Sumitomo Corporation - Mitsubishi Corporation invests in French carbon fiber reinforced plastic molding manufacturer Epsilon Composite SAS
June 12, 2024 at 07:20 pm IST
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Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Ueno Shingo) has entered into a shareholder purchase and sale agreement and a shareholders agreement for its investment in Epsilon Composite SAS (Head Office: Bordeaux, France; CEO: Stephane Lull; hereinafter, 'EC'), and has obtained all necessary approvals from the authorities, completing the investment.
About EC
EC is a carbon fiber reinforced plastic (CFRP) (? 1) molding manufacturer established in 1987. They manufacture high-performance CFRP products at low cost using a unique method that combines their own technology with a manufacturing process called pultrusion. They have sales bases in Japan, Italy, Austria, Mexico, etc., and are expanding their business in a wide range of fields around the world, including the construction industry, general industry such as camera tripods and robot arms, sports and leisure, aviation, and energy.
Background of the investment and future developments
Sumitomo Corporation has been supplying carbon fiber to European companies, including EC, for over 30 years since the early days of the carbon fiber market, and has extensive knowledge and networks in the carbon fiber industry. This investment will strategically expand its revenue base downstream in the value chain, where significant growth is expected, in order to further grow its carbon fiber-related business.
After this investment, Sumitomo Corporation plans to maximize the use of its global network and the knowledge it has built up through various businesses to enhance EC's corporate value. As one example, it plans to expand sales of the overhead power transmission line core material that EC manufactures using CFRP. This product is capable of transporting a larger amount of high-voltage current safely and with high transmission efficiency while utilizing existing facilities, and is therefore believed to contribute to the promotion of renewable energy.
Through the above, we will create synergies with the renewable energy business being developed by Sumitomo Corporation, and expand EC's product lineup by combining EC's technological capabilities with Sumitomo Corporation's network functions. By further popularizing CFRP products, we will contribute to reducing CO2 emissions toward a decarbonized society.
Sumitomo Corporation is a diversified group organized around 7 areas of activity:
- retail distribution of consumer goods (24.4% of net sales): food products, apparel and accessories, pharmaceuticals, building materials, household and decorative items, etc. The group is also developing a real estate business;
- trading of hydrocarbon, mining, chemicals and electronics products (24%): oil, natural gas, copper, gold, silver, zinc, lead, nickel, coal, iron ore, resins, pesticides, petrochemical products, etc.;
- trading of steel products and non ferrous metals (20%): flat and long steel products, tubular products, aluminum products, titanium, etc.;
- distribution of transportation and construction systems and equipments (15.1%): spatial equipments, landing fields, forest machines, motorcycles, mining operating vehicles, etc.;
- telecommunications and multimedia products and services supplies (8.8%): TV wiring, data communication solutions, film distribution services, mobile telephony, Internet access and computing services;
- development and implementation of civil engineering infrastructures (7.6%): power plants, wastewater treatment units, industrial plants, telecommunications centers, etc. The group is also providing logistics services;
- other (0.1%).
SUMITOMO CORPORATION 
