Sumitomo Chemical Sells Two Chinese Subsidiaries to Runjing Technology
Sumitomo Chemical has announced that it has agreed to sell its two Chinese flat panel display (FPD) process chemical subsidiaries, Sumitomo Chemical Electronic Materials (Hefei) Co., Ltd. and Sumitomo Chemical Electronic Materials (Chongqing) Co., Ltd., to Zhenjiang Runjing High Purity Chemical Technology Co., Ltd. (Runjing Technology).
The sale is part of Sumitomo Chemical's restructuring efforts as it grapples with weak profits in its core petrochemical business. The company expects to record a loss of 95 billion yen (US$7.4 billion) for the fiscal year ending March 2024, its first annual loss in 11 years.
Runjing Technology is a leading Chinese manufacturer of photoresists, which are essential chemicals used in the production of LCD panels. The company has a strong track record of supplying its products to major global panel manufacturers, including Samsung, LG, BOE, BOE, AUO, and Tianma.
The acquisition of Sumitomo Chemical's two Chinese factories will give Runjing Technology access to new technologies and expand its product portfolio. It will also allow the company to better serve its customers in China, which is the world's largest market for LCD panels.
The sale of the two factories is expected to be completed in the summer of 2024.
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Date of record
17 April 2024
