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Commencement of consideration of integration of domestic steel pipe businesses of Sumitomo Corporation Group and Metal One Group


WEBWIRE

Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President & CEO: Kuniharu Nakamura) and Metal One Corporation (Head Office: Chiyoda-ku, Tokyo; President & CEO: Shuichi Iwata) agreed on July 10 to begin considering the integration of the domestic steel pipe businesses of the two companies and their subsidiaries (hereinafter, “the Integration”), and the two companies will be undertaking consideration of this Integration in the spirit of equal partnership.
1.Aims in considering integration
The business environment surrounding the domestic steel pipe market is changing at an accelerating rate, and the importance of proactive action for this environment change is growing. Under these circumstances, Sumitomo Corporation and Metal One Corporation have now determined that, through the Integration, marshalling the management resources cultivated thus far by the two companies and utilizing their respective Group strengths to pursue sustained growth very likely offers the best option for all stakeholders including employees, and an agreement was reached to begin considering the Integration.
From now on, the two companies will move forward in considering the Integration so that they can fulfill a function in meeting the needs of all market participants by making the most effective use of the management resources covered by the Integration, and developing the function and expertise.
2.Overview of consideration
Seeking to ensure that the Integration will be acceptable to the relevant authorities both inside and outside Japan, the two companies will set up an Integration Exploratory Committee and discuss the optimal structures for the Integration, the name, head office location and other basic matters of the new integrated company, the integration ratio and other conditions of the Integration, and other matters pertinent to the Integration, in order to achieve the aims set forth in the preceding paragraph.

(Reference) Profiles of the two companies and their subordinate affiliates

Trade name: Sumitomo Corporation

Head office address: Harumi Island Triton Square Office Tower Y, Harumi 1-8-11, Chuo-ku, Tokyo

Name/title of representative: Kuniharu Nakamura, Representative Director, President and Chief Executive Officer

Description of business: Domestic sales, import/export and triangular trading of products/services in various industry sectors, business investment inside and outside Japan, etc.

Paid-in capital: 219.3 billion yen

Shareholders: Ltd. (trust account), Liberty Programming Japan, LLC, JP Morgan Chase Bank, Sumitomo Life Insurance Company, etc.

Date of establishment: December 24, 1919

End of fiscal year: March 31

Employees: 5,162 (as of March 31, 2017)

Business locations: 22 in Japan, 108 overseas (as of May 1, 2017)

 

Trade name: SC Pipe Solutions Co., Ltd.

Head office address: Sumitomo Corporation Takebashi Bldg., Hitotsubashi 1-2-2, Chiyoda-ku, Tokyo

Name/title of representative: Yuji Katagiri, President and Chief Executive Officer

Description of business: Machining/processing and sales of steel and aluminum tubes and accessories

Paid-in capital: 843 million yen

Shareholder: Sumitomo Corporation (100%)

Date of establishment: November 27, 1981

End of fiscal year: March 31

Employees: 456 (as of July 1, 2016)

Business locations:20

 

Trade name: Metal One Corporation

Name/title of representative: Shuichi Iwata, President & CEO, DirectorHead office address: JP Tower, Marunouchi 2-7-2, Chiyoda-ku, Tokyo

Description of business: Handling of various steel materials

Paid-in capital: 100 billion yen

Shareholders: Mitsubishi Corporation (60%), Sojitz Corporation (40%)

Date of establishment: January 6, 2003

End of fiscal year: March 31

Employees: 1,139 (as of April 1, 2017)

Business locations: 26 in Japan, 35 overseas

 

Trade name: Metal One Pipe & Tubular Products Inc.

Head office address: Shin-Tamachi Building, Shiba 5-34-6, Minato-ku, Tokyo

Name/title of representative: Norio Naito, President and CEO

Description of business: Sales of steel pipes, valves, fittings, and mechanical devices; cutting of steel pipes; and installation of pipes and machines

Paid-in capital: 500 million yen

Shareholder: Metal One Corporation (100%)

Date of establishment: April 1, 2011

End of fiscal year: March 31

Employees: 360

Business locations: 25


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