Sumitomo Chemical has announced that the Group will transfer all of the shares that it holds in the Group’s two flat panel display (FPD) process chemical companies in China to Zhenjiang Runjing High Purity Chemical Technology Co., Ltd. (Runjing Tech). The Group and Runjing Tech have concluded a share transfer agreement. The transfer is scheduled to be completed on May 31, 2024.

Sumitomo Chemical has operated FPD process chemical business in China since 2009. This business maintains a solid performance, supported by its good relationships with local customers, but in recent years it has faced major changes in the business environment, such as increases in raw material costs.

After exploring how to restructure the business, Sumitomo Chemical has decided to transfer it to Runjing Tech, concluding that its best owner is Runjing Tech, a group company of Shandong Haike Holding Co., Ltd. (Haike Holding), a Chinese petrochemical conglomerate that excels in raw material procurement and customer support. Sumitomo Chemical believes that Runjing Tech’s ownership will be the best way forward to enhance the competitiveness of the business.

The companies are Sumika Electronic Materials (Hefei) and Sumika Electronic Materials (Chongqing). These two companies are wholly owned by Sumitomo Chemical, Dongwoo Fine-Chem Co., Ltd., a Korean subsidiary, and Sumitomo Chemical (China) Co., Ltd., a Chinese subsidiary.

 The Sumitomo Chemical Group is currently accelerating the restructuring of its businesses as part of its short-term intensive performance improvement measures, based on growth, profitability and the best-owner perspective.

 The Group will press ahead with these efforts to secure a stronger footing to achieve a V-shaped recovery in fiscal 2024, and lay the groundwork for fundamental structural reforms in the future.