SHINAGAWA REFRA CO.,LTD. [5351.T]
TOKYO, Apr 08 (Pulse News Wire) – Shinagawa Refra CO.,LTD. (5351.T) announced today that its subsidiary, Shinagawa Refractories Australasia Pty Ltd, has finalized compensation agreements with the Western Australian government for land acquisition and factory relocation.
The total compensation amount received by Shinagawa Refractories Australasia is approximately A$35.7 million for the property located at Lot 34 Beard Street, Naval Base, Kwinana, WA, Australia. Under the agreement, the Western Australian government will acquire the land based on the Land Administration Act 1997. In return, Shinagawa Refractories Australasia will continue operating the existing facility for approximately two and a half years through a lease arrangement. The net gain from the transaction is estimated to be around A$34.0 million, calculated using the average exchange rate of 1 AUD = ¥109.04 during the fiscal quarter ending March 2026.
This transaction will result in a special profit of approximately ¥3,712 million yen being recorded in the consolidated financial results for the first quarter of the fiscal year ending March 2027. The impact on the consolidated earnings will be reflected in the fiscal year ending March 2027 due to the consolidation period of the subsidiary extending from January 1, 2026, to December 31, 2026. Looking ahead, Shinagawa Refra plans to conclude a land purchase contract for the new site in April 2026. Construction of the new factory is scheduled to begin immediately thereafter and is expected to commence operations in September 2028.
The current Kwinana plant will remain operational until the new facility becomes operational.
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