Establishment of Independent Corporation in Vietnam

Sumitex International Company Limited (Head Office: Chiyoda-ku, Tokyo; President and CEO: Shinichi Tanaka; hereinafter, "STI"), a wholly-owned subsidiary of Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Susumu Kato), has established Sumitex Vietnam Limited Liability Company (Head Office: Ho Chi Minh City, Vietnam; President and CEO: Noriyoshi Sugihara; hereinafter, "SVL") as a wholly-owned textile trading subsidiary.

<About SVL>
Most apparel products distributed in Japan are manufactured in and procured from China. Meanwhile, China's recent rapid economic growth is bringing changes to its production environment, gradually rendering it difficult for foreign companies to concentrate their production and procurement functions exclusively in China. In response, companies around the world are beginning to expand their network of manufacturing bases to include countries other than China. Under this "China plus one" strategy, Vietnam is deemed to be one of the most enticing alternative countries to establish a production site. 

In its preemptive efforts to address such changes in the global business environment, STI has been manufacturing high-value-added apparel products including highly stylish and high/medium-quality items in Vietnam since 1990, building up competitive expertise. By establishing SVL and organizing a local technical support team comprised of mainly Japanese technical instructors, STI aims to enhance quality control at its existing supplier factories in Vietnam, while promoting technological alliances with new supplier factories in neighboring countries to expand its manufacturing scheme for high-value-added products, thereby pushing its competitive advantage in Vietnam to an even higher level. At the same time, STI will make full use of its expanded manufacturing scheme to increase sales and profitability in the Japanese, European, and U.S. markets, and furthermore, aim at advancing into the growing Chinese and Asian markets in the future.

<About STI>
STI is a textile trading company, serving mainly as an original equipment manufacturing (OEM) supplier to apparel wholesalers and retailers. Leveraging its advanced production and quality control capacity, including its expertise in material procurement and designing, STI is expanding its business further afield, from domestic transactions to transactions with Western medium- and high-quality brands.

■Reference 1: Outline of SVL

■Reference 2: Outline of STI

■Reference 3: STI's bases for OEM business