Sumitomo Heavy Industries (TYO:6302) To Establish Construction Machinery Leasing Company In China

Sumitomo Heavy Industries (TYO:6302) Announce the establishment of a construction machinery leasing company in China.

Information about the establishment of a construction machinery leasing company in China is set out below.

We (Sumitomo Heavy Industries) have decided to establish a construction machinery leasing company in China at our executive meeting on 9th May, 2011, and advise the following.

1. Objective of Establishment

Our group is developing our business, including actively increasing capacity of our Tangshan Factory in Hebei Prefecture in the rapidly expanding Chinese market.

The establishment of a construction machinery leasing company will help us meet the demand for the rapidly increasing requirement for construction machinery, so we can expect further increase of sales in this area. Up to now we executed the leasing business with the cooperation of local financial institutions. By holding this new company we can make certain increases in the volume of sales.

2. Information about our new company
(1)Location: Shanghai, China
(2)Business Activity: Leasing for the sales of construction machinery in China
(3)Capital: 20,000,000 USD
(4)Commencement of Business: April 2012 (Planned)
(5)Shareholder: 100% Sumitomo Heavy Industries Ltd.

We will inform the new company name and representative's name as soon as it is decided.

3. Forecast for the future
The influence of the establishment of this new company on our current phase (March of 2012) of achievement is slight.

Sumitomo Heavy Industries Ltd.
Representative: CEO Yoshinobu Nakamura
Stock Code: TSE 6302

About Sumitomo Heavy Industries Ltd.

Sumitomo Heavy Industries Ltd. (TYO:6302) has five business segments. The Standard and Quantum Machinery segment manufactures and sells reducers and transmissions, plastic processing machinery, laser processing machines, cryogenics, laser annealing systems, forklift and defense equipment products, among others. The Environmental System, Plant and Others segment offers boilers, industrial waste treatment facilities, pulp manufacturing equipment, air pollution control equipment, water treatment plants and food processing machines. The Vessel Steel Framing and Equipment segment manufactures and sells vessels and reaction containers. The Machinery segment offers logistics systems, parking lot systems, forging press equipment and industrial turbine pumps. The Construction Machinery segment offers hydraulic shovels, road equipment and construction cranes.

 

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Sumitomo Heavy Industries Ltd.