Sumitomo Chemical spins off Chinese flat panel display company

Sumitomo Chemical announced that it will divest all shares of its two flat panel display (FPD) process chemicals subsidiaries in China to Zhenjiang Runjing High Purity Chemical Technology (Runjing Technology). The transaction is expected to be completed by the end of May this year. Financial details of the deal were not disclosed.

Sumika Electronic Materials (Hefei), located in Hefei City, Anhui Province, China, and Sumika Electronic Materials (Chongqing), located in Chongqing, China, are both manufacturers of FPD process chemicals. These entities were established in 2009 and 2014 respectively and are wholly owned by Sumitomo Chemical and its subsidiaries.

Buyer Runjing Technology is headquartered in Zhenjiang City, Jiangsu Province, China. Founded in 2008, it is part of Shandong Haike Holding, a conglomerate that also includes Shandong Haike Group, which specializes in the production and sales of electronic chemicals, organic electrolytes and fine chemicals. Founded in 2014, Shandong Haike Group is a petrochemical energy and specialty chemicals manufacturer. 

Sumitomo Chemical said that the business restructuring is part of the group's short-term intensive performance improvement measures, "laying a stronger foundation for a V-shaped recovery in fiscal 2024 and laying the foundation for future fundamental structural reforms."