ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that Marubeni-Itochu Steel Inc. (headquartered in Chuo-ku, Tokyo; Yasuo Matsuura, President & CEO; hereinafter “MISI”), an affiliate company of ITOCHU, has agreed with Sumitomo Corporation (headquartered in Chuo-ku, Tokyo; Kuniharu Nakamura, President & CEO; hereinafter “Sumitomo Corp”) to integrate their domestic steel building material business under the umbrella of both companies. It should be noted that this integration is conditional upon approval by Japanese authorities, foreign authorities, and other governmental bodies.

Operating companies and businesses subject to the integration

i) Marubeni-Itochu Techno Steel Inc. (headquartered in Chiyoda-ku, Tokyo; Atsushi Hiramoto, President; hereinafter “MITS”)
ii) Sumisho Tekko Hanbai Co., Ltd. (headquartered in Chuo-ku, Tokyo; Kiyotaka Kawasaki, President)

With regard to the three companies below, their respective steel building material business will be spun off and integrated together.

iii) Sumitomo Corporation Hokkaido Co., Ltd. (headquartered in Sapporo, Hokkaido; Takayuki Doi, President)
iv) Sumitomo Corporation Tohoku Co., Ltd. (headquartered in Sendai, Miyagi; Hideyuki Imayoshi, President)
v) Sumitomo Corporation Kyushu Co., Ltd. (headquartered in Fukuoka, Fukuoka; Hiroaki Mizobuchi, President)

Objectives and aims of the business integration

While demand for domestic construction in Japan is currently growing due to infrastructure building in preparation for the 2020 Tokyo Olympics and Paralympic Games as well as urban redevelopment projects, it is recognized that the construction market will eventually become mature over the long term.
With such background, MISI and Sumitomo Corp have reached an agreement to integrate their domestic steel construction material business with the aim of expanding service functionality for manufacturers and users.

The integrated company will direct its efforts toward reinforcing the particular strength of each company’s business, as well as leveraging the networks of the three integrated trading companies, namely, ITOCHU Corporation, Marubeni Corporation, and Sumitomo Corporation, to mutually complement each other. Furthermore, through combining an integrating human resources, product and service lineups, and networks, they will seek better serve to their stakeholders, including customers and employees.

Through the new steel building material business, the integrated company will also seek to accelerate recovery from the Great East Japan Earthquake, ensure the safety and security of local people and revitalize affected communities.

Overview of the integrated company

The integration will be achieved through a merger, with MITS as the surviving company

Marubeni Itochu Sumisho Techno Steel Inc.

Marubeni-Itochu Techno Steel Inc.

Sumisho Tekko Hanbai Co., Ltd.

Sumitomo Corporation Hokkaido Co., Ltd.

Sumitomo Corporation Tohoku Co., Ltd.

Sumitomo Corporation Kyushu Co., Ltd.