To whom it may concern
ARAKAWA CHEMICAL INDUSTRIES, LTD.
Head Office: 1-3-7 Hiranomachi, Chuo-ku, Osaka, Japan(Code No. 4968, Tokyo Stock Exchange Prime Market)
TEL +81 (0)6 6209-8500

Permanent shut down of production plant for Hydrogenated Hydrocarbon Resinat Arakawa Europe GmbH (Germany)

We hereby announce that our Board of Directors has resolved at the board meeting on September
27, 2022 to permanently shut down the production plant for ARKONTM, hydrogenated hydrocarbon resin(used for adhesives and bonding agents, additives for plastics, etc.) at our consolidated subsidiary,Arakawa Europe GmbH, as per mentioned below. After the permanent shut down of Arakawa Europe,
we manufacture at and supply the hydrogenated Hydrocarbon resin, ARKONTM, from Mizushima plantand Chiba Arkon Manufacturing Co. Ltd (in preparation for commissioning) and Arakawa EuropeGmbH will continue its business activities as a sales and marketing company in Europe.
In 1965, we developed ARKONTM, as a pioneer of a colorless and transparent hydrogenatedhydrocarbon resin, based on our own high-pressure hydrogenation technology, and in 1970 launched
a commercial production at Mizushima Plant (Kurashiki City, Okayama Prefecture).

In 2010, we took

over from The Dow Chemical Company the integrated production facility for hydrogenated hydrocarbon
resins located in a German industrial complex, thus establishing two production sites, one in Japanand the other in Germany. In 2018, we established the Joint Venture, Chiba Arkon Manufacturing Co.
Ltd. (in preparation for commissioning) with Cosmo Energy Holdings Corp. and Maruzen PetrochemicalCo., Ltd. to develop further the global business. We have been aiming to expand our hydrogenatedhydrocarbon resin business with three global bases in order to be able to respond to the expected
increase in global demand for hot melt adhesives for sanitary materials such as disposable diapers.
However, the production circumstance of the hydrogenated hydrocarbon resin in Germany has
deteriorated significantly due to the unprecedented high prices of natural gas and hydrogen and thedeterioration of the raw material procurement environment. In view of the prolonged situation in
Ukraine and the energy situation in Europe, we have decided to permanently shut down the productionof ARKONTM products in Germany on 31 March 2023.
After the shutdown of production at Arakawa Europe, we will supply ARKONTM resin continuously fromtwo plants, Mizushima and Chiba Arkon Manufacturing Co. Ltd.. The global sales and marketingstrategy will be restructured to ensure a stable supply and improve our competitiveness in thehydrogenated hydrocarbon resin business. Arakawa Europe will continue its business activities as salesand marketing organization in Europe.

・Outline of Arakawa Europe GmbH
(1) Name : Arakawa Europe GmbH
(2) Location : Hafenstr. 2, 04442 Zwenkau, GERMANY(3) Managing Director（Geschäftsführer）: Uwe Holland(4) Date of foundation : 9th November, 1998
(5) Outline of business : Manufacture and sale of hydrogenated hydrocarbon resins(6) Production capacity : Approx. 20 thousand tons/year(7) Fiscal year : End/December(8) Amount of capital : 52 thousand Euro
(9) Shareholder : Arakawa Chemical Industries, Limited 100%