Sumitomo Corporation to acquire shares in manufacturer of automotive brake components

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) has reached an agreement with Honda Motor Co., Ltd. (hereinafter, “Honda”) to acquire shares of Asama Giken Co., Ltd. (hereinafter, “Asama Giken”) from the automaker. Asama Giken (Head Office: Komoro City, Nagano Prefecture; President: Mitsuo Yamamoto) is a manufacturer of automotive brake components.

The market for brake discs and drums, which are used to control automotive wheels, has been expanding in line with the global development of the automobile industry. Also, recently, great changes have been made in the automotive field, including the spread of EVs and advancement of self-driving technology. Accordingly, the reliability of safety-related parts is becoming increasingly important.

Asama Giken has long been supplying brake discs, drums and other brake components, mainly to Honda and its affiliated automotive component manufacturers, and has one base in Japan, two bases in the United States and another one in Indonesia.

Sumitomo Corporation made KIRIU Corporation (hereinafter, “KIRIU”), a manufacturer of automotive brake components, one of its subsidiaries in 2004 and has since been promoting the business through proactive expansion overseas. By acquiring the shares of Asama Giken, Sumitomo Corporation will further expand the business while adding more value to the products. KIRIU and Asama Giken together will take the top spots in the brake discs and drums market in Japan, the United States and Indonesia.

Sumitomo Corporation will continue enhancing its automotive manufacturing business to meet the increasing demand for automotive brake components, while also contributing to the creation of a more convenient and safer society.

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