Kyowakogyosyo reases Investment in New Factory Project Amid Government Funding Approval

TOKYO, Aug 07 (Pulse News Wire) – Kyowakogyosyo CO.,LTD. (5971.T) announced changes to its investment plan for the construction of a new factory building and related equipment.

At a board meeting held on August 07, 2026, the total investment was revised to reflect additional costs associated with necessary machinery and facilities. The updated investment amount stands at ¥4.500 billion, representing an increase of ¥2.500 billion compared to the initial estimate of ¥2 billion. In addition, the company received notification of government funding approval through the Ministry of Economy, Trade and Industry's subsidy program aimed at promoting productivity improvements among mid-sized and small enterprises. The approved grant amount is set at ¥1.545 billion, which represents the upper limit of the subsidy.

Funding for the project will come entirely from internal resources, with the government subsidy expected to be received upon completion of the project. The company also adjusted the scheduled startup date from October 2027 to May 2028 due to the inclusion of detailed plans for the installation of new equipment. Despite these changes, the impact on the company’s current fiscal performance is anticipated to be minor. Any future adjustments to forecasts or significant developments will be promptly disclosed.