News Release

2000.6.26Construction of New Chocolate Factory in Kanto Area

We have decided to add a chocolate factory to our existing Kanto Plant in Ibaraki Prefecture.
Currently we are producing industrial chocolate at the chocolate factory inside the Hannan Business Operations Complex. The reasons for deciding to add the new factory are those given below:

1. To meet the needs of our customers in the Kanto area, which is the area in Japan with the largest chocolate consumption.
2. To have a production capacity provided by combination of this new factory and the existing factory at Hannan enable us to deal with any market fluctuations immediately.
3. To add the equipment for 'moisture-holding chocolate' and to create new ranges of chocolate and a new market, as well.

Regarding the New Equipment

A Production line based on new roll refiners and conche', and mobile computer management systems will be installed for reduced labor requirements. The production environment constructed will conform to HACCP requirements.

A bulk delivery system will be employed to reduce our cstomers' industrial waste caused by large volume transporting with tank trucks and the like. Also, delivery to the cstomers' tanks reduces the lead time for faster customer service.

Outline of Construction
Estimated location: 2600-8, Kamidaira, Ago, Iwama-Machi, Nishi-Ibaraki-Gun, Ibaraki Prefecture
(Within our Kanto Plant premises)
Scale:(1) Total invested capital: 3.6 billion yen
(2) Total floor area extended: 8000 m2
              (2 floors with part 3 floors)
(3) Production capacity: Approx. 10,000 tons/year
(4) Construction period: Start in August 2000
                                                                                                End in July 2001

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