A massproduction base of cutting tools will be established in Changzhou, China.

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  • A massproduction base of cutting tools will be established in Changzhou, China.

Sumitomo Electric Industries, Ltd. (head office: Osaka/president: Masayoshi Matsumoto) and Sumitomo Electric Hardmetal Corp. (head office: Itami, Hyogo/president: Nozomi Ushijima) will establish the mass production base of carbide drills and PCD inserts "Sumitomo Electric Hardmetal (Chouzhou) Corp." (hereinafter called SHMC) in Changzhou, Jiangsu, China. On April 5 this year, we signed the contract with Wujin Hi-Tech Industrial Zone, which is the place to establish SHMC.

Sumitomo Electric Hardmetal (Chouzhou) Corp.

Sumitomo Electric Hardmetal (Chouzhou) Corp.

Now the demand for cutting tools used for machining of automotive parts, etc. is expanding in emerging countries such as China, India, Brazil, and Russia. Especially in China, the demand for cutting tools is increasing rapidly due to the rapid expansion of the automotive industry. The demand in iron and steel, railroad, construction, etc. are expanding significantly. Our group made capital investments of about 12 billion yen in 2010 to increase the production of indexable inserts, carbide drills, etc. in the domestic bases, establishment of new engineering centers for fine adjustment to customers' needs, enhancement of production capabilities of cemented carbide materials/diamond sintered compact materials/CBN sintered compact materials, etc. in order to respond to the expansion of the demand in such emerging countries. Moreover, about 18 billion yen is to be invested in the expansion of global production and tungsten recycling in 2011.

In China, Sumitomo Electric Hardmetal Trading (Shanghai) Co., Ltd. in Shanghai established sales offices in the major cities such as Beijing, Guangzhou, Dalian, and Chongqing and has been reinforcing the sales capabilities in order to satisfy the rapidly-increasing cutting tool demand. Moreover, we decided to establish SHMC in Changzhou, Jiangsu, China as a massproduction base of cutting tools upon examination of measures to reinforce the production/supply organization in China.

SHMC will start production from October this year as the massproduction base of carbide drills used for drilling of steel, cast iron and PCD inserts to cut aluminum parts for automobiles, for which the demand has been increasing recently. From now on, SHMC has planned to reduce the costs of carbide drills and PCD tools significantly and to globally supply products not only in China but also Europe and other Asian countries, etc.


Overview of SHMC

Company name Sumitomo Electric Hardmetal Manufacturing (Changzhou) Co.,Ltd.
Location Changzhou, Jiangsu, China
Chairman Nozomi Ushijima
Business Manufacturing and sales of carbide drills, PCD inserts, etc.
Capital Stock 11.7 million U.S. dollars (about 1 billion yen)
Equity ratio Sumitomo Electric Hardmetal Corporation: 100%
Established in April 2011 (planned)
Started operation in October 2011
Number of employees About 120 (2012)
Sales plan 2012: About 1.3 billion yen
2013: About 3 billion yen
Building Total floor area: About 12,000 ㎡ (The land and building are rented)


Overview of Sumitomo Electric Hardmetal Corp.

Company name Sumitomo Electric Hardmetal Corp.
Location 1-1-1, Koyakita, Itami, Hyogo 664-0016 (in Itami Works of Sumitomo Electric Industries, Ltd.)
President Representative Director  Nozomi Ushijima
Business Development and manufacturing of cemented carbide, CBN/PCD cutting tools and materials, laser optics, synthesized diamond parts related to electronics, etc.
Capital Stock 5 billion yen
Equity ratio Sumitomo Electric Industries, Ltd.: 100%
Established in Tuesday, April 01, 2003
Number of employees 541 (as of the end of March 2011)
Consolidated sales 62.6 billion yen (expected amount of the fiscal year ending March 2011)
Manufacturing bases [Domestic] Sumitomo Electric Hardmetal Corp. (Itami, Hyogo)
     Hokkaido Sumiden Precision Co., Ltd. (Sorachi-gun, Hokkaido)
     Kyushu Sumiden Precision Co., Ltd. (Mukaejima-gun, Saga)
     Tokai Sumiden Precision Co., Ltd. (Mie-gun, Mie), etc.
[Overseas] America, Germany, Thailand, Korea, China, etc.