Construction of Saitama Plant was completed on November 2, 2015. Saitama Plant is a dedicated facility for the production of automobile parts, a key focus of the Company’s operations in recent years. As such, Advanex expects the plant to contribute significantly to operational expansion as the Company seeks to fulfill the targets of the current medium-term management plan. As a proponent of the “smart plant” concept, Saitama Plant will boast three features not seen in conventional factories. First, the plant is designed to be automated throughout all phases of operation, from receipt of materials through processing, heat-treatment and quality inspection to packaging. This design not only enables the number of operators to be minimized but also ushers in unmanned nighttime operation. Second, the status of all operations and progress throughout the plant can be confirmed on a single monitor. Machinery and computers are linked on a network so that any abnormalities can be detected at a glance in a timely manner, enabling exceptionally thorough management. Third, the plant is built with care for the environment in mind. The ceilings and outer walls adopt a special insulating design to minimize energy requirements for air conditioning even in midsummer, when temperatures in the city of Honjo, Saitama Prefecture, can approach 40°C. Other energy-saving design elements include abundant use of natural light and adoption of LED lighting throughout. Equipment is installed for the recovery of vaporized lavage fluid, reducing atmospheric emissions and enabling reuse to save on solvent costs. With the construction phase completed, equipment is now being brought in and samples are being tested, in preparation for start of mass production around March 2016. Later, Advanex plans to obtain certification for Saitama Plant under TS16949, the international quality management system for automotive industry, begin operations for major new customers, and increase production capacity with the start of phase two of plant construction.