(Change in Disclosure) Notice Regarding Changes to the DMC and EMC Plant Construction Plan in the United States

Details of the Plant Construction Plan Changes

Regarding the construction plan of dimethyl carbonate (DMC) and ethyl methyl carbonate (EMC) plants in Louisiana, USA, the capital investment amount has been increased from approximately USD 500 million to approximately USD 700 million, and the start of operations has been postponed from November 2026 to the first quarter of fiscal 2027. The main reasons for the increase are soaring material prices, rising construction costs, additional tariff measures, and schedule impacts due to delayed equipment delivery.

Additional Capital Injection and Future Outlook

Accompanying the increase in capital investment, an additional capital injection of USD 200 million is planned for the U.S. subsidiary, UBE C1 CHEMICALS AMERICA, INC., raising its capital from USD 200 million to USD 400 million. DMC and EMC are primarily raw materials for lithium-ion battery electrolytes. Although demand growth is moderate due to a slowdown in EV adoption, demand for backup power uses in AI data centers remains strong. As the sole manufacturer and supplier in the U.S., it will contribute to stable supply and strengthening the industrial base. The impact on consolidated business results is expected to be minimal.