CHUGOKU MARINE PAINTS, LTD. (the “Company”) hereby announces that it has resolved to acquire Italo Belge Colori S.r.l. (“ITB”), an Italian coating manufacturer, through CHUGOKU PAINTS B.V. (“CPBV”), a core subsidiary in Europe, making ITB a subsidiary.

CPBV has entered into a share transfer agreement with the existing shareholders of ITB and expects to acquire all shares of ITB by February 28, 2025.

Amid an ongoing expansion of the CMP Group’s coating sales in Europe, production volume at CPBV’s factory in the Netherlands—the Group’s sole production facility in the region—has been growing. We expect the addition of ITB’s factory to the Group’s production base in Europe as part of this acquisition will help expand production capacity and shorten delivery times in the region, leading to an increase in sales volume.

Through this acquisition, the Group aims to further expand its business operations in Europe.