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| HOME > NEWS RELEASE > 2007 > Cooperative Venture in System Construction Business |
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| NEWS RELEASE |
| May 10, 2007 |
| Cooperative Venture in System Construction Business |
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(PDF 23KB) |
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Sumitomo Metal Industries, Ltd. (hereinafter, "Sumitomo Metals"; Headquarters: Osaka; President: Hiroshi Tomono) and Sumikin Bussan Corporation (hereinafter, "Sumikin Bussan"; Headquarters: Osaka; President: Gashun Amaya) have begun specific deliberations toward a joint undertaking in the system construction business, which is scheduled to commence on October 1, 2007. The effort aims to further expand the business by combining Sumitomo Metals' brand presence and technical capabilities with the Sumikin Bussan Construction Department's strength in construction contracting, skills in marketing to general contractors and other clients, and wealth of property information.
The joint venture entails transferring Sumitomo Metals' system construction business to the company's subsidiary, SMI Engineering Center Co., Ltd. (Headquarters: Tokyo; President: Shinichiro Kato), which will undertake design and other tasks relating the venture. The subsidiary's name will also be changed to Sumikin System Buildings Corp. (hereinafter, the "new company"). Sumitomo Metals and Sumikin Bussan will share the burden of the new company's capital increase, consolidating design, construction and marketing departments to form a streamlined business structure. Sumitomo Metals and Sumikin Bussan will each hold 50% of the new company's equity after the capital increase.
Sumitomo Metals' system construction enables substantially shorter work periods than conventional methods and offers high-quality products at low prices. These advantages have been recognized by owners, general contractors and other clients, leading to a steady increase in orders.
The new company will capitalize on the structural enhancements brought about by the cooperative effort and the Sumikin Bussan Construction Department's abundance of company information to further hone the system construction business's competitive edge. At the same time, the new company will strive for continued expansion by leveraging the brand strength that Sumitomo Metals has accumulated over many years and its network of regional offices, branches and sales offices covering every major city in Japan.
| Overview of New Company |
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Company Name: |
Sumikin System Buildings Corp. |
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Corporate Headquarters: |
8-11 Harumi 1-chome, Chuo-ku, Tokyo |
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Paid-in Capital: |
¥200 million |
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Representative: |
Shinichiro Kato, President (currently head of the System Construction Department at Sumitomo Metal Industries, Ltd.) |
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Business Content: |
Design and implementation of system construction |
| 6. |
Employees: |
60 (projected) |
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Net Sales: |
Approximately ¥7 billion |
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