Sumitomo Corporation Expands Construction Equipment Business with Acquisition of Construction Equipment Rental Company in US

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; President and Chief Executive Officer: Masayuki Hyodo) is pleased to announce its subsidiary, Sunstate Equipment Co., LLC (Head Office: Phoenix, Arizona CEO: Chris Watts) (Sunstate), has acquired 100% of the assets and operations of Trench Shore Rentals, Inc. (Head Office: Phoenix, Arizona) (TSR), a leading U.S. trench safety equipment rental company. 

As demand for new infrastructure projects continues to rise and safety standards at construction sites become more stringent, the trench (*1) rental market is anticipated to reach approximately 300 billion JPY by 2025. Operating in the southwestern United States, TSR has positioned itself as a prominent player in the construction equipment rental sector, with a focus on trench safety services across Arizona, California, and Texas. This acquisition holds significance not only due to the geographic alignment with Sunstate’s core markets in the region but also an expansion of Sunstate’s existing trench safety equipment rental business already operating in the states of Washington, Oregon, Texas, Oklahoma, Georgia, North Carolina, and Florida.  Sunstate expects to double its share of the trench safety rental revenues with this strategic move.

Sunstate has actively expanded its branch network and diversified its product offerings since 2017, following its acquisition by Sumitomo Corporation. Leveraging its established industry expertise, Sunstate aims to further strengthen its market position and grow the revenue through the acquisition of TSR and capitalize on TSR's specialized knowledge in trench rental.
Sumitomo Corporation is strategically positioned for growth, emphasizing regional expansion, product diversification, customer base expansion, and the expansion of job site solutions business. This robust growth strategy underscores our commitment to enhancing safety and productivity within the construction industry, while actively supporting global infrastructure development. 

(*1) Note: Trench safety equipment is utilized to secure earth and sand in trenches, ensuring the safety of workers engaged in construction projects related to water supply, sewerage, roads, electricity/gas, bridges, and plants.

■About Sunstate Equipment Co., LLC

■About Trench Shore Rentals 

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 Environment

To realize recycling-oriented society and mitigate climate change, we are working to establish frameworks for the efficient use of resources and stable supply of renewable energy. In doing so, we will achieve growth in harmony with the global environment.

Contributing to the Development of Local Communities and Industries

We steadily procure and provide goods and services to meet the needs of people in various countries and regions and contribute to developing industrial platforms. Through these means, we will create a virtuous cycle in which we can grow and develop together with local communities.

Establishing a Foundation for Comfortable and Enriching Lifestyles

We strive to realize more convenient and comfortable lifestyles by providing goods and services for daily use while also responding to needs for high-quality lifestyles in order to support the physical and mental health of people around the world.

Providing Diverse “Accessibility”

We provide diverse accessibility to open up the possibility of creating new value. To this end, we will improve mobility for safe and efficient flow of people and goods, and expand the network connecting information and finance.

Developing Human Resources and Promoting Diversity

In order to create new value and innovation by allowing our diverse personnel to fully exercise their abilities in a variety of fields, we will promote the development and empowerment of human resources, which represent our most important management resources.

Enhancing Governance

We will enhance our ability to draft and implement strategies for achieving sustainable growth and to provide appropriate supervision of these strategies, all while maintaining transparency. In this manner, we will improve management efficiency and maintain sound management.