Spurring Change Bold Steps Merging with the Cement Giant of Western Japan

Merging with the Cement Giant of Western Japan

When property and stock prices plummeted in 1991, and the bubble economy collapsed, the Japanese economy entered a period of dramatic change. Numerous companies underwent restructuring amid ongoing stagnation domestically and increased pressure on global competition. The cement industry was also sucked into this vortex as domestic demand fell year after year from a fiscal-1990 peak of 86.29 million tons. As the impact of the strong yen reduced the cost competitiveness of Japanese cement makers in exports, which had remained strong, and as products from other Asian countries with newly established own industrial bases began to enter the market, it became inevitable that the industry would enter a period of excessive competition. Sumitomo Cement amalgamated with Osaka Cement, the cement giant of western Japan, to take advantage of synergies such as factory locations, and to once again restructure the industry, forming Sumitomo Osaka Cement in 1994. The merged company diversified into a broad range of fields including cement-related products, mineral resources, advanced materials, and optoelectronics, while maintaining cement as its core business. With this newly enhanced competitiveness, Sumitomo Osaka Cement will continue to take decisive steps to open up new possibilities for the future. Preparation of this article was overseen and photos provided by Sumitomo Shi-ryo-kan and Sumitomo Osaka Cement. CORPORATE DATA As of March 31, 2003 FOUNDED 1907 PAID-IN CAPITAL 41,654 million NUMBER OF EMPLOYEES 2,927(consolidated), 1,404(parent) HISTORIC MILESTONES Sumitomo Cement Co., Ltd. 1907 Founded as Iwaki Cement Co., Ltd. 1949 Starts production and sale of ready-mixed concrete; first company in Japan to do so 1963 Company renamed Sumitomo Cement Co., Ltd. 1994 Tie-up with Phinma Group of the Philippines (Equity participation in Davao Union Cement Corporation) Osaka Cement Co., Ltd 1916 Company becomes Cement Division of Osaka Yogyo Co., Ltd. (a corporation founded in 1882). 1926 Osaka Yogyo Cement Co., Ltd. founded 1963 Company renamed Osaka Cement Co., Ltd. Sumitomo Osaka Cement Co., Ltd 1994 Sumitomo Cement and Osaka Cement merge into Sumitomo Osaka Cement Co., Ltd. 1997 Non-utility power generation equipment (output: 100,000 kW) put into operation at Ako Plant 1998 Tie-up with Denki Kagaku Kogyo Co., Ltd. in the cement business 1999 Tie-up with Ube Mitsubishi Cement Corporation in cement distribution

Advanced materials business The advanced materials business develops and manufactures nano-particles and nano-particle application products. The photo above is an Electrostatic-Chuck made of advanced-ceramics (dispersed high purity SiC nano-powders).. Optoelectronic bussiness The optoelectronics business develops and produces fiber optic components, optical equipments for cable television systems, optical IT equipment, and other products. The photo above is a LiNbO3 (LN) modulator. This new business field for Sumitomo Osaka Cement provides the ideal solutions for IT infrastructure.. Mineral resources business Sumitomo Osaka Cement owns a considerable amount of limestone resource in Japan. Besides cement, the company is also involved in a wide range of fields including steel, chemicals, electric power generation, and building materials.