This is to notify that we have been informed on June 29, 2021 that an administrative procedure has been commenced by the Comptroller General (“CGU”) of the Federative Republic of Brazil involving Toyo Engineering Corporation (“TOYO”) and our Brazilian subsidiary Projeto de Plantas Industriais Ltda (“PPI”), with respect to certain improper affairs in relation to a project in which PPI had participated together with two other Brazilian contractors to construct utility facilities for Comperj Petrochemical Complex in Rio de Janeiro under a contract awarded by the Brazilian state-owned energy company Petroleo Brasileiro S.A. (“Petrobras”) in 2011.
The subject matter of the administrative procedure is same as the lawsuit filed in 2018 by the Attorney General of the Federative Republic of Brazil against 20 codefendants including PPI, as we announced in 2018. The position of PPI (as well as TOYO) remains unchanged that PPI was not involved in said affairs, and we will properly address the issues during the administrative procedure.
| Name | Projeto de Plantas Industriais Ltda |
| Address | Praia de Botafogo, nº 228, sala 801 – Botafogo - Rio de Janeiro - Rio de Janeiro - 22250906 |
| Area of business | Engineering, procurement and construction of plants |
| Capital | 322,001 BRL |