SEI to Succeed Sumitomo Bakelite’s FPC Business in Vietnam

Sumitomo Electric Industries (SEI) and Sumitomo Bakelite announced on Friday the companies agreed in SEI’s acquisition of all shares in Sumitomo Bakelite Vietnam (SBV), Sumitomo Bakelite’s subsidiary to make flexible printed circuits (FPCs) in Vietnam. Sumitomo Bakelite withdraws from FPC production and sales business. The share acquisition will complete at the end of September 2012.

Sumitomo Bakelite has suffered from low sales volume and worse profitability of FPC business in recent years. The company has shut down domestic production and R&D bases of FPC and integrated FPC production into SBV. The firm also implemented cost cut measures including layoff. However, the firm judged the profit improvement is impossible in current market conditions and decided the withdrawal from the business at the end of September 2012.

SEI produces FPC in Japan, China, the Philippines and Vietnam. The company has considered output capacity expansion to follow the demand growth for FPCs applied to mobile tools, flat televisions and gaming machines. SBV is Sumitomo Bakelite’s 100% subsidiary. SBV posted annual net sales at US$ 50.72 million (approximately 4 billion yen) with net loss at US$ 11.41 million in 2011.