Notice of Establishment of a New Company and Acquisition of Fixed Assets (New Factory)
TSUGAMI CORPORATION (the "Company") hereby announces that Precision Tsugami (Hong Kong) Limited, a consolidated subsidiary of the Company, will establish a new company and acquire a new factory.
1. Overview
A new company will be established and a new factory will be acquired to increase production capacity to meet growing demand in China.
A wholly owned subsidiary of Precision Tsugami (China) Corporation Limited, the shares of which are listed on the Stock Exchange of Hong Kong, and which is located in Hong Kong.
Investment (acquisition of new factory)
Invested property: approx. 50,000 sq. meters of land and a factory and attached facilities of approx. 25,800 sq. meters in the Pinghu Economic and Technological Development Zone
Investment value
Acquisition of land: approx. 33.75 million yuan (approx. 575 million yen)
Purchase of factory and attached facilities: approx. 51.33 million yuan (approx. 875 million yen)
Other capital will be allocated to the future extension and reconstruction of the factory, purchase of
production factories, working capital, etc.
(Exchange rates: as of September 15, 2021, 1 US dollar is 6.449 Chinese yuan, 1 US dollar is 109.65 Japanese yen, and 1 Chinese yuan is 17.04 Japanese yen)
Schedule
Investment agreement dated September 17, 2021, is signed with Pinghu Economic and Technological Development Zone Committee.
New company is scheduled to be established in October 2021.
The factory is scheduled to start operation in April 2022 after completion of repair work and maintenance.
Outlook
The impact of this investment on the Company's consolidated financial results for the fiscal year ending March 31, 2022, will be negligible. The Company will make prompt announcements if a revision becomes necessary.
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Disclaimer
Tsugami Corporation published this content on 17 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 September 2021 04:11:06 UTC.
TSUGAMI CORPORATION is a Japan-based company mainly engaged in the manufacture and sale of automatic lathes, grinders, machining centers, rolling machines. The Company operates through Japan, China, India, Korea and other region five geography segments. The Company is also engaged in the related research and other services. The products include CNC precision automatic lathes, including independent opposed gang tool type, opposed gang tool type, gang-tool slede & turret and chuck work; CNC lathes, including M08JL8-II, M06JC-II; turning centers, including TMA8J, TMA8H and TMA8F; machining centers, including vertical machining centers and horizontal machining centers; grinding machines, including CNC cylindrical grinding machines and small grinding machines; rolling machines, including CNC precision rolling machines and precision rolling machines.
TSUGAMI CORPORATION 
