Star Micronics Co., Ltd. announced that the Board of Directors has resolved to renovate its Kikugawa Factory and construct a new factory as a part of its Machine Tools Segment activities. Brief details are presented as follows. Purpose: Star Micronics will look to increase its production capacity to meet the growing global demand for Swiss-Type CNC Automatic Lathes.

The Company will also build a new factory in Japan to assemble high value-added products and cutting-edge models. In addition to putting in place a monthly production capacity of 100 units, efforts will be made to strengthen the Company?s ability to respond to geopolitical risks through these means. Star Micronics current Kikugawa Factory building was constructed more than 35 years ago.

The decision to renovate the Factory is therefore geared toward improving the Company?s BCP by strengthening its response to earthquakes and other disasters. Star Micronics will work to increase operational and production efficiency, improve quality, and reduce costs by automating operations through such measures as the introduction of robots and the promotion of Digital Transformation (DX) to create a smart factory. Star Micronics will install solar panels and other equipment and promote environmentally friendly aims to obtain ZEB certification and contribute to the realization of a sustainable society.

Overview of the Kikugawa Factory Renovation: Name: Kikugawa South Factory (tentative). Location: Misawa, Kikugawa City, Shizuoka Prefecture. Activities: Manufacture of core components.

Structural overview: Steel-framed three-story building. Start of construction: July 2024 (planned). Start of operations: November 2025 (planned).

Overview of the New Factory: Name: Makinohara Factory (tentative) Location: Nunohikihara, Makinohara City, Shizuoka Prefecture. Activities: Body assembly of cutting-edge models. Structural overview: Steel-framed two-story building.

Building area: Approx. 6,900 m2 (approx. 2,090 tsubo).

Total floor area: Approx. 9,100 m2 (approx. 2,760 tsubo).

Total project expenses: Approx. ¥5 billion. Start of construction: May 2025 (planned).

Start of operations: July 2026 (planned).