Issue 11/2022 - Sumitomo Chemical announces its withdrawal from the dye business

Sumitomo Chemical announced its withdrawal from the dye business

On May 19, Sumitomo Chemica I announced its decision to close the dye production facility at its Osaka plant and withdraw from the dye business
by the end of March 2023.

Nippon Dye Manufacturing Corporation was founded in 1916 to produce synthetic dyes, and merged with Sumitomo Chemical in 1944 to become Sumitomo Chemical's Osaka factory
.
At present, the Osaka plant has developed into the core of Sumitomo Chemical's fine chemical product manufacturing, producing photoresists
, pesticides, dyes, and polymer additives.

In the face of the increasingly severe dyestuff market environment, Sumitomo Chemical has been making efforts to carry out structural reforms in its business, such as increasing the added value of its products, optimizing its product line, and reducing costs
across the board.
However, as production equipment ages, maintenance and repair costs increase
year by year.
Sumitomo Chemical decided to withdraw
from the dye business despite various reform measures, but could not generate profits from the dye business stably in the medium to long term.

Sumitomo Chemical said that it will continue to invest resources in areas where the company has a competitive advantage, and strive to achieve sustainable growth
by creating new value.