en.Wedoany.com Reported - Sumitomo Corporation has agreed to transfer 70% of the shares of its wholly owned subsidiary, S.C. Cement Co., Ltd., to Sumitomo Osaka Cement Co., Ltd. The transaction is expected to be completed on October 1, 2026, subject to obtaining necessary approvals and meeting other customary conditions.

Sumitomo Corporation stated that structural changes in the cement industry and growing demand for sustainable development prompted a review of its business structure. The transfer aims to combine Sumitomo Osaka Cement's technical expertise and business foundation with S.C. Cement's nationwide distribution network and ready-mixed concrete manufacturing capabilities, thereby strengthening the business platform.

Upon completion of the transfer, Sumitomo Corporation will continue to participate in the operations of S.C. Cement and collaborate with Sumitomo Osaka Cement to strengthen the supply system, improve operational efficiency, and create new value both domestically and internationally. The impact of this transfer on Sumitomo Corporation's consolidated performance is expected to be minimal.

S.C. Cement was established on March 30, 1988, and is primarily engaged in the supply of cement-related products and ready-mixed concrete. It operates eight ready-mixed concrete plants and, as of March 31, 2026, had 103 employees (non-consolidated) and 210 employees (consolidated). Following the transfer, the shareholding structure will be 70% held by Sumitomo Osaka Cement and 30% by Sumitomo Corporation, with Junji Kitao as Chairman and Takayuki Hisamitsu as President. The company name is to be determined. Sumitomo Osaka Cement was established on November 29, 1907, and as of March 31, 2026, had 1,364 employees (non-consolidated) and 3,045 employees (consolidated).