JFE Engineering to Acquire 66.6% Stake in Sumitomo Chemical Subsidiary
Aiming for Sustainable Growth in the Chemical Plant Industry

Feb. 3, 2025

JFE Engineering Corporation
Sumitomo Chemical Co., Ltd.

JFE Engineering Corporation (President and CEO: Kazuyoshi Fukuda, Headquarters: Chiyoda-ku, Tokyo, “JFE Engineering”) and Sumitomo Chemical Co., Ltd. (Representative Director and President: Keiichi Iwata, Headquarters: Chuo-ku, Tokyo, “Sumitomo Chemical”) today announced that they have reached an agreement for JFE Engineering to acquire 66.6% of the shares in Sumitomo Chemical Engineering Co., Ltd. (“Sumitomo Chemical Engineering”), a wholly-owned subsidiary of Sumitomo Chemical. The acquisition is scheduled to be completed by March 31, 2025.

As a comprehensive engineering company within the JFE Group, JFE Engineering is widely engaged in engineering businesses that support people's lives and industries across various fields such as energy, environment, and bridges & steel structures, and it has a solid business foundation both domestically and internationally. The chemical plant engineering sector, which is projected to see continued market growth, has been designated as a core focus area for EPC^*1 by JFE Engineering. Through this share acquisition, JFE Engineering aims to expand both its customer base and service areas.

Sumitomo Chemical Engineering, a wholly-owned subsidiary of Sumitomo Chemical, is a chemical plant engineering company with extensive experience in design and construction of plants both domestically and internationally across a broad range of fields, including petrochemicals, fine chemicals^*2, and the semiconductor manufacturing.
Significant changes are anticipated in both domestic and international business environments as part of global efforts toward realizing a carbon-neutral society. In these circumstances, Sumitomo Chemical has determined to proceed with this share transfer since the deal would contribute to the sustainable growth and enhancement of corporate value of Sumitomo Chemical Engineering through leveraging the combined management resources and business expertise of Sumitomo Chemical and JFE Engineering to develop higher value-added businesses.
Sumitomo Chemical Engineering intends to change its corporate name following the share transfer. However, it will maintain its strong relationship with the Sumitomo Chemical Group while maximizing synergies with the JFE Group.

JFE Engineering and Sumitomo Chemical will continue their collaborative efforts in the construction of advanced chemical plants and the development of innovative technologies, thereby contributing to the realization of a carbon-neutral and sustainable society.

*1 Engineering, Procurement, and Construction
*2 High-quality materials used in pharmaceuticals, pesticides, fragrances, and functional resins

Overview of the Company to be transferred

Company Name	Sumitomo Chemical Engineering Co., Ltd.
Location	1-7-1 Nakase, Mihama-ku, Chiba-shi, Chiba
Established	September 1964
Capital	1 billion yen (Ownership: Sumitomo Chemical 100%)
Sales	27.1 billion yen (for fiscal year ended March 31, 2024)
Number of Offices	three in Japan (Chiba, Osaka, Ehime), two overseas (Singapore, Malaysia)
Business	Planning, design, procurement, construction, commissioning, and maintenance related to the construction of basic chemicals, functional chemical plants, and chemical supply systems for semiconductor manufacturing
Corporate Website	https://www.scec.co.jp/front-en/

Contact

Sumitomo Chemical Co., Ltd.
Corporate Communications Dept.
https://www.sumitomo-chem.co.jp/english/contact/public/