In an important strategic move, Nippon Steel Corporation and its wholly-owned subsidiary, Nippon Steel Engineering, are set to embark on a transformative journey through a company split agreement. Building upon the initial memorandum of understanding announced on March 29, 2023, regarding a simplified absorption-type company split, the two entities have now formally concluded the Company Split Agreement.This agreement revolves around the transfer of a portion of NSE's steel plant business to NSC, signifying a pivotal realignment of their business structure. The decision-making process at NSC was facilitated by its directors, under the mandate of the board of directors, while NSE's resolution to proceed with the agreement was reached through a resolution of its own board of directors.At the heart of this strategic initiative lies the paramount objective of bolstering NSE's facilities engineering system, while also optimizing the allocation of management resources within the Nippon Steel group. This, in turn, will foster the advancement of innovative process technologies and the seamless integration of cutting-edge equipment. This synergy is anticipated to provide indispensable support for NSC's pursuit of carbon neutrality and the production of high-value-added products.The Company Split Agreement is a significant step forward as it enables NSC to assume the operations conducted by NSE's Plant & Machinery Sector, with the exception of specific aspects related to the coke dry quenching (CDQ) system managed by the Plant & Machinery Business Department.With a legacy of over fifty years, NSE has carved a niche for itself in the steel plant business, offering technologically advanced, eco-conscious, and energy-efficient steel plant equipment across the globe.