Sumitomo eyes Mexico for agrochemical sales expansion

Date:02-16-2010

 
Mexico has been earmarks as a prime target market for Sumitomo Corp.’s agrochemicals. The company has set a goal of $15mn after five years in annual sales from the country, whose agrochemical demand had been growing at a pace of 12.4%/y over the last five years, elevating it to the No.15 spot in the world.
To enhance its sales performance and more fully cater to users’ needs, Sumitomo decided to set up a local unit dedicated to the marketing of agrochemical, which was previously handled by Sumitomo Corporation de Mexico. Summit Agro Mexico, the Mexico City-based new company, is 60% owned by Sumitomo Corp. and 40% by Sumitomo Corporation de Mexico; marketing of the group’s specialty agrochemical and their supply through local distributor was begun this year.
Soil fungicide, sold under commission from a US company, are the primary products. Herbicide, insecticide, other fungicides produced by Japanese companies, and Sumitomo’s proprietary formulations of the fungicide ingredient Saprol are marketed as well.
Mexico is the 21st country in which Sumitomo has established its own agrochemical sales company. It is considering additional sales units in Chile and the US to advance its strategy for an early climb into the ranks of the top 10 agrochemical companies in terms of global market share, from its current No.17/18 position.