Invested in Epsilon Composite, a French carbon fiber reinforced plastic company- Strategically expand revenue base downstream in the value chain -

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; President and CEO: Shingo Ueno) has signed a share purchase agreement and a shareholders agreement to invest in Epsilon Composite S.A.S. (Head Office: Bordeaux, France; CEO: Stéphane Lull; hereinafter “EC”). The investment was completed after obtaining the necessary approvals from the authorities.

About EC

EC is a carbon fiber reinforced plastic (hereafter CFRP) (* 1) manufacturer established in 1987. EC manufactures high-performance CFRP products at low cost using a unique method of manufacturing called pultrusion combined with proprietary technologies. With sales offices in Japan, Italy, Austria, Mexico, and other countries, EC operates worldwide in a wide range of industries, including construction, general industries such as camera tripods and robotic arms, sports and leisure, aviation, and the energy industry.

Background and Future Development of the Investment

Sumitomo Corporation has been supplying carbon fibers to EC and other European companies for more than 30 years since the early days of the carbon fiber market, and possesses knowledge and networks in the carbon fiber industry. Sumitomo Corporation's participation in this investment will strategically expand downstream business in the value chain, where particularly strong growth is expected, in order to further grow its carbon fiber-related revenue .

After the investment, Sumitomo Corporation plans to enhance EC's corporate value by making the most of its global network and the knowledge it has accumulated through its various businesses. As an example, Sumitomo Corporation will expand sales of core materials for overhead transmission lines manufactured by EC using CFRP. This product would contribute to the spread of renewable energy because it can safely and efficiently transmit higher voltage while utilizing existing facilities.

Through the above, Sumitomo Corporation will create synergies with renewable energy projects that it aims to initiate and expand EC's product lineup by combining EC's technological capabilities with Sumitomo Corporation's network and functions.
By promoting CFRP products more than ever, Sumitomo Corporation will contribute to reduce CO2 emissions toward a decarbonized society.

Company Overview

(*1) Abbreviation of “Carbon Fiber Reinforced Plastics,” a composite material in which resin is reinforced with carbon fiber. CFRP products are lightweight materials with high strength, high elasticity, and other material characteristics that contribute to the reduction of environmental burdens such as CO2 emissions by reducing the weight of components.

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