2.1.2. The Sumitomo Electric Group
Influenced by western technology and equipment in Meiji period (1868-1912), the Besshi Copper
Mine, which is the basis business of Sumitomo at that time, further increased its copper production
output. Additionally, it also entered into related businesses, in quick succession, such as the machine
and coal industries, electric cable manufacturing and forestry. At the same time, the finance business
developed into a banking business, coupled with the warehousing business, which was a part of this
banking business, became independent, and developed itself into a modern financial group. With the
dissolution of finance groups, other Sumitomo affiliated companies began to go their separate ways;
each company now plays an active part in their respective industry, and become independent from
each other.4
In 1897, after acquiring Nihon Seido Co., Ltd. for the purpose of entering the copper wire
manufacturing segment, the Sumitomo Copper Rolling Works was established to manufacture copper
wires (bare wires), copper plates, and copper rods. In 1911, the Sumitomo Electric Wire and Cable
Works was established and separated from the Sumitomo Copper Rolling Works, which then
incorporated and changed its name to the Sumitomo Electric Wire and Cable Works Ltd. and
Sumitomo Electric Industries Ltd., respectively.5
Sumitomo Electric Industries, Ltd. (hereinafter referred to as “SEI”), a Japan-based company,
engages in manufacturing and sales of electric wires and cables, and other products.
SEI is the ultimate parent company of the Sumitomo Electric Group (hereinafter referred to as “the
Group”). The Group includes 381 subsidiaries and affiliates in more than 40 countries around the
world6, mainly in Asia, North America, and Europe. Cooperation among such companies in providing
various kinds of services to the Group, such as R&D, engineering, manufacture, sales, administrative
3 http://ja.wikipedia.org/wiki/住友グループ
4 http://www.sumitomocorp.co.jp/english/company/history/index.html
5 http://global-sei.com/sei_info/history/index.html
6 http://global-sei.com/iv/annual/14/pdf/2014_all.pdf
Overview of Sumitomo Group
A.L.M.T. (Thailand) Co., Ltd. - Transfer pricing report
PwC 10
support, financing, and marketing, successfully builds the “Sumitomo” brand to be a leader in the
industry.
The Group consists of five business segments7, which are categorised by industry as follow: (1)
Automotive, (2) Infocommunications, (3) Electronics, (4) Environment and Energy, and (5) Industrial
Materials & Others. The diagram below shows the share of sales by each business segment.
Source: Sumitomo Electric Annual Report 20148
SEI was founded in April 1897 after separated from Sumitomo Copper Plant, which has business
relationship with Besshi Copper Mine (the main basis of Sumitomo business), to manufacture copper
wires (bare wires), copper plates, and copper rods. Later, the Company’s name was changed to
Sumitomo Electric Industries, Ltd. in 1939.
As of March 2014, on consolidated basis, SEI has Yen 2,159,942 million of net sales, and 206,323
employees.9
2.2. Sumitomo Electric Group History
The glorious path of the Sumitomo Group has been being developed continuously since its foundation.
As time goes by, business of “the House of Sumitomo” has been merged with and/or separated from
each other, leading to various independent groups and companies existing in the present. Hence, each
member under the Sumitomo Group shares the same long lasting history.
Historical milestones of Sumitomo Group started circa 1615 when Masatomo Sumitomo opened a
book and medicine shop in Kyoto. Around the same period, Riemon Soga, Masatomo's brother-in-law,
running a copper smelting and coppersmithing business in Kyoto since 1590 under the trade name
Izumiya, developed, with considerable effort, a copper smelting technology to extract silver from
crude copper.
7 http://global-sei.com/sei_info/org.html
8 http://global-sei.com/iv/annual/14/pdf/2014_all.pdf
9 http://global-sei.com/sei_info/outline.html
Automotive
51%
Infocommunicatio
ns
6%
Electronics
10%
Environment
and Energy
21%
Industrial
Materials &
Others
12%
Overview of Sumitomo Group
A.L.M.T. (Thailand) Co., Ltd. - Transfer pricing report
PwC 11
Tomomochi Sumitomo, the eldest son of Riemon and the son-in-law of Masatomo, extended the
business to Osaka, and disclosed such technology to other copper smelters. From his origins in the
copper trade, Tomomochi went on to become a trader under the name of Izumiya in thread, textiles,
sugar and medicines. In 1691, Izumiya opened Besshi Copper Mine, which continued operations for
283 years, and served as a basis of Sumitomo business.10
The key principal stages of the development of the Group are as follows11:
1897 Established Sumitomo Copper RollingWorks
1900s
Started production of silicon copper wires and power cables
Started test development of telecommunication cables
Established Sumitomo Electric Wire & Cable Works and started production of
enamel wires and the first Japan-made underground high-voltage cables
1917 Started operation of Sumitomo Wiring Systems, Ltd.
1920 Incorporated Sumitomo Electric Wire & Cable Works as a limited company
1930s
Started production of cemented carbide ("IGETALLOY") tools and special steel wires
Changed the company name to Sumitomo Electric Industries, Ltd.
1940s
Started production of rubber products
Started marketing sintered powder metal products
Entered into the business of construction of overhead transmission lines
1960s
Delivered wiring harness for four-wheel vehicles for the first time.
Entered into the business of traffic control systems
Started production of IRRAX TUBE, disc brakes, electron beam irradiated wires, and
flexible printed circuits (FPCs)
Established first overseas production facility, i.e. Siam Electric Industries Co., Ltd.
1970s
Started operations of Sumitomo Electric Sintered Alloy Ltd. in November 1972
Started production of compound semiconductors and optical fibre cables.
Delivered and put into operation the world's first bi-directional fibre optic CATV
system "Hi-OVIS".
1980s Delivered the fibre optic LAN system for the first time in the Group’s history
1990s
Developed a technology for producing long-length oxide high temperature super
conducting sires, and eco-friendly wires and cables.
Incorporated Sumitomo Electric Sintered Components (T) Co., Ltd. in Thailand in
November 1996
2003
Started operation of Sumiden Hitachi Cable Ltd. (wires and cables for buildings and
industrial equipment) and Sumitomo Electric Hardmetal Corp. (powder metal and
diamond products)
2004
Started operation of Eudina Devices Inc. (semiconductor devices)
A.L.M.T. Corp. was made a wholly-owned subsidiary
2007
Sumitomo Wiring Systems, Ltd. was made a wholly-owned subsidiary
Nissin Electric Co., Ltd. was made a consolidated subsidiary
2008
Opened the Technical Training Center
Started operation of Sumiden Friend, Ltd. (Special subsidiary)
2009
Eudyna Devices Inc. was made a wholly-owned subsidiary and changed its trade
name to Sumitomo Electric Device Innovations, Inc.
10 http://www.sumitomocorp.co.jp/english/company/history/index.html
11 http://global-sei.com/sei_info/history/index.html
Overview of Sumitomo Group
A.L.M.T. (Thailand) Co., Ltd. - Transfer pricing report
PwC 12
2.3. Overview of ALMT
ALMT was established through merger of Tokyo Tungsten Co., Ltd. and Osaka Diamond Industrial
Co., Ltd. in 2000. ALMT is the immediate parent company of the A.L.M.T. Group with a total of 2,315
employees (consolidated) as of 31 December 2013. Its registered head office is located at Sumitomo
Fudosan Shiba Building, 1-11-11, Shiba, Minato-ku, Tokyo 105-0014, Japan.
ALMT, as a member of Sumitomo Electric Group, is responsible for manufacture and sales of a wide
range of tungsten products, molybdenum product and heatspreader materials supporting the
electronics industry together with precision diamond tools and cBN tools for procession automotive
and electric parts.
Under the Group’s business model, ALMT operates as a holding company of the Group for the ease of
the management. In addition, since the Group’s products are required to use diamonds as the main
raw material, ALMT is also responsible for R&D on diamond used in the Group’s productions.
2.1.2. The Sumitomo Electric Group
Influenced by western technology and equipment in Meiji period (1868-1912), the Besshi Copper
Mine, which is the basis business of Sumitomo at that time, further increased its copper production
output. Additionally, it also entered into related businesses, in quick succession, such as the machine
and coal industries, electric cable manufacturing and forestry. At the same time, the finance business
developed into a banking business, coupled with the warehousing business, which was a part of this
banking business, became independent, and developed itself into a modern financial group. With the
dissolution of finance groups, other Sumitomo affiliated companies began to go their separate ways;
each company now plays an active part in their respective industry, and become independent from
each other.4
In 1897, after acquiring Nihon Seido Co., Ltd. for the purpose of entering the copper wire
manufacturing segment, the Sumitomo Copper Rolling Works was established to manufacture copper
wires (bare wires), copper plates, and copper rods. In 1911, the Sumitomo Electric Wire and Cable
Works was established and separated from the Sumitomo Copper Rolling Works, which then
incorporated and changed its name to the Sumitomo Electric Wire and Cable Works Ltd. and
Sumitomo Electric Industries Ltd., respectively.5
Sumitomo Electric Industries, Ltd. (hereinafter referred to as “SEI”), a Japan-based company,
engages in manufacturing and sales of electric wires and cables, and other products.
SEI is the ultimate parent company of the Sumitomo Electric Group (hereinafter referred to as “the
Group”). The Group includes 381 subsidiaries and affiliates in more than 40 countries around the
world6, mainly in Asia, North America, and Europe. Cooperation among such companies in providing
various kinds of services to the Group, such as R&D, engineering, manufacture, sales, administrative
3 http://ja.wikipedia.org/wiki/住友グループ
4 http://www.sumitomocorp.co.jp/english/company/history/index.html
5 http://global-sei.com/sei_info/history/index.html
6 http://global-sei.com/iv/annual/14/pdf/2014_all.pdf
Overview of Sumitomo Group
A.L.M.T. (Thailand) Co., Ltd. - Transfer pricing report
PwC 10
support, financing, and marketing, successfully builds the “Sumitomo” brand to be a leader in the
industry.
The Group consists of five business segments7, which are categorised by industry as follow: (1)
Automotive, (2) Infocommunications, (3) Electronics, (4) Environment and Energy, and (5) Industrial
Materials & Others. The diagram below shows the share of sales by each business segment.
Source: Sumitomo Electric Annual Report 20148
SEI was founded in April 1897 after separated from Sumitomo Copper Plant, which has business
relationship with Besshi Copper Mine (the main basis of Sumitomo business), to manufacture copper
wires (bare wires), copper plates, and copper rods. Later, the Company’s name was changed to
Sumitomo Electric Industries, Ltd. in 1939.
As of March 2014, on consolidated basis, SEI has Yen 2,159,942 million of net sales, and 206,323
employees.9
2.2. Sumitomo Electric Group History
The glorious path of the Sumitomo Group has been being developed continuously since its foundation.
As time goes by, business of “the House of Sumitomo” has been merged with and/or separated from
each other, leading to various independent groups and companies existing in the present. Hence, each
member under the Sumitomo Group shares the same long lasting history.
Historical milestones of Sumitomo Group started circa 1615 when Masatomo Sumitomo opened a
book and medicine shop in Kyoto. Around the same period, Riemon Soga, Masatomo's brother-in-law,
running a copper smelting and coppersmithing business in Kyoto since 1590 under the trade name
Izumiya, developed, with considerable effort, a copper smelting technology to extract silver from
crude copper.
7 http://global-sei.com/sei_info/org.html
8 http://global-sei.com/iv/annual/14/pdf/2014_all.pdf
9 http://global-sei.com/sei_info/outline.html
Automotive
51%
Infocommunicatio
ns
6%
Electronics
10%
Environment
and Energy
21%
Industrial
Materials &
Others
12%
Overview of Sumitomo Group
A.L.M.T. (Thailand) Co., Ltd. - Transfer pricing report
PwC 11
Tomomochi Sumitomo, the eldest son of Riemon and the son-in-law of Masatomo, extended the
business to Osaka, and disclosed such technology to other copper smelters. From his origins in the
copper trade, Tomomochi went on to become a trader under the name of Izumiya in thread, textiles,
sugar and medicines. In 1691, Izumiya opened Besshi Copper Mine, which continued operations for
283 years, and served as a basis of Sumitomo business.10
The key principal stages of the development of the Group are as follows11:
1897 Established Sumitomo Copper RollingWorks
1900s
Started production of silicon copper wires and power cables
Started test development of telecommunication cables
Established Sumitomo Electric Wire & Cable Works and started production of
enamel wires and the first Japan-made underground high-voltage cables
1917 Started operation of Sumitomo Wiring Systems, Ltd.
1920 Incorporated Sumitomo Electric Wire & Cable Works as a limited company
1930s
Started production of cemented carbide ("IGETALLOY") tools and special steel wires
Changed the company name to Sumitomo Electric Industries, Ltd.
1940s
Started production of rubber products
Started marketing sintered powder metal products
Entered into the business of construction of overhead transmission lines
1960s
Delivered wiring harness for four-wheel vehicles for the first time.
Entered into the business of traffic control systems
Started production of IRRAX TUBE, disc brakes, electron beam irradiated wires, and
flexible printed circuits (FPCs)
Established first overseas production facility, i.e. Siam Electric Industries Co., Ltd.
1970s
Started operations of Sumitomo Electric Sintered Alloy Ltd. in November 1972
Started production of compound semiconductors and optical fibre cables.
Delivered and put into operation the world's first bi-directional fibre optic CATV
system "Hi-OVIS".
1980s Delivered the fibre optic LAN system for the first time in the Group’s history
1990s
Developed a technology for producing long-length oxide high temperature super
conducting sires, and eco-friendly wires and cables.
Incorporated Sumitomo Electric Sintered Components (T) Co., Ltd. in Thailand in
November 1996
2003
Started operation of Sumiden Hitachi Cable Ltd. (wires and cables for buildings and
industrial equipment) and Sumitomo Electric Hardmetal Corp. (powder metal and
diamond products)
2004
Started operation of Eudina Devices Inc. (semiconductor devices)
A.L.M.T. Corp. was made a wholly-owned subsidiary
2007
Sumitomo Wiring Systems, Ltd. was made a wholly-owned subsidiary
Nissin Electric Co., Ltd. was made a consolidated subsidiary
2008
Opened the Technical Training Center
Started operation of Sumiden Friend, Ltd. (Special subsidiary)
2009
Eudyna Devices Inc. was made a wholly-owned subsidiary and changed its trade
name to Sumitomo Electric Device Innovations, Inc.
10 http://www.sumitomocorp.co.jp/english/company/history/index.html
11 http://global-sei.com/sei_info/history/index.html
Overview of Sumitomo Group
A.L.M.T. (Thailand) Co., Ltd. - Transfer pricing report
PwC 12
2.3. Overview of ALMT
ALMT was established through merger of Tokyo Tungsten Co., Ltd. and Osaka Diamond Industrial
Co., Ltd. in 2000. ALMT is the immediate parent company of the A.L.M.T. Group with a total of 2,315
employees (consolidated) as of 31 December 2013. Its registered head office is located at Sumitomo
Fudosan Shiba Building, 1-11-11, Shiba, Minato-ku, Tokyo 105-0014, Japan.
ALMT, as a member of Sumitomo Electric Group, is responsible for manufacture and sales of a wide
range of tungsten products, molybdenum product and heatspreader materials supporting the
electronics industry together with precision diamond tools and cBN tools for procession automotive
and electric parts.
Under the Group’s business model, ALMT operates as a holding company of the Group for the ease of
the management. In addition, since the Group’s products are required to use diamonds as the main
raw material, ALMT is also responsible for R&D on diamond used in the Group’s productions.
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