JSR Corporation(“JSR”) announced today that it transferred all of its 30% shares held in Japan Fine Coatings Co., Ltd. (“JFC”) to Covestro Japan Ltd. (“Covestro Japan”) and dissolved the joint venture on January 14, 2022. JFC was previously managed as a joint venture with Covestro Japan.

JFC was established in 1982 as a 50-50 joint venture between our JSR and Desoto (DSM acquired Desoto in 1995), and has been developing UV curable coating materials business for optical fiber in Japan.　JFC's UV curable coating materials for optical fiber are mainly used in the telecommunications industry and are recognized in the market as high-performance products.

In light of the need for integrated global management of this business and the Company's business portfolio, JSR has been gradually reducing its stake since 2016. JSR has reached an agreement with Covestro to transfer all of our shares to Covestro Japan. In 2021 Covestro has acquired DSM's Resins & Functional Materials business. Covestro aims to further strengthen the field of optical fiber coatings and so we believe this will contribute to the enhancement of the corporate value of both companies.