Sumitomo Electric Industries, Ltd. announced that it has reached a basic agreement with Sumitomo Bakelite Co., Ltd. to acquire all the shares of its flexible printed circuit (FPC) manufacturing subsidiary Sumitomo Bakelite Vietnam Co., Ltd. |
1. Purpose of the stock acquisition
The Sumitomo Electric Group has been manufacturing FPCs in Japan, China, Philippines and Vietnam to supply customers around the world. FPCs are wiring materials consisting of copper circuitry formed on ultra-thin insulation film, and widely used in electronic devices for downsizing purposes. The demand for FPCs is expected to grow further due to the increasing global demand, particularly in China and East Asian countries, for personal digital assistances, such as smartphones and tablet computers, as well as electronics devices including flat screen TVs and video game consoles.
In view of this, Sumitomo Electric had been exploring the possibilities of enhancing its FPC manufacturing capabilities. The Company will discuss detailed terms and conditions with Sumitomo Bakelite and complete the acquisition in the end of September 2012.
2. Profile of Sumitomo Bakelite Vietnam Co., Ltd.
| Company name |
Sumitomo Bakelite Vietnam Co., Ltd. |
| Representative |
Masaya Fumita, General Director |
| Head office |
Hanoi, Socialist Republic of Vietnam |
| Establishment |
August 10, 2001 |
| Business |
Manufacture and sales of FPCs |
| Fiscal year end |
December 31 each year |
| Sales |
US$65 million (for FY ended December 2010) |
| Operating income |
∆ US$20 million (for FY ended December 2010) |
| Net income |
∆ US$20 million (for FY ended December 2010) |
| Capital |
US$20 million |
| Investment ratio |
Sumitomo Bakelite Co., Ltd.: 100% |
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