The Japan Steel Works, Ltd. announced that aiming for further growth by accelerating global expansion of the Plastics Machinery Business, the Injection Molding Machinery Business, and the Industrial Machinery Business in the Industrial Machinery Segment, the Company will establish a new Global Strategy Headquarters in the Head Office to formulate and promote global strategies in cooperation with business divisions, support and promote strategy formulation tailored to the characteristics of each region and area, strengthen the supervision and governance of overseas subsidiaries, and promote efficiency in administrative operations. The said headquarters will play a central role in global efforts to resolve materiality. The company also announced that to further expand the after-sales service business in the Plastics Machinery Business, the company will establish a new Plastics Machinery Solutions Business Division.

The Company group, a manufacturer of integrated plastic processing machinery, will as a result build a system to provide services for all plastic machinery products in an integrated manner, and leverage its expertise to further improve customer satisfaction and rovide new value, such as stable operation of plastic manufacturing and processing machinery, which is inhigh demand not only for economic growth, but also for the realization of a low-carbon society, and solving customer issues for the development of new applications. Establishment of Materials and Engineering Business Division: As disclosed in the "Notice Concerning Absorption Merger of Consolidated Subsidiaries (Simplified Merger/Short Form Merger)" dated January 19, 2026, the Company will merge with and absorb Japan Steel Works M&E Inc. (hereinafter referred to as "M&E"), the Company's wholly-owned subsidiary, on April 1, 2026, for the purposes of sustainable growth in the Material and Engineering Business, accelerating the creation of synergies within the Group, and strengthening corporate governance. Along with this, the Company will establish a new Materials and Engineering Business Division as an organization responsible for the Materials and Engineering Business, and will establish Muroran Plant as a manufacturing base for the said business to take over the organization and functions of the M&E Muroran Plant.

As a result, the company will steadily meet demand for material products for nuclear power generation and high-efficiency thermal power generation, which from the perspective of securing energy security and low-carbon power sources in the long term, and against the backdrop of the rapid spread of artificial intelligence, currently continues its expansion. Establishment of Photonics Office and Elimination of New Business Promotion Headquarters: With the aim of expanding the photonics business centered on materials for semiconductors and opticaldevices such as gallium nitride (GaN) and lithium niobate (LN), the organization and functions related to the said business of the New Business Promotion Headquarters will be separated, and a new Photonics Office will be established. As a result, the company will strive to significantly expand the business, improve the management capabilities and strengthen governance, with the aim that it will become the core business in the future, while accelerating the efforts to realize a super-smart society.

In addition, the New Business Promotion Headquarters will be eliminated, and the function of commercializing research items will be transferred to the Innovation Management Headquarters, while part of the Composite Material Business will be transferred to the newly-established Materials and Engineering Business Division.