JFE Engineering Corporation
J&T Recycling Corporation
KANKYOU NO MIKATA Inc.

J&T Recycling Corporation (President: Tetsuo Tsuyuguchi, Headquarters: Yokohama City, Kanagawa Prefecture, hereinafter "J&T Recycling"), a group company of JFE Engineering Corporation (President: Gen Oshita, Headquarters: Chiyoda-ku, Tokyo, hereinafter "JFE Engineering"), has reached an agreement with KANKYOU NO MIKATA Inc. (President: Kazuyoshi Watanabe, Headquarters: Yaizu City, Shizuoka Prefecture, hereinafter "KANKYOU NO MIKATA") regarding a capital and business alliance as follows:

1.    Purpose of Capital and Business Alliance
In recent years, Japan has seen an increasing demand for recycling to form a recycling-based society, in addition to proper waste treatment, as part of promoting a circular economy towards achieving a sustainable society.
To respond swiftly to these market changes, J&T Recycling and KANKYOU NO MIKATA will enter into a capital and business alliance to create business synergies through collaboration between both companies.
Particularly in the Tokai region, they will jointly aim to realize a locally-produced and consumed value chain through waste recycling.

2.    Details of Capital Alliance
KANKYOU NO MIKATA will issue new shares through third-party allocation, which will be subscribed by J&T Recycling. As a result, J&T Recycling's ownership ratio will become 21.23%, making KANKYOU NO MIKATA an equity-method affiliate of J&T Recycling.

3.    Details of Business Alliance
(1) Examination and implementation of joint business for collection and recycling of waste plastics, etc.
(2) Examination and implementation of joint business for food waste collection
(3) Examination and implementation of collaboration in disaster waste management and public-private partnership projects in Shizuoka Prefecture
(4) Other joint development of new recycling technologies and exploration of new recycling businesses