Sumitomo Chemical to reorganize its group companies in the US

 

As of March 31, 2017, Sumitomo Chemical will transfer its entire shares, as a contribution in kind, in two of its wholly owned subsidiaries, Valent U.S.A. Corp. (VUSA) and Sumika Electronic Materials, Inc. (SEMI), to its US regional headquarters, Sumitomo Chemical America, Inc. (SCAI), making them wholly owned subsidiaries of SCAI. Furthermore, as of April 1, 2017, four of the Group companies, i.e. VUSA, SEMI, Sumika Polymers North America (another wholly owned subsidiary of SCAI), and Valent BioSciences Corp. (a wholly owned subsidiary of VUSA) will be re-organized as limited liability companies (LLCs).

 

With sales outside Japan accounting for over 60% of its total consolidated sales, Sumitomo Chemical is advancing initiatives under a basic policy of its current Three-Year Business Plan to “promote globally integrated management.” The initiatives are being implemented in each of the Company's major business geographical regions, including the earlier announced merger of its three Singapore-based subsidiaries, effective April 1, 2017. The re-organization in the U.S. is part of such initiatives and is intended to promote the effective use of the Group's management resources in the U.S. through an enhanced approach to shared services that can be used by its Group companies in the U.S. for their back-office operations as well as to ensure strict legal and ethical compliance and further strengthen internal controls as Sumitomo Chemical Group companies continue to expand business activities in the US.