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Sumitomo Chemical to Sell Shares in Aluminum Smelting Business in Brazil and Withdraw from Aluminum Ingots Resale Business
Dec. 19, 2024
Sumitomo Chemical has decided to sell all of its shares in Nippon Amazon Aluminium Co., Ltd. (NAAC) to YKK AP Inc. Sumitomo Chemical holds a 2.97% stake in NAAC. With the sale of these shares, as well as the sale of its shares in two overseas aluminum smelting companies announced in May 2024*, Sumitomo Chemical will withdraw from the business of reselling imported aluminum ingots. As for its business of high-purity aluminum manufactured at its Ehime Works, located in Niihama City, Ehime, Japan, the Company has achieved world-class product quality by leveraging its advanced technological capabilities, and it will continue to seek to expand the business as part of the ICT & Mobility Solutions Sector, which also includes semiconductor materials and display materials businesses.
Sumitomo Chemical’s aluminum business got its start in 1934 when Sumitomo Aluminium Smelting Co., Ltd. was established. In 1976, it had the largest aluminum production capacity in Japan, and from the late 1960s to the 1970s, Sumitomo Chemical began to engage in aluminum smelting in such countries as Indonesia, New Zealand, Australia, and Brazil. After the oil crises in the 1970s, the Company withdrew from aluminum smelting in Japan and shifted to the business of importing and reselling aluminum ingots procured from aluminum smelting entities in the countries mentioned above. This has provided a stable supply of aluminum to many customers in Japan, including those in the fields of housing construction materials, electric wires, packaging materials, electronic components, and automotive parts.
Sumitomo Chemical has decided to sell its shares in overseas aluminum smelting companies, including NAAC, and to withdraw from the imported ingots resale business, considering the significant impact international aluminum market conditions have on this business, and its high volatility in terms of profitability. 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. This decision comes as part of the Group’s efforts to transform its business portfolio.
Sumitomo Chemical’s inorganic materials business, which includes aluminum and alumina materials, builds on the technological prowess, human talent, and other business resources developed in the Company’s aluminum smelting business. As for high-purity aluminum and high-purity alumina manufactured at its Ehime Works, Sumitomo Chemical will invest more resources to expand business, with a focus on high value-added fields, such as semiconductors and life sciences.
Reference
Overview of Nippon Amazon Aluminium Co., Ltd.
| Company name | Nippon Amazon Aluminium Co., Ltd. |
|---|---|
| Principal place of business | 4-7, Nihonbashi-Muromachi 3- chome, Chuo-ku, Tokyo, Japan |
| Year established | 1977 |
| Business overview | Investment and financing in aluminum and alumina joint ventures in Brazil, participation in management, and the purchase and distribution of aluminum ingots |
| Website | https://www.amazon-aluminium.jp/en/index.html |
Overview of YKK AP Inc.
| Company name | YKK AP Inc. |
|---|---|
| Principal place of business | 1, Kanda Izumi-cho, Chiyoda-ku, Tokyo, Japan |
| Year established | 1957 |
| Business overview | Design, manufacturing and construction of residential and building products |
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Sumitomo Chemical Co., Ltd.
Corporate Communications Dept.
https://www.sumitomo-chem.co.jp/english/contact/public/