News Release

Establishment of MELTEC IWAKI CO., LTD. and Melting of Incinerated Ash to Further Expand the Recycling Business

DOWA ECO-SYSTEM CO., LTD. (14‐1 Sotokanda, 4‐chome, Chiyoda‐ku, Tokyo; Capital: ¥1 billion; President: Kenichi Sasaki), a subsidiary of DOWA HOLDINGS CO., LTD. (Same location; Capital: ¥36.4 billion; President: Masao Yamada), has established MELTEC IWAKI CO., LTD. (Same location; Capital: ¥10 million; Representative director: Minoru Tobita; Hereafter referred to as the New Company). A new plant for melting incinerated ash and manufacturing artificial aggregates will be built in Iwaki City in Fukushima Prefecture, making it the second plant of the DOWA Group. Moving forward, the related legal procedures for the construction of the plant will be proceeded.

Much of the incinerated ash generated by municipal waste incineration plants up until now has been deposited in landfill facilities. In light of the growing needs to save on landfill capacity and recycle resources, more and more municipalities are implementing recycling programs, such as adopting melting methods instead of burying waste in landfills. DOWA ECO-SYSTEM currently produces artificial aggregate by melting incinerated ash and then separating and recovering valuable metals such as gold at its wholly owned subsidiary MELTEC in Oyama City in Tochigi Prefecture. All of the MELACE® artificial aggregate manufactured by MELTEC is used as a construction material in public works performed in Tochigi Prefecture. The quality of these aggregates is highly regarded.

Building on these achievements, DOWA ECO-SYSTEM has established the New Company to handle the same recycling process conducted at MELTEC. It will accept incinerated ash from Iwaki City and other municipalities in and around Fukushima Prefecture. Demand for artificial aggregate to be used in the construction of roadbeds and other structures are expected to grow in the surrounding areas. In addition, the group company Kosaka Smelting and Refining Co., Ltd. will recycle the valuable metal recovered in the same way it is recovered at MELTEC. The establishment of these two plants at the New Company and MELTEC will expand sales, stabilize the process, and contribute to the recycling of incinerated ash.

By expanding the incinerated ash melting business and the manufacture of artificial aggregate, DOWA ECO-SYSTEM will contribute to the recycling of incinerated ash needed by society and will continue to expand its environment and recycling business.

Outline of the New Company’s plant (planned)

Location	Yotsukura-machi Yoshinosawa 1-75, Iwaki City, Fukushima Prefecture, Japan. (Iwaki Yotsukura Core Industrial Park)* * The planned construction site is located on prefectural land. A formal land transfer agreement will be concluded after the vote of the prefectural assembly.
Start of construction	July 2016
End of construction	December 2017
Start of operation	March 2018
Materials processed	Incinerated ash, etc.
Capacity	158.5 ton/day