Sumitomo Corp. Buys 50% Share of HOWCO Group

Sumitomo Corporation announced on Thursday the firm acquired 50% share of HOWCO Group, which is oil well tube metal parts supply chain management service provider in United Kingdom, for more than 10 billion yen after the agreement for partnership. Sumitomo Corp. enters into parts manufacturing to expand the oil business along with existing oil well tube trading. Sumitomo Corp. decided the partnership with HOWCO, which has no.1 share with 31% in the metal parts. They seek synergy by integrating HOWCO’s parts and materials supply to oil well machine and service provider and Sumitomo Corp.’s oil well tube supply to oil majors. Sumitomo Corp. will expand the value chain of oil well materials and machinery supply. HOWCO is metal materials and parts supplier for oil well machinery makers. The firm has supply chain management service agreements with major oil well machinery makers. The firm expanded the sales to around 44 billion yen from 13 billion yen 5 years ago. The oil well machinery materials market is expected to grow from current 140 billion yen to 210 billion yen in 2010.