Sumitomo Corp and Sekisui Chemical Establish Joint Venture in Russia

Wed, 16 July 2008

Sumitomo Corporation (President and CEO: Susumu Kato; hereinafter,"Sumitomo") and SEKISUI CHEMICAL CO.,LTD (President & Representative Director: Naotake Okubo; hereinafter, "Sekisui") have determined to set up a joint venture with ZAO Vodokanalstroy (President: Agiyan Vladimir; hereinafter, "VKS"), a local contractor of water supply and sewage systems, to tap the rapidly growing water environmental infrastructure industry in Russia. Sumitomo, Sekisui and VKS shall contribute equity at a level of 40 percent, 30 percent, and 30 percent, respectively, to the joint venture, which will be based in the city of Vsevoloћsk, Leningrad Oblast, neighboring St. Petersburg, Russia's second largest city.

Combining Sekisui's long-accumulated product expertise and manufacturing technologies, Sumitomo's business management capabilities and VKS' local construction experience, the joint venture aims to create cutting-edge chemistry, continuously expand its market position and increase business for glass-fiber reinforced plastic (GRP) pipes in Russia. Sekisui will be the first Japanese plastic pipe manufacturer to build a production base focusing on the water environment infrastructure market in Russia.