Business Unit Overview
In the chemicals and electronics field, we trade in raw materials, organic and inorganic chemicals and plastics, and cutting-edge electronics industry materials and actively engage in EMS operations. In the life science field, we handle pharmaceuticals, crop protection products, fertilizer, and pet care products.
Strategic Fields in Sub-Saharan Africa
- Veterinary products
- Crop protection products
- Healthcare related products
Business Overview in Sub-Saharan Africa
- Supply of household insecticides to South Africa and Sub-Saharan Africa
- Share participation in a distributor of crop protection products in South Africa
- Supply of various other chemicals
Sumitomo Corporation’s global successes
Agribusiness in Brazil grows and expands
In May 2015, Sumitomo Corporation and Agro Amazonia announced their agreement to have Sumitomo acquire a 65% share of Agro Amazonia, a distributor of farm and livestock supplies including but not limited to agrochemicals, fertilizers, seeds and veterinary products. This investment gave us an entry point to agricultural input business, representing the first full-scale investment of its kind in the state of Mato Grosso by a Japanese company. This opens opportunities to a quick and successful expansion in the coming years. In 2016, the company opened three new branches, in addition to the 29 existing branches in five states in Brazil. In 2017, Agro Amazonia plans to open branches in the states of Mato Grosso, Mato Grosso do Sul and Goias. Having set a vision of being the best and the biggest agricultural and livestock supply distributor in Brazil, the company has an exciting expansion plan for opening new branches per year in the coming years.
In 2011, we acquired Alcedo S.R.L., the largest agricultural material distribution company in Romania and transformed the company into an agricultural input & service business by enhancing peripheral functions such as the sale of materials for agricultural production, as well as inland collection and export of grain. Alcedo has successfully boosted its sales and profit almost two-fold over the last five years by leveraging Sumitomo’s finance sourcing and procurement capability while maintaining Alcedo’s strength. The Agro Amazonia investment is an example of Sumitomo expanding this strategic business model into other countries and providing specific services tailored to the needs of each country or region.
Investment in Spain-based Biocontrol Company
In January 2017, Sumitomo Corporation invested in Futureco Bioscience (Futureco) through Sumi Agro Europe (SAE), a wholly-owned subsidiary of Sumitomo Corporation. Biocontrol products have low environmental impact. Their market has been expanding at a rate of more than 10% per year in Europe and is expected to grow into a 600 billion yen market worldwide within 5 years. With an aim to capture the growing demand for biocontrol products, SAE plans to increase the transaction volume of biocontrol products to 6 billion yen by FY2020. We will leverage Futureco’s strength in R&D to accelerate development of biocontrol products as well as to expand the business on a global basis using the distribution networks of SAE and the Sumitomo Corporation Group. We will also bring about synergies between product planning and development of chemical crop protection products by incorporating highly versatile products of Futureco into our product portfolio.