Sumitomo Corporation to transfer 70% of S.C. Cement to Sumitomo Osaka Cement

Transaction

Sumitomo Corporation has agreed to transfer a 70% equity stake in its wholly owned subsidiary S.C. Cement Co., Ltd. to Sumitomo Osaka Cement Co., Ltd. The transfer is scheduled to be completed on October 1, 2026, subject to required approvals and other agreed conditions.

Strategic rationale

Sumitomo Corporation cited structural change in the cement industry and rising sustainability demands as drivers for reviewing its business structure. The transfer is intended to combine Sumitomo Osaka Cement's technological capabilities and business foundation with S.C. Cement's nationwide distribution network and ready‑mixed concrete manufacturing capabilities to strengthen the business platform.

Post‑transfer arrangements

Following the transfer, Sumitomo Corporation will remain involved in S.C. Cement while collaborating with Sumitomo Osaka Cement to strengthen supply systems, improve operational efficiency and create new value domestically and overseas. The transfer is expected to have minimal impact on Sumitomo Corporation's consolidated financial results.

Company overviews and governance

S.C. Cement was established on March 30, 1988, and supplies cement‑related products and ready‑mixed concrete; it operates eight ready‑mixed concrete plants and had 103 employees (non‑consolidated) and 210 (consolidated) as of March 31, 2026. Post‑transfer shareholding will be Sumitomo Osaka Cement 70% and Sumitomo Corporation 30%, with Junji Kitao as chairman and Takayuki Hisamitsu as president (company name to be determined). Sumitomo Osaka Cement was established on November 29, 1907, and had 1,364 employees (non‑consolidated) and 3,045 (consolidated) as of March 31, 2026.