Shinagawa Refractories (TYO:5351) agreed to the compulsory acquisition of land housing its Kwinana plant in Western Australia and will relocate the facility, following a request from state authorities planning a new container port, according to a Thursday filing on the Tokyo Stock Exchange.

The group said its local unit, Shinagawa Refractories Australasia, will move the plant to Orion Industrial Park near the current site, while transferring ownership of the existing land to Main Roads Western Australia under the state's Land Administration Act.

Shinagawa said the Australian unit will be able to continue operating the current plant for about two and a half years after the land transfer through a lease arrangement, with operations expected to end around September 2028 when the new plant starts running.

Compensation for the land acquisition is still under negotiation with the Western Australia government and is expected to be finalized by mid-April, the company said, adding that the impact on results for the year ending March 31, 2026, is under review.