Integration of DOWA ECO-SYSTEM subsidiaries in the Akita and Okayama areas

July 9, 2026
DOWA HOLDINGS CO., LTD.

DOWA ECO-SYSTEM CO., LTD. (14-1, Sotokanda 4-Chome, Chiyoda-ku, Tokyo; Capital: 1.0 billion yen; President: YANAI Yasuharu, hereinafter “DOWA ECO-SYSTEM”), a subsidiary of DOWA HOLDINGS CO., LTD. (same location; Capital: 36.4 billion yen; President: FUKUDA Kensaku), has decided to integrate certain subsidiaries in the Akita and Okayama areas, effective April 1, 2027.
DOWA ECO-SYSTEM has operated its resource recycling, waste treatment, soil remediation, and other businesses through separate legal entities organized by business category and region, enabling flexible and agile business operations. In recent years, however, growing environmental awareness and the advancement of the circular economy have led to increasingly sophisticated and diverse customer needs, requiring comprehensive and optimized environmental solutions rather than individual services. In response to these changes, DOWA ECO-SYSTEM will integrate certain subsidiaries in Akita and Okayama Prefectures, where multiple subsidiaries are located in close proximity.

Integration Scheme
●Scheduled Date of Merger
April 1, 2027 (for both the Akita and Okayama areas)

●Akita Area
ECO-SYSTEM HANAOKA CO., LTD. will be the surviving company in an absorption-type merger with three other companies.
Upon the merger, the surviving company will change its name to DOWA ECO-SYSTEM AKITA CO., LTD.

●Okayama Area
ECO-SYSTEM OKAYAMA CO., LTD. will be the surviving company in an absorption-type merger with two other companies.
Upon the merger, the surviving company will change its name to DOWA ECO-SYSTEM OKAYAMA CO., LTD.

Benefits of Integration
Through this integration, DOWA ECO-SYSTEM will consolidate its group companies that have been operating separately within the same area, improve organizational and site efficiency, and further strengthen its business foundation by integrating the technologies, facilities, and expertise of each company. This will enable faster decision-making and a more flexible business management structure.
In addition, by integrating the treatment and recycling services offered by each company, DOWA ECO-SYSTEM will be able to respond to a broader range of customer needs, from waste treatment to recycling, while providing optimal solutions and one-stop services. Furthermore, enhanced acceptance and processing capabilities will support stable and continuous service provision, contributing to higher customer satisfaction.
Through this integration, DOWA ECO-SYSTEM will strengthen its regional competitiveness and further enhance the value of the environmental solutions it provides toward the realization of a recycling-oriented society.

Other Information
Contracts, permits, licenses, and other rights and obligations held by the companies subject to the integration will, in principle, be transferred to the respective surviving companies in accordance with Article 750 of the Companies Act of Japan.
As this integration is between wholly owned consolidated subsidiaries of DOWA HOLDINGS CO., LTD., the impact on the consolidated financial results for the current fiscal year is expected to be minimal.
 

[Overview of DOWA ECO-SYSTEM CO., LTD.]
1. Head Office: 14-1, Sotokanda 4-Chome, Chiyoda-ku, Tokyo
2. Established: October 2006
3. Capital: 1.0 billion yen 
4. Representative: YANAI Yasuharu, President and Representative Director  
5. Employees: Approx. 3,700 (DOWA ECO-SYSTEM consolidated, as of the end of March 2026) 
6. Shareholder: DOWA HOLDINGS CO., LTD. (100%)
7. Business: Environmental Management and Recycling
   (Resource Recycling, Waste Treatment, Soil Remediation, Logistics, Consulting)