Nippo Ltd. announced that its Board of Directors voted on March 28, 2024, to enter into a capital and business alliance agreement with TBM Co., Ltd., corporation and that the two companies executed the agreement. Under its Medium-Term Management Plan 2025, Nippo has striven to establish a new business model and develop products and materials that contribute to the environment. The two companies decided to enter into an alliance having concluded that combining TBM's strengths--i.e., its environmentally-friendly Limex material--with Nippo's strength in precision plastic molding technology, would generate business synergies and thus enhance corporate value over the mid-to-long term. Limex is an inorganic filler-dispersion composite material developed by TBM containing more than 50% inorganic materials such as calcium carbonate. It is attracting much attention as an eco-friendly alternative to plastic and paper that can significantly reduce carbon dioxide emissions over through its reduced use of petroleum-derived plastic. Nippo and TBM apply their aforementioned strengths in specific areas with a view to spurring further development of both companies' businesses and driving corporate value. Moving forward, the parties will discuss details, including the specific division of roles. (1) Outsourcing the manufacturing of TBM's eco-friendly Limex Pellets to Nippo's plant in Vietnam. (2) Joint development and production of new Limex materials using Nippo's engineering plastics, and development of applications for these materials in industrial components. (3) Joint development and production of new Limex materials using biodegradable plastics with a view to opening up new business in the agricultural, fisheries, and forestry sectors, and development of applications for these materials.(4) Other areas the two companies agree upon following discussions. In undertaking the business alliance, the two companies will share their technical information assets to pave the way for development and delivery of new products and services, and to lay foundations on which both companies can seek to build a sustainable competitive advantage. Moreover, to further strengthen the ties that bind the parties and make their business alliance
ever sturdier and more resilient, Nippo will acquire a stake in TBM by investing in some of the new shares issued by TBM through a third-party allotment.