As outlined in its press release "Start of Study on the Suspension of One Cement Kiln Operations" dated April 28, 2023, Tokuyama has taken steps to consider putting in place an appropriate cement production system. Taking into consideration a comprehensive range of factors, including the recent sharp drop in Japanese cement demand, rising fixed costs required to maintain manufacturing facilities, and the impact in the external environment, the Company determined that a production system with two kiln lines is optimal, and has accordingly suspended operations at one kiln line. Meanwhile, there will be no impact on cement sales to the Japanese market as a result of this suspension.