Sumitomo Chemical has decided to transfer its shares in Sumika Color to Nippon Pigment Company Limited (Nippon Pigment) and concluded a share transfer agreement with Nippon Pigment. The transfer is scheduled to take place on April 30, 2024.

Sumika Color has engaged in the organic pigment, masterbatch, and resin compound businesses for many years. These businesses are facing a challenging business environment, including maturing markets in Japan and sharply rising raw material and fuel prices.

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