Partial Integration of the Steel Service Center Business in Japan

Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; Representative Director, President and Chief Executive Officer: Kuniharu Nakamura) and Marubeni-Itochu Steel Inc. (Head Office: Chuo-ku, Tokyo; President and CEO, Member of the Board: Tomohito Kaneda; hereinafter, “MISI”) have concluded an agreement to establish a new company by integrating the steel service center business conducted in the Chugoku region by Summit Steel Co., Ltd. (Head Office: Osaka City, Osaka; President: Hiroshi Wakashima), a subsidiary of Sumitomo Corporation, into Hiroshima Steel Center Co., Ltd. (Head Office: Higashihiroshima City, Hiroshima; President: Toyozo Hasegawa), a subsidiary of MISI, on April 1, 2018.

The environment surrounding the steel service center business in Japan is causing the pace of restructuring in the industry to accelerate, due specifically to factors such as uncertainties about the future of the Japanese economy and a decrease in the country’s population. In response, the industry is required to take proactive measures, including expanding the service functions and increasing business efficiency. Under these circumstances, Sumitomo Corporation and MISI have decided to integrate the steel service center business conducted by the aforementioned two subsidiaries in the Chugoku region for the enhancement of the business foundation, regarding this as the best option for all stakeholders, including business partners and employees.

Sumitomo Corporation and MISI have been building partnerships in multiple ventures in Japan, including the steel building materials business. The two companies will make the most effective use of their respective managerial resources to maximize the corporate value of the new company to be established through the integration.

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■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 “Contributing to the Development of Local Communities and Industries” and “Establishing a Foundation for Comfortable and Enriching Lifestyles”.