Sumitomo Chemical Co. Ltd has announced its decision to close down its production facilities for dyestuff at Osaka, Japan and exit the dyestuff business by the end of March 2023.

 

Sumitomo Chemical acquired Japan Dyestuff Manufacturing Company in 1944, and has since engaged in development and manufacture of dyestuff products for clothes. As the environment surrounding the dyestuff business has increasingly become challenging, the Company has been striving for the structural reform of the business, such as enhancing the value added to its products, optimizing the product line, and reducing costs across the board. Meanwhile, as production facilities are ageing, maintenance and repair costs are increasing year after year. Under these circumstances, the Company has concluded that, despite all those reform measures, it will be unable to steadily generate profits from the business over the medium to long term. Management resources cultivated through the dyestuff business support the foundations of Sumitomo Chemical’s specialty chemicals businesses, such as IT-related products, health and crop protection chemicals, and pharmaceuticals. In particular, organic synthesis technology derived from the dyestuff business has been applied to product development in these areas.

 

Going forward, Sumitomo Chemical will continue to direct its resources to fields in which the company has competitive advantages, and strive to achieve sustained growth by creating new value.