Sumitomo Chemical Divests Chinese Flat Panel Display Companies
Sumitomo Chemical has announced to divest all of its shares in two of its flat panel display (FPD) process chemical subsidiaries in China to Zhenjiang Runjing High Purity Chemical Technology (Runjing Tech). The transaction is expected to be completed by the end of May this year. Financial details of the transaction were not disclosed.
Sumika Electronic Materials (Hefei), based in Hefei, Anhui Province, China, and Sumika Electronic Materials (Chongqing), located in Chongqing, China, are both manufacturers of FPD process chemicals. Established in 2009 and 2014 respectively, these entities have been fully owned by Sumitomo Chemical and its subsidiaries.
The buyer, Runjing Tech, based in Zhenjiang, Jiangsu Province, China, was founded in 2008 and specializes in the production and sale of electronic chemicals, organic electrolytes, and fine chemicals as part of Shandong Haike Holding, a conglomerate that also includes Shandong Haike Group, established in 2014, a manufacturer of petrochemical energy and special chemicals.
Sumitomo Chemical said that the restructuring of its businesses is part of the group’s short-term intensive performance improvement measures “to secure a stronger footing to achieve a V-shaped recovery in fiscal 2024, and lay the groundwork for fundamental structural reforms in the future.”
