Sumitomo Pipe & Tube to Target 60% Higher Profit in 5 Years

Sumitomo Pipe & Tube targets 10 billion yen of consolidated recurring profit in fiscal 2013 ending March 2014 compared with estimated 6.2 billion yen for fiscal 2008. The firm launches new 5 year business plan from fiscal 2009 starting April to improve the technology and expand the sales eyeing new offshore production site for next growth.

The president Mitsuru Maruo said the firm tries to expand the automotive tube business through the technology advantage while the business condition gets worse under worldwide slow economy. He said the firm tries to grow through the 5-year plan eyeing double of corporate value in future.

The firm tries to develop new products to support lighter automobile weight. The firm expands the research and development investment to offer new technology and solutions for the users. The firm doubles capital expenditure for the 5-year, mainly for renewal compared with past 5 years. The firm also improves the optimum production system for the bases in Ibaraki, Hyogo, Wakayama, USA and China. The firm tries to establish new offshore production base other than China.