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We, Nippon Steel Drum Co., Ltd. (hereinafter referred to as "Nippon Steel Drum"), have decided to purchase the idle land owned by Hitachi, Ltd. located in Minami-hama, Yanai City, and to construct a new factory. The new factory will be our fifth factory and will be named "Yanai Factory." The purpose and overview of the Yanai Factory construction are as follows: 1. Purpose of Yanai Factory Construction Sanyo Drum Can Industry Co., Ltd. (hereinafter referred to as "Sanyo Drum"), a 100% subsidiary of the Nippon Steel Drum Group and a manufacturing base in the Chugoku and Shikoku regions, has determined that it has reached the time for aging renewal several years ago. As a result of examining the aging renewal of Sanyo Drum, it was found that a fundamental aging renewal of the factory and equipment is difficult at the current site mainly due to the site area. We believe that the Yanai Factory will be located in a place that can accurately and stably respond to customer needs in the Chugoku and Shikoku regions for the future, and we have decided to construct it there. 2. Overview of Yanai Factory (1) Operation Schedule: Completion of trial operation in June 2022 (planned), start of commercial production in September 2022 (planned) (2) Location: 670-8 Minami-hama 3-chome, Yanai City, Yamaguchi Prefecture (currently the idle land of Hitachi, Ltd.)