Rheon Automatic Machinery Co., Ltd. announced that it has resolved, at a meeting of the Board of Directors held on May 14, 2025, to make the following changes to the status of the consideration for the construction of a new plant, as announced in the Notice concerning Commencement of Consideration for Construction of New Plant at Consolidated Subsidiary dated August 8, 2024. Reason for change: the company has been considering building a new plant for the Company's US-based consolidated subsidiary. However, the impact of the policy shift resulting from the change in the US administration is difficult to predict, and the company is unable to foresee the impact this will have on the project.
Since the proposed site is adjacent to the existing plant and the property is effective for future plant redevelopment, the company will acquire the property. However, the company will postpone the operation schedule to continue the study and proceed with the plant construction plan. Details of changes: Proposed site (construction site) changes from California, USA to Irvine, California, USA (adjacent to Orange Bakery Plant 1).
Operation schedule changes from April 2026 onwards to April 2027 onwards. Purpose of the new plant are as a model experimental plant for smart factories; Demonstration of food processing machinery developed by the Company and Strengthening of production capacity to meet active consumer demand in the US. Estimated investment amount: About USD 60 million (Acquisition costs of the property, equipment installation costs, production equipment installation costs, etc.) However, the costs may vary depending on construction costs.
Future prospects: The impact on the company?s business performance and the details of the plant construction will be disclosed separately once determined. However, the impact of this matter on the business performance for this fiscal year is expected to be minimal.
