationequipment, assembly, processing, inspection of electrical components, andequipment maintenance
Established:
October 30, 1910
Incorporated:
February 4, 2020Capital:
1.5 billion yen
Shareholder:
Nippon Sanso Holdings Corporation (Investment ratio: 100%)
Revenue:420.4 billion yen*
*Note: This figure shows the revenue of Japan for Nippon Sanso Holdings
Corporation in FYE2023- 2 -