Announce易游体育app官网入口t on conclusion of basic agree易游体育app官网入口t on capital and business alliance between Kobe Steel and Miura involving Miura's acquisition of Kobelco Compressors' shares to form a joint venture

Kobe Steel, Ltd. announces that Kobe Steel and Miura Co., Ltd. have resolved to conclude a basic agree易游体育app官网入口t to proceed with detailed discussions for the capital and business alliance concerning the standard compressor business^*) at the respective Board of Directors 易游体育app官网入口etings held today.

易游体育app官网入口 Steel has been conducting the standard compressor business in cooperation with its wholly owned subsidiary 易游体育app官网入口lco Compressors Corporation. 易游体育app官网入口 Steel’s standard compressor business has a high market share in Japan and the Asian region and has provided a stable supply of high-quality compressors to various industries.

Miura has a high reputation in Japan as a forerunner of 易游体育app官网入口ergy-saving and eco-fri易游体育app官网入口dly boilers. Miura holds the largest market share in the industrial once-through boiler market.

Since 2008, 易游体育app官网入口 Steel and Miura have jointly developed steam-driven compressors that use steam as a power source to produce compressed air, and since then the companies have developed steam generators and waste heat recovery compressors. By utilizing the exhaust heat from air compressors in boilers, the companies have significantly reduced the energy consumption required for boiler operation.

The collaboration of 易游体育app官网入口 Steel and Miura will enable further energy saving and reductions of CO₂ emissions through supplying utility equip易游体育app官网入口t that combines technologies developed in the fields of steam and air. For example, the running costs can be reduced by 36% and CO₂ emissions by 36% in main products. The companies will also work toward the realization of one-stop services utilizing their sales and after-sales service networks.

To date, Kobe Steel and Miura have been collaborating in business without a capital relationship, but the companies came to the recognition that strengthening the partnership would leverage the synergies as described above and enhance the competitiveness of both companies, which commonly handle the utilities of air and steam, as they make more effective use of each other's resources through the alliance described in Section 2 (Outline of the Capital and Business Alliance) below. Based on this belief, Kobe Steel and Miura have decided today to conclude the basic agree易游体育app官网入口t.

易游体育app官网入口 Steel and Miura believe that the realization of this capital and business alliance will be the beginning for 易游体育app官网入口lco Compressors to further grow as the leading standard compressor manufacturer in Asia.

The 易游体育app官网入口 Steel Group, also known as the 易游体育app官网入口LCO Group, taking advantage of its diverse businesses, aims to provide efficient utilities that reduce CO₂ emissions and meet customer needs in Japan and overseas, mainly for the markets in China and Southeast Asia. It is the mission of the Group to contribute to creating a green society through these technologies toward achieving carbon neutrality by 2050 as declared by the Japanese govern易游体育app官网入口t. The KOBELCO Group has always strived to and will continue to provide solutions to the needs of society by making the best use of the talents of our employees and our technologies with a view to realizing a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure, and prosperous lives.

The Mura Group has been developing businesses in the fields of heat, water treat易游体育app官网入口t and environ易游体育app官网入口tal science with steam boilers as the core products, and has been providing solutions and products to improve the efficiency of energy systems throughout the plant through the effective use of heat and water, including the effective use of unused heat. In the future, the Miura Group will continue to create innovative products and systems that will reduce environ易游体育app官网入口tal impact in response to global issues related to reduction of greenhouse gas emissions, energy conservation, and other areas. The Miura Group will continue to contribute to creating a society that is environ易游体育app官网入口tally friendly and ways of living that are clean and comfortable through our work in the field of the energy, water, and environ易游体育app官网入口t, as stated in its corporate philosophy, with the aim of becoming the best partner not only for customers in Japan but also for customers around the world.

Currently, Kobe Steel undertakes the manufacture of standard compressors while Kobelco Compressors carries out the sale of standard compressors. Kobe Steel has decided to imple易游体育app官网入口t an absorption-type company split to succeed the manufacture business of standard compressors to Kobelco Compressors and integrate the standard compressor business into the company. For details of the company split, please refer to the Announce易游体育app官网入口t on Company Split (Simplified Absorption-Type Split) and Succession of Standard Compressor Business to Wholly Owned Subsidiary, announced by Kobe Steel and Miura today.

In this framework, it is assumed that Miura will acquire 49% of the shares of 易游体育app官网入口lco Compressors, and 易游体育app官网入口lco Compressors will thereby become a joint venture of 易游体育app官网入口 Steel and Miura.

Through integrating the standard compressor business into Kobelco Compressors and converting the company into a joint venture, Kobe Steel and Miura aim to work together to imple易游体育app官网入口t strategies centered on the standard compressor business and achieve synergies as described in Section 1 (Reason for the Capital and Business Alliance) above.

If there are any matters to be disclosed regarding the impact on the future business results of Kobe Steel and Miura in the course of the discussions on the capital and business alliance and other matters, we will make announce易游体育app官网入口t promptly.