Aug. 06, 2018
Sumitomo Corporation
Metal One Corporation
Agreement Concluded on the Integration of Domestic Tubular Products Business Operations between the Sumitomo Corporation Group and the Metal One Group
We are pleased to announce that Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) and Metal One Corporation (Head Office: Chiyoda-ku, Tokyo; President and Chief Executive Officer: Shuichi Iwata; hereinafter, “Metal One”) have agreed to integrate the domestic tubular products business operations conducted by the two companies and those under their control on an equal basis.
The business operations are slated to be integrated in January 2019, with the specific integration date, which is subject to the acquisition of the necessary permits from the related authorities in Japan and abroad, to be announced when it is determined.
1. | Purpose of the business integration |
The domestic tubular products market is undergoing change at an increasingly rapid pace. In these circumstances, the two companies have decided that the best option for their business partners, fellow workers, and all other stakeholders could be to consolidate their managerial resources to pursue sustainable growth while making use of the strengths of their respective groups. The new company to be established by the integration will work to leverage to maximum effect the managerial resources inherited from the two companies, further improve their functions and expertise, and demonstrate more capabilities to meet the requests of those related to the market. |
2. | Outline of the integration |
1) | Method |
The tubular products business to be split from the Sumitomo Corporation Group and the tubular products business conducted by SC Pipe Solutions Co., Ltd. will be integrated with the tubular products business to be split from the Metal One Group and the tubular products business conducted by Metal One Pipe & Tubular Products Inc. on an equal basis. In consideration of the related factors, including the permits and approvals to be obtained for the integration, Metal One Pipe & Tubular Products Inc. will be the surviving company. |
2) | Schedule |
(a) Conclusion of the integration agreement: August 6, 2018 (already concluded today) (b) Actual integration: January 2019 (Planned) |
(i) Outline of the new company to be established by the integration (Planned) | ||
Trade name | TBD | |
Representative | To be determined through discussions by the related companies Capital 500 million yen |
|
Capital | 500 million yen | |
Voting rights ratio | Sumitomo Corporation: 50% Metal One: 50% |
|
Number of employees | Around 890 | |
Sales size | Around 190 billion yen |
(ii) As for other matters to be determined, the details will be announced, as necessary, when they are decided. |
3. | Companies and business operations to be integratedThe Sumitomo Corporation Group: |
(1) | SC Pipe Solutions Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President and Chief Executive Officer: Yuji Katagiri; hereinafter, “SC Pipe Solutions”) |
For the following four companies, only the domestic tubular products business will be split from them for the integration. (Hereinafter, “Business to be split from the Sumitomo Corporation Group.”) |
|
(2) | Sumitomo Corporation |
(3) | Sumitomo Corporation Hokkaido Co., Ltd. (Head Office: Sapporo-shi, Hokkaido; President: Hiroshi Ishizuka; hereinafter, “Sumitomo Corporation Hokkaido”) |
(4) |
Sumitomo Corporation Tohoku Co., Ltd. (Head Office: Sendai-shi, Miyagi; President: Tsutomu Morikawa; hereinafter, “Sumitomo Corporation Tohoku”) |
(5) | Sumitomo Corporation Kyushu Co., Ltd. (Head Office: Fukuoka-shi, Fukuoka; President: Tsuneaki Maeda; hereinafter, “Sumitomo Corporation Kyushu”) |
The Metal One Group: | |
(1) | Metal One Pipe & Tubular Products Inc. (Head Office: Minato-ku, Tokyo; President and Chief Executive Officer: Norio Naito; hereinafter, “Metal One Pipe & Tubular Products”) |
For the following three companies, only the domestic tubular products business will be split from them for the integration. (Hereinafter, “Business to be split from the Metal One Group.”) |
|
(2) | Metal One |
(3) | Metal One Nishinihon Corporation (Head Office: Hiroshima-shi, Hiroshima; President and Chief Executive Officer: Takehiro Honda; hereinafter, “Metal One Nishinihon”) |
(4) | Metal One RYOWA Corporation (Head Office: Kurashiki-shi, Okayama; President. Director: Reki Nagao; hereinafter, “Metal One RYOWA”) |
(Reference materials): Outline of the two companies and the related companies under their control
Trade name | : | Sumitomo Corporation |
Head office | : | Harumi Island Triton Square Office Tower Y, 1-8-11 Harumi, Chuo-ku, Tokyo |
Representative | : | Masayuki Hyodo, Representative Director, President and Chief Executive Officer |
Business description | : | Domestic sales of products and services in a range of industrial fields, export and import operations, intermediary trade, business investments in and outside Japan, and others |
Capital | : | 219.3 billion yen |
Shareholders | : | The Master Trust Bank of Japan, Ltd. (trust account), Japan Trustee Services Bank, Ltd. (trust account),
Liberty Programming Japan, LLC, JP Morgan Chase Bank, Sumitomo Life Insurance Company, and others |
Establishment | : | December 24, 1919 |
Fiscal year-end | : | March 31 |
Number of employees | : | 5,261 (As of March 31, 2018) |
Sales bases | : | 22 in Japan and 108 outside the country (As of June 1, 2018) |
Trade name | : | SC Pipe Solutions Co., Ltd. |
Head office | : | Sumitomo Corporation Takebashi Building, 1-2-2 Hitotsubashi, Chiyoda-ku, Tokyo |
Representative | : | Yuji Katagiri, President and Chief Executive Officer |
Business description | : | Processing and sale of steel and aluminum tubes and associated products |
Capital | : | 843 million yen |
Shareholder | : | Sumitomo Corporation (100%) |
Establishment | : | November 27, 1981 |
Fiscal year-end | : | March 31 |
Number of employees | : | 456 (As of July 1, 2016) |
Sales bases | : | 19 |
Trade name | : | Sumitomo Corporation Hokkaido Co., Ltd. |
Head office | : | Sumitomo Corporation/Fukamiya Odori Building, 8-2 Odori-nishi, Chuo-ku, Sapporo-shi, Hokkaido |
Representative | : | Hiroshi Ishizuka, President |
Business description | : | Metal, construction, materials, information, electricity, machinery, facilities, communications, energy, agriculture and fisheries, chemicals, and other goods |
Capital | : | 490 million yen |
Shareholder | : | Sumitomo Corporation (100%) |
Establishment | : | April 1, 2000 |
Fiscal year-end | : | March 31 |
Number of employees | : | 35 |
Sales bases | : | Two |
Trade name | : | Sumitomo Corporation Tohoku Co., Ltd. |
Head office | : | Sendai Capital Tower 15F, 4-10-3 Chuo, Aoba-ku, Sendai-shi, Miyagi |
Representative | : | Tsutomu Morikawa, President |
Business description | : | Metal, mechatronics, energy, agriculture and fisheries, chemicals, construction materials, and others |
Capital | : | 490 million yen |
Shareholder | : | Sumitomo Corporation (100%) |
Establishment | : | April 1, 2003 |
Fiscal year-end | : | March 31 |
Number of employees | : | 49 |
Sales bases | : | Two |
Trade name | : | Sumitomo Corporation Kyushu Co., Ltd. |
Head office | : | Hakata Kangen Building, 3-30-23 Hakataekimae, Hakata-ku, Fukuoka-shi, Fukuoka |
Representative | : | Tsuneaki Maeda, President |
Business description | : | Metal, mechatronics, information, agriculture and fisheries, chemicals, construction materials, textiles, and others |
Capital | : | 2 billion yen |
Shareholder | : | Sumitomo Corporation (100%) |
Establishment | : | October 1, 2005 |
Fiscal year-end | : | March 31 |
Number of employees | : | 110 |
Sales bases | : | Five |
Trade name | : | Metal One Corporation |
Head office | : | JP Tower, 2-7-2, Marunouchi, Chiyoda-ku, Tokyo |
Representative | : | Shuichi Iwata, President and Chief Executive Officer |
Business description | : | Handling of various tubular products |
Capital | : | 100 billion yen |
Shareholder | : | Mitsubishi Corporation (60%) and Sojitz Corporation (40%) |
Establishment | : | January 6, 2003 |
Fiscal year-end | : | March 31 |
Number of employees | : | 1,134 (As of April 1, 2018) |
Sales bases | : | 25 in Japan and 35 outside the country |
Trade name | : | Metal One Pipe & Tubular Products Inc. |
Head office | : | Shin-Tamachi Building 5F, 5-34-6 Shiba, Minato-ku, Tokyo |
Representative | : | Norio Naito, President and Chief Executive Officer |
Business description | : | Sale of tubular products, valves, joints, machines, and others Cutting of steel pipes and installation of tubular products and machines |
Capital | : | 500 million yen |
Shareholder | : | Metal One Corporation (100%) |
Establishment | : | April 1, 2011 |
Fiscal year-end | : | March 31 |
Number of employees | : | 382 |
Sales bases | : | 25 |
Trade name |
: | Metal One Nishinihon Corporation |
Head office | : | Hiroshima Park Building 8F, 3-7-5 Otemachi, Naka-ku, Hiroshima-shi, Hiroshima |
Representative | : | Takehiro Honda, President and Chief Executive Officer |
Business description | : | Handling of various tubular products |
Capital | : | 300 million yen |
Shareholder | : | Metal One Corporation (100%) |
Establishment | : | July 1, 2018 |
Fiscal year-end | : | March 31 |
Number of employees | : | 84 |
Sales bases | : | 12 |
Trade name | : | Metal One RYOWA Corporation |
Head office | : | 6-12-1 Minamise, Kurashiki-shi, Okayama |
Representative | : | Reki Nagao, President. Director |
Business description | : | Cutting and sale of steel plates and tubes |
Capital | : | 400 million yen |
Shareholder | : | Metal One Corporation (100%) |
Establishment | : | April 1, 1969 |
Fiscal year-end | : | March 31 |
Number of employees | : | 103 (As of April 2018) |
Sales bases | : | 19 |
■ Sumitomo Corporation’ s Material Issues The Sumitomo Corporation Group has positioned “Six Material Issues to Achieve Sustainable Growth with Society” as important factors in developing business strategies and in the decision-making processes for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This latest project will contribute especially to “Contributing to the Development of Local Communities and Industries” and “Providing Diverse ‘Accessibility’”.
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