Sumitomo Corporation and Dexterity, Inc., a US-based Unicorn Company Specializing in AI Powered Robotics, Establish Joint Venture- Solving the “2024 Problem in Logistics" with AI-Equipped Loading Robots -

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno) and Dexterity, Inc., a US-based unicorn company, have established the Dexterity-SC Japan joint venture ("Dexterity-SC Japan") to market AI robotics software in Japan.

Sumitomo Corporation is Addressing Challenges Hitting the Logistics Industry

The logistics industry is facing labor shortages due to a rapid increase in packages shipped as the e-commerce market continues to grow. In addition, due to the "2024 Problem in Logistics," the estimated shortfall in freight transportation capacity (long-haul truck drivers) will reach 14% in FY2024, rising to 30% in FY2030 if countermeasures are not taken.(*)

With these issues coming to a head in the logistics industry, efforts are being made to reduce manpower and automate operations using robots. In the U.S., several startups have emerged since 2010 developing intelligent robots with human-like dexterity to automate repetitive tasks. Among these companies, Dexterity, founded in 2017, has established a successful track record, working mainly with leading U.S. logistics companies and achieving unicorn status in October 2021 when its valuation reached approximately $1.4 billion USD.

Sumitomo Corporation invested in Dexterity in 2020 through its corporate venture capital Presidio Ventures, and since 2022 has been the exclusive distributor in Japan for Dexterity's products and services. In December 2023, four companies, including SG Holdings, Co. Inc. and SAGAWA EXPRESS Co., Ltd. launched a joint project to test AI-equipped loading robots with the aim of commercializing the technology in the near future.

Dexterity's Strengths and Joint Venture Goals

Dexterity develops proprietary AI, computer vision and control technologies that combine with existing hardware. The technology is notable for enabling faster, more coordinated and more complex movements than conventional robots, and for automating processes that would otherwise be possible only with human labor. Dexterity's proprietary technologies include solutions that automate loading operations for trucks and containers.

To move beyond the scope of a distributor, the Dexterity-SC Japan joint venture company was established to provide support in Japan for high-volume sales of Dexterity software and enable speedy response to customization demands due to differences in customers and facilities in Japan and the U.S. Dexterity-SC Japan will leverage Dexterity's technological capabilities and sales track record in the U.S. alongside Sumitomo Corporation's domestic customer network and financing capabilities in cooperation with Sumitomo Mitsui Finance and Leasing Company, Limited, a Group company.

Company overview

About Sumitomo Corporation

Sumitomo Corporation (TYO: 8053) is an integrated trading company with a strong global network comprising 128 offices in 66 countries and regions. The Sumitomo Corporation Group consists of approximately 900 companies and 80,000 employees on a consolidated basis. The Group's business activities are spread across the following nine groups: Steel, Automotive, Transportation & Construction Systems, Diverse Urban Development, Media & Digital, Lifestyle Business, Mineral Resources, Chemicals Solutions and Energy Transformation Business. Sumitomo Corporation is committed to creating greater value for society under the corporate message of "Enriching lives and the world," based on Sumitomo’s business philosophy passed down for over 400 years.  Sumitomo Corporation