Sep. 28, 2010
Sumitomo Corporation to Participate in Aluminium Smelter in Malaysia
Sumitomo corporation(President and CEO：Susumu Kato；Head Office:Chuo-ku,Tokyo；hereinafter,"SC") will participate in an aluminium smelting project being developed in Sarawak, Malaysia (Capacity: 120,000 metric ton per year; Completion: the end of 2010; Total investment: approximately US$300 million) by acquiring a 20% share in Press Metal Sarawak Sdn. Bhd. (PMS).
SC has entered into a shareholders' agreement with the remaining 80% shareholder, Press Metal Berhad (PMB) (Listed in Malaysia; President and CEO: Dato' Poh Keong Koon; Head Office: Selangor Darul Ehsan, Malaysia). SC has options to increase its shareholding ratio to 25% and to participate in an expansion project being planned (Capacity: 240,000 metric ton per year; Completion: the end of 2012; Total investment: approximately US$ 600million).
PMB is the leading aluminium extrusion company in Southeast Asia and has also been carrying out vertical integration through promotion of the aluminium smelting projects. SC has investment in aluminium smelters in Australia, Brazil and Indonesia and trades primary aluminium metals widely in Japanese and other Asian markets. SC expects that the new partnership with PMB will enhance its long term growth strategy in aluminium business.