May 24, 2023
Sumitomo Corporation

Business Restructuring of TBC Corporation

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; President and CEO: Masayuki Hyodo), jointly operates TBC Corporation, (hereinafter “TBC”) a U.S. based tire distribution company, with Compagnie Générale des Établissements Michelin (Head Office: Clermont-Ferrand, France; hereinafter "Michelin"). TBC has reached an agreement to divest its company-owned retail portfolio to Mavis Tire Express Service Corp. (Head Office: New York, United States), a tire retailer in the United States. In connection with the transaction, TBC will transfer 595 retail locations to Mavis and will also provide wholesale and tire distribution for Mavis. 

TBC distributes tires and provides automotive repair and maintenance services in the U.S., Mexico, and Canada through its wholesale, company-owned retail, and franchise businesses. Among its businesses, TBC identifies wholesale business, boasting an industry-leading warehouse network and scale, and franchise business with a national store footprint, as core businesses. By divesting retail portfolio and focusing on wholesale business operation, TBC will further improve its profitability by concentrating management resources to core businesses and streamlining its organization. Investment will be made toward supply chain optimization, digital innovation, and human capital, and new business pillars will be developed, such as advanced tire logistics services (Supply Chain as a Service) which leverage its robust network. 

Sumitomo Corporation will continue, through its partnership with Michelin, to create the foundation for comfortable and exciting lifestyles for residents and contribute to the development of the mobility society and other industries in the North American region.

Sumitomo Corporation’s Material Issues

Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to the following material Issues.

Achieving Harmony with the Global EnvironmentAchieving Harmony with the Global Environment
Contributing to the Development of Local Communities and IndustriesContributing to the Development of Local Communities and Industries
Establishing a Foundation for Comfortable and Enriching LifestylesEstablishing a Foundation for Comfortable and Enriching Lifestyles
Providing Diverse “Accessibility”Providing Diverse “Accessibility”

Developing Human Resources and Promoting DiversityDeveloping Human Resources and Promoting Diversity
Enhancing GovernanceEnhancing Governance

Corporate Communications Department, Sumitomo Corporation
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