Motor cores are used in industrial motors, electric vehicles, hybrid cars, and wind power generation.

Business Environment

In emerging countries, robust consumer spending is fueling growing demand for automobiles, motorcycles, home appliances, and building materials. Further, a shift to railway transportation in developed countries and railway infrastructure development in emerging countries are expected to further boost demand for the steel products used as raw materials for this infrastructure.

Strengths and Strategies

In the steel sheet business, we will sharpen the competitive edge of our steel service center network spanning 36 companies in 14 countries worldwide, primarily in Asia and China, in step with changes in the business environment. In the transportation equipment business, which includes railway wheels, axels and automotive crankshafts, we will strive to grow market share by developing manufacturing and sales sites in regions around the globe.

Actions for What We Aim to Be

Sumitomo Corporation acquired all the shares of K+S, one of Europe’s largest motor core manufacturing and sales companies. Motor cores are used in products such as industrial motors, electric vehicles, hybrid cars, and wind-generated power. Demand for motor cores is expected to grow on the back of environmental measures and awareness of rising energy costs.
Also, we participated in the specialty steel processing and sales business in India where rising demand is projected along with the increase in motorcycles and automobiles.

Small-diameter seamless steel pipe manufactured at Vallourec Star, LP in the U.S.

Business Environment

Demand for tubular products, including OCTG and line pipes for transporting oil and gas, is anticipated to increase over the medium to long term, in response to heightened demand for energy mainly in emerging countries.

Strengths and Strategies

Our business in the tubular products field boasts an industry-leading network and trading volume. This has been achieved by developing operations that demonstrate various value-added functions globally. For example, we have built supply chain management systems around the world, based on 23 contracts in 14 countries, providing integrated services ranging from ordering of tubular products to inventory management, processing, inspection, transportation and maintenance. We intend to continue enhancing the tubular product value chain we have developed so far, with a view to expanding our earnings base.

Actions for What We Aim to Be

In North America, we are engaged in a seamless steel pipe manufacturing business, as shale gas and oil development is expected to continue growing in the future. In addition to a medium-diameter seamless steel pipe mill, we have invested in a small-diameter seamless steel pipe manufacturing business as part of steps to reinforce our supply framework.
In addition, we aim to further enhance our tubular products value chain by bolstering operations in fields related to the OCTG business—namely oilfield equipment, material, and services.

Electric furnaces for smelting aluminum ingots at Press Metal Berhad in Malaysia

Business Environment

The scope of usage and application of aluminum, titanium and other non-ferrous metal products has broadened in recent years, with demand for them expected to grow further. This market should continue to expand, given the strong need to reduce the weight and improve the fuel economy of automobiles, aircraft and other transportation equipment.

Strengths and Strategies

In the aluminum business, we boast one of the highest transaction volumes in aluminum sales among Japanese general trading companies. We aim to build a value chain from smelting operations upstream to rolling mills midstream to expand our business base further, and accelerate the development of production locations near the growing global market for aluminum.

Actions for What We Aim to Be

In Malaysia, we are developing aluminum smelting operations with Press Metal Berhad, the country’s biggest aluminum extrusion products company.
Additionally, we worked in partnership with other companies to acquire a rolled aluminum sheet manufacturing and sales company in the U.S., and are developing an aluminum can materials business focused on the Americas.

The OCTG inventory operation team in Sakhalin

In the Metal Products Business Unit, all subsidiaries and associated companies document their safety activities in accordance with the Group’s Safety Manual, Safety and Hygiene Management Guidelines, and Work handbooks, and every employee is appropriately trained on safety in the workplace. This vigilance helps prevent accidents before they happen.

The Tubular Products Division manages and operates the tubular products businesses throughout the world. The division has set a “Zero Harm” target, and has established a global safety network and implemented common and standardized safety management systems. The target, network and systems focus on efforts to continually improve operational management and maintain safe working environments. The division is using this network to facilitate timely sharing of safety information, greatly improve inter-regional communication, strengthen safety systems and promote safety measures. During the fiscal 2012, members of the network visited business and operational sites in North America, Europe, Asia-Pacific, the Middle East and the Far East. At each location they evaluated the status of safety management and worked with the employees there to identify opportunities for improvement. The Sakhalin operation achieved a seventh consecutive year without a lost time accident.