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Sumitomo Chemical to Transfer Shares in Sumika Color
Mar. 1, 2024
Sumitomo Chemical Co., Ltd. has decided to transfer its shares in Sumika Color Co., Ltd. (“Sumika Color”) to Nippon Pigment Company Limited (“Nippon Pigment”) and concluded a share transfer agreement with Nippon Pigment. The transfer is scheduled to take place on April 30, 2024.
1. Objective
Sumika Color has engaged in the organic pigment, masterbatch, and resin compound businesses for many years. These businesses are facing a challenging business environment, including maturing markets in Japan and sharply rising raw material and fuel prices. After exploring how to restructure the businesses, Sumitomo Chemical has decided to transfer its share in Sumika Color, concluding that the best owner for Sumika Color is Nippon Pigment, which has strengths in high-dispersion technology, colorant and additive formulation technology, as well as production technology, and that Nippon Pigment’s ownership of the business will be the best way forward to enhance Sumika Color’s efficiency and maintain and strengthen its competitiveness.
2. Overview of the Company to be Transferred
| Company name |
Sumika Color Co., Ltd. |
|---|---|
| Location | 6-17, Koraibashi, 4-chome, Chuo-ku, Osaka, Japan |
| Founded |
1950 |
| Representative | Toshiro Kojima, President |
| Capital | 413,000,000 yen (Percentage of shares held by Sumitomo Chemical: 87.34%) |
| Businesses |
Manufacturing and sale of color masterbatches for synthetic resins, resin compounds, and other relevant products |
3. Overview of the Transferee
| Company name |
Nippon Pigment Company Limited |
|---|---|
| Location | 3-20, Kandanishikicho, Chiyoda-ku, Tokyo, Japan |
| Founded |
1925 |
| Representative | Tatsumi Kato, President |
| Capital | 1,481,150,000 yen |
| Businesses |
Manufacturing and sale of resin compounds, colorants for resins, high-dispersion liquid dispersants, and other relevant products |
The Sumitomo Chemical Group is currently accelerating the restructuring of its businesses as part of its short-term intensive performance improvement measures, based on profitability and the best-owner perspective. The Group will press ahead with these efforts to secure a stronger footing to achieve a V-shaped recovery in fiscal 2024, and lay the groundwork for fundamental structural reforms in the future.
Contact
Sumitomo Chemical Co., Ltd.
Corporate Communications Dept.
https://www.sumitomo-chem.co.jp/english/contact/public/