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Sumitomo Chemical Announces Sale of its Shares in Two Overseas Aluminum Smelting Companies
May. 31, 2024
Sumitomo Chemical has decided to sell all of its shares in New Zealand Aluminium Smelters Limited (NZAS) (representing 20.64% of NZAS’s outstanding shares) and Boyne Smelters Limited (BSL) (representing 2.46% of BSL’s outstanding shares) to Rio Tinto, a British-Australian company and global leader in the mining and metals industry. Sumitomo Chemical and Rio Tinto are partners of both NZAS and BSL. The sale of the shares is scheduled to be completed after the necessary procedures have concluded, including approval by relevant authorities.
Sumitomo Chemical held shares in NZAS and BSL for the purpose of importing primary aluminum from these companies for resale. These businesses, however, are significantly affected by changes in international aluminum market conditions, and Sumitomo Chemical now considers the volatility of their profitability too high for its Group. Accordingly, the Company has decided to sell its shares in NZAS and BSL.
The Sumitomo Chemical Group is accelerating its short-term intensive performance improvement measures aimed at ensuring a V-shaped recovery in fiscal 2024 and strengthening its financial position to lay the groundwork for future fundamental structural reforms. The sale of the shares comes as part of the Group’s business portfolio transformation.
Reference:
Overview of NZAS
| Company name |
New Zealand Aluminium Smelters Limited |
|---|---|
| Principal place of business | Tiwai Road Invercargill, New Zealand |
| Founded |
1969 |
| Shareholder composition | Rio Tinto (79.36%) and Sumitomo Chemical (20.64%) (As of April 2024) |
Overview of BSL
| Company name |
Boyne Smelters Limited |
|---|---|
| Principal place of business | Handley Drive, Boyne Island QLD 4680, Australia |
| Founded |
1978 |
| Shareholder composition | Rio Tinto (59.39%), YKK Aluminium (9.50%), UACJ Australia (9.29%), Southern Cross Aluminium (7.71%), Ryowa Development II (6.46%), Ryowa Development (5.19%) and Sumitomo Chemical (2.46%) (As of April 2024) |
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Sumitomo Chemical Co., Ltd.
Corporate Communications Dept.
https://www.sumitomo-chem.co.jp/english/contact/public/