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[Industry Focus]：Runjing Technology wholly acquires two Chinese factories of Sumitomo Chemical

Read： 294 Time：10months ago Source：化工新材料、化盈通

Haike Group announced on April 16 that Zhenjiang Runjing High Purity Chemical Technology Co., Ltd. wholly-owned acquired Sumitomo Chemical Co., Ltd.'s Sumitomo Chemical Co., Ltd. Sumitomo Electronic Materials Technology (Hefei) Co., Ltd. and Sumitomo Electronic Materials Technology (Chongqing) Co., Ltd.

Runjing Technology was established in 2008 and became a wholly-owned subsidiary of Haike Group in 2017. It is a developer (TMAH) manufacturer. In 2020, Runjing Technology established Hefei Core Electronic Materials Co., Ltd. in Hefei, using advanced wet electronic chemicals production technology, the layout of high-purity hydrogen peroxide, ammonia, isopropyl alcohol and other semiconductor-grade products, currently in the world's leading 12-inch fab has started product import work.

Runjing Technology said that through the acquisition, it will quickly expand its product portfolio (such as etching solution, stripping solution, CF developer), thus improving the competitiveness of Runjing Technology in China's wet electronic chemistry market. At the same time, the regional layout of Chongqing and Hefei can realize the rapid response of local customers.

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Two companies sold by Sumitomo

sumitomo Chemical has been engaged in the business of process chemicals for flat panel displays in China since 2009. It has been deeply involved in the industry for 15 years and has established good relations with local customers with stable growth in performance. Hefei and Chongqing residential chemical companies have high-quality research and development and quality control capabilities, focusing on providing downstream customers with stable quality etching solution, developer, stripping solution and other products.

Sumitomo Electronic Materials Technology (Chongqing) Co., Ltd. is a company invested by Sumitomo Chemical Co., Ltd., South Korea Toyo Fine Chemical Co., Ltd. In March 2014, the project was settled in Chongqing, and the project is located in Beibei Water and Soil High-tech Industrial Park in Liangjiang New District.

The company is mainly responsible for the new project of supporting chemical plants for the LCD flat panel display industry base, using the latest technology developed by the South Korea with the world's leading level, and providing environmentally friendly, safe and recyclable high quality chemical materials to well-known domestic LCD manufacturers. The main products are Etching stripping solution, developer, etc. The company at the end of February 2015 trial production and supply to the host plant, and actively expand the southwest LCD supporting market.

Sumitomo Electronic Materials Technology (Hefei) Co., Ltd. is a wholly-owned enterprise established by Sumitomo Chemical Co., Ltd. with a full investment of US $25 million. It was established in October 2009 and is located in the Hefei New Station Comprehensive Development Pilot Zone.

Hefei Xinzhan High-tech Zone is a gathering area of Anhui's "core screen" industry. In recent years, the area has closely followed the positioning of the "core screen" industry and vigorously implemented industrial chain investment promotion. It has introduced core projects such as BOE, Visino, Jinghe, Rainbow, Xinyihua, Huike and Sanlipu, as well as a large number of supporting projects including the world's top 500 French liquid air, Sumitomo Chemical and Corning.

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Poor performance, Sumitomo accelerates transformation

its results are slipping due to a downturn in its core petrochemical business. Sumitomo Chemical expects a loss of 95 billion yen (about 4.5 billion RMB) in the consolidated final profit and loss (International Accounting Standards) for fiscal year 2023 (up to March 2024) (a profit of 6.9 billion yen in the previous fiscal year), after turning the expected profit of 10 billion yen into a loss, which will be Sumitomo Chemical's first annual loss in 11 years.

Sumitomo Chemical President Kyu Iwata said, "This is the biggest crisis since its establishment". He revealed that in view of the grim performance, the company will stop paying directors' bonuses until March 2024, and President Iwata and President Shikura Yahe will also independently return 10% of the monthly basic directors' salaries within five months.

Sumitomo Chemical also announced its performance improvement plan as of March 2025, which will sell or reduce about 30 of its businesses, of which about 10 are planned to be implemented in March 2024.

In December 2023, Sumitomo Chemical announced its decision to close the cyclohexanone production facility at the Ehime plant by the end of March 2024, that is, to completely withdraw from the domestic production of nylon raw materials in Japan.
On January 30, Sumitomo Chemical stated that it plans to suspend production of one polarizer production line at its Pingze plant in South Korea and Tainan City, Taiwan, China, from spring to autumn 2024. Part of the production line at one of its Japanese factories has been discontinued. In response, Sumitomo Chemical's production cut was cited as an oversupply caused by falling demand for televisions and increased production from other manufacturers.

On March 1, Sumitomo Chemical announced the company's upcoming organizational changes, effective April 1. Sumitomo Chemical said: In order to achieve a "V" recovery in 2024, the group will continue to strengthen infrastructure and lay the foundation for fundamental structural reforms in the future.

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