May 19, 2006
Pullout of Construction Projects for Sludge Treatment (Human Waste Treatment) Facilities
Kurita Water Industries Ltd. has made a decision to pull out of business activities involving new construction projects for government and municipal related market sludge treatment (human waste treatment) facilities. The details of the decision are shown below.
In August 2005, Kurita was investigated by the Japan Fair Trade Commission on suspicion of a violation of the anti-monopoly law concerning the construction of sludge treatment (human waste treatment) facilities, and was raided under the authority of the Japan Fair Trade Commission and Osaka District Public Prosecutors Office this April. Acknowledging this matter with utmost solemnity, Kurita has made the decision to withdraw from business activities involving new construction projects for sludge treatment (human waste treatment) facilities.
Kurita guarantees that it will fulfill its current obligations and construction will be completed for projects for which orders have already been received.
Kurita will cease all marketing activities on new construction projects for sludge treatment (human waste treatment) facilities as of today. However, Kurita's wholly owned subsidiary, Kuritaz Co., Ltd., will assure continued maintenance and operation management of the established facilities.
Note that the projected earnings performance of fiscal year ending March 2007 (issued on April 28, 2006) remains unchanged.