Sumitomo Chemical : to Reorganize Its Group Companies in the US

January 31, 2017

Sumitomo Chemical to Reorganize Its Group Companies in the US

Sumitomo Chemical has decided to reorganize some of its Group companies in the

U.S. to improve the efficiency of their business operations.

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.

*SEMI will be renamed "Sumitomo Chemical Advanced Technologies LLC" as of April 1, 2017.

＜Profiles of the Company's US subsidiaries＞

Company name : Sumitomo Chemical America, Inc. Establishment : May, 1976

Capital : USD 253.794 million

President : Scott Mitchell

Businesses : Sales and marketing of chemical products, gathering of market and technical information and related surveys, and Regional headquarters functions for the Americas region

Ownership : Sumitomo Chemical - 100%

Company name : Valent U.S.A. Corp. Establishment : April, 1988

Capital : USD 242.574 million

President : Andrew Lee

Businesses : Development and sales of plant protection and enhancement products in the North America

Ownership : Sumitomo Chemical - 100%

Company name : Sumika Electronic Materials, Inc. Establishment : January, 2003

Capital : USD 38.696 million

President : Kevin M. Beck

Businesses : Manufacturing of MOEPI wafers, rubber chemicals, composite materials (polyether sulfone grinding), import and sales of high purity inorganic materials, semiconductor manufacturing chemicals, and other specialty products

Ownership : Sumitomo Chemical - 100%

Company name : Sumika Polymers North America Inc. Establishment : November, 2011

Capital : USD 16.773 million

President : Brian Weider

Businesses : Sales of polypropylene compounds Ownership : Sumitomo Chemical America- 100%

Company name : Valent BioSciences Corp. Establishment : January, 2000

Capital : USD 129.344 million

President : Andrew Lee

Businesses : Development, manufacturing and sales of plant protection and enhancement products

Ownership : Valent U.S.A. - 100%

http://www.sumitomo-chem.co.jp/english/

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