Sumitomo Corporation Of America and Sumitomo Corporation Group Companies Acquire Voest Alpine Intertrading USA

Chemical Trading company renamed Summit Petrochemicals Trading Inc.; SC now has worldwide reach in Chemicals Trading Market

In an effort to create a global presence in the chemicals trading market, SCOA along with SC, SC Singapore and SC Germany acquired Voest Alpine Intertrading AG in Linz, Austria, a subsidiary of Steel Mill Voest Alpine Group. SC Group has renamed the company Summit Petrochemical Trading Inc. (SPTI).

Summit Petrochemicals will trade petrochemical products such as aromatic and olefins. Aromatics include Benzene, Toluene, Xylene and Styrene. Olefins include Ethylene and Propylene. The ingredients are used by chemical makers to help manufacture products like plastic and synthetic fiber.

After this acquisition, SPTI's headquarters will remain in Houston with branch offices in Singapore and Linz, Austria. There will be four employees are each location.

SC Group: World Leader in Chemical Trading

The SC Group has taken a lead in the Asian Petrochemicals trading market in recent years and SC has been pursuing an investment opportunity to expand this business both in the U.S. and European markets.

"Summit Petrochemicals will fill in the missing pieces in terms of solidfying our global operations," said Rio Takahashi, Vice President, Summit Petrochemicals Trading, Inc.

The acquisition will also help to expand relationships with existing customers.

"We believe that one of SPTI's key strengths is its solid customer base built through a long term-trading history with major petrochemical producers such as Dow Chemical, Chevron Phillips Chemical and Shell Chemical," said Rio.

Summit Petrochemicals Trading Inc.: Experience and Information

SC has more than 40 years experience trading chemicals in Asia and 30 years in Europe and the U.S. Added to this experience will be the global trading apparatus of SPTI which will allow the company to acquire considerable critical industry information faster than competitors, according to Masataka Tani, SCOA representative, Summit Petrochemicals Trading Inc.

SPTI will utilize product and price information accumulated throuhg past trading activities in analyzing industry information and market trends.

"With these new assets and SPTI's strong customer base, information sources and analytical skills, we beleive that we will be able to tremendously enhance our worldwide petrochemical businesses by establishing real time information sharing and product distribution systrems all over the world," explained Tani.

The world wide reach of their information and distribution systems should allow SPTI to capture the arbitrage between the prices in the Asian, European and U.S. markets. SPTI will have access to pricing, supply and demand information from customers and suppliers sometimes even before prices are published for sale on the open market.

Most of SPTI's sourcing comes from within the industry and they also handle delivery.

"This is an important role for Summit," explained Tani. "We are not just a trader but also an end distributor to our customers."

SPTI does not own their delivery ships but charters transportation on a regular basis. Final delivery is usually to the shore tank of a chemicals plant where plastics and synthetic fibers are manufactured.

The Chemicals Trading Market: 300 Million Tons and Growing

The total size of the chemicals trading market is somewhere in the neighborhood 300 million tons per year, according to Tani

SPTI annually trades nearly a million tons of products and its turnover is approximately $700 million per year.

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