Getting to Know Sumitomo Corporation: OUR HISTORY
Supported by Sumitomo's business philosophy,
the Sumitomo Corporation Group has continued to grow
while tackling various operating environment changes.
Sumitomo's Business Philosophy
Honoring the principles of “integrity and sound management,” we pursue sincere and sound business activities, acting with an enterprising spirit to contribute to society.
Forming the base for Sumitomo Corporation's activities, this sentiment is encapsulated in Sumitomo's business philosophy, which has been passed down for more than 400 years since the inception of Sumitomo in the 17th century.
(Source: Sumitomo Historical Archives)
(Source: Sumitomo Historical Archives)
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1919 Foundation
Sumitomo Corporation was originally founded as the Osaka North Harbour Company Limited in December 1919. The company engaged in real estate management, conducting land reclamation in the Hokko (North Port of Osaka) and the development of the surrounding areas, along with other activities. |
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1945 Advance into trading business In 1945, the company was renamed Nippon Engineering Co., Ltd., and advanced into the trading business, handling products from Japan's major manufacturers as well as products manufactured by its own group companies. From then on, the company focused on trading, aiming to expand both the range of products it traded and the industrial segments in which the company operated. |
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1950 Expansion of its presence abroad The company began steadily expanding its presence overseas, posting an employee to Bombay (now Mumbai), India, for the first time in 1950, and subsequently establishing a U.S. subsidiary in New York in 1952. |
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1952 Name changed to Sumitomo Shoji Kaisha, Ltd. The General Headquarters of the Allied Powers in Japan issued an order calling for the dissolution of zaibatsu financial conglomerates in 1945. As a result, the usage restriction of the “Sumitomo” trade name and trademark were abolished in 1952 in conjunction with the signing of the Treaty of San Francisco. Accordingly, the company's name was changed to Sumitomo Shoji Kaisha, Ltd., at this time. |
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1962 Adoption of the product division structure In conjunction with the expansion of its business area and transaction volumes, for enabling all of the Company's business to be advanced through unified policies, the product division structure was adopted in 1962. This move involved consolidating the Osaka and Tokyo sales offices and creating nine product divisions: Iron & Steel, Nonferrous Metals, Electric, Machinery, Agriculture & Fishery, Chemicals, Textiles, General Products & Fuel, and Real Estate. These product divisions were assigned the responsibility for transactions and profitability as well as the human resources-related authority for their respective business. |
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1977 “Big Three & The Best” In 1977, the Company launched its slogan of “Big Three & The Best,” and passionately pursued the goal which signified it as being one of the top three companies in terms of total trading transactions and the overall best company in the industry from an all-encompassing standpoint by improving profitability and efficiency. |
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1979 Introduction of sales division system In 1979, a sales division system was introduced in connection with the expansion of the Company's business scope. By promoting empowerment to the four newly established sales divisions—Iron & Steel; Machinery & Electric; Nonferrous Metals, Chemical & Fuel; and Consumer Products— flexibility in sales division was greatly improved. |
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1988 Vision of Integrated Business Enterprise In 1988, the Company set out its vision of becoming an Integrated Business Enterprise and promoted (1) acceleration of business activities, (2) expansion into downstream fields, and (3) reinforcement of Integrated Corporate Strength, based on existing trading activities. Through these promotions, the Company aimed to form two major revenue sources: trading activities and business activities. |
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1996 The copper incident In 1996, it came to light that the general manager of a sales department was conducting unlawful copper trading unbeknownst to the Company. This incident led to the recording of losses to the extent of ¥285.0 billion, and roughly a decade was required to resolve the issue. Learning from this experience, the Company implemented a strict internal control system to prevent the recurrence of similar acts. |
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1998 Establishment of the Corporate Mission Statement and introduction of the Risk-adjusted Return Ratio In 1998, the Sumitomo Corporation Management Charter was revised, and the new Corporate Mission Statement was formed. The Risk-adjusted Return Ratio was introduced as a new management indicator to serve as a common benchmark for judging the profitability of projects based on the amount of returns generated compared with inherent risks. |
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2000 Implementation of medium-term management plans Under the Reform Package, a medium-term management plan was adopted in 1999, and the Company pushed forward with reforms aimed at achieving (1) profit growth by expansion of core businesses, (2) strengthening the corporate constitution through risk asset management, (3) realization of effective, efficient management, and (4) reinforcement of cost competitiveness. After the conclusion of this plan, the Company worked to strengthen its earnings base by formulating and implementing a series of two-year medium-term management plans, including Step Up Plan, AA Plan, AG Plan, and GG Plan. |
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2001 Consolidated Head Office in Tokyo
In 2001, the names of the “Osaka Head Office” and “Tokyo Head Office” were abolished, and the Head Office functions were consolidated within a new location at Harumi Triton Square, in Chuo-ku, Tokyo. At the same time, the Company introduced the business unit system, giving rise to the Kansai Regional Business Unit, Chubu Regional Business Unit, and Kyushu Okinawa Regional Business Unit. Harumi Triton Square was created through a development project that was spearheaded by the Company. With a scale of ¥300.0 billion, this project garnered a considerable amount of attention as the largest commercial facility development project in Japan at that time. |
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2015 Overall loss recorded due to substantial impairment losses The Company has continued to strengthen its earnings base since the financial crisis that followed the bankruptcy of Lehman Brothers in 2008. However, in fiscal 2014 the Company recognized substantial impairment losses on several large-scale projects, forcing it to record an overall loss for the first time in 16 years. |
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2015 New medium-term management plan: In 2015, we launched our new medium-term management plan—“Be the Best, Be the One 2017.” To make Groupwide efforts in overcoming issues and to outline a path toward the realization of “What We Aim to Be” is theme for the management plan. |
