July 31st, 2017

Daicel Corporation

We report the situations that have been determined as of July 31st, concerning the fire accident at our peracetic acid plant of the Ohtake Plant on July 18, 2017.

We apologize again that this accident posed too much inconvenience.

1. Operational status of the Plant at the occurrence of the accident

   The relevant plant has two lines of A and B. A line was out of service, while B line was operating continuously.

2. Occurrence of the fire accident

   Since peracetic acid was excessively concentrated at the lower part of a distilling column rebolier in the B line, sudden generation of cracked gas broke the piping, from which ethyl acetate was leaked and ignited by a spark of static electricity (estimated factor) or other factor, and finally caused a fire.

   An interlock for protection of the equipment operated concurrently at the occurrence of such unusual event. Therefore, those other than the equipment causing the accident at the relevant plant shut down successfully, which has been maintained.

   The lower rebolier was partially broken, while other pieces of major equipment were not affected by the fire accident.

   This accident did not cause human damage, neighboring impacts, and the leakage of hazardous materials to the sea.

3. Estimated cause

   The supply pump to the reaction process shut down due to some kind of anomaly, which stopped the supply to the distilling column. For this reason, peracetic acid was excessively concentrated at the lower part of the column. The concentration of the acid exceeded the critical level and it led to a sudden decomposition of the acid. This finally resulted in the breakage of the relevant equipment.

4. Recovery Conditions

With the guidance of the related authorities, we are currently formulating a renewal and repair plan of corrupted equipment, aiming at the earliest restoring.

All plants in the second Organic Chemical area with the relevant plant were shut down at the occurrence of the accident, but after confirming the safety of those pieces of

equipment except the equipment related to the manufacture of peracetic acid, we have already resumed the operation of all facilities.

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