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Sumitomo Heavy Industries aims to provide valuable products and services to satisfy our client's needs. To this end, the Company engages in procurement activities based on the following basic policies:
- We aim to establish a mutually beneficial relationship with vendors that are price competitive in the global marketplace.
- We aim to establish an optimal global procurement system by forming relationships with vendors from around the world.
- The Company's applies the following standards when selecting vendors:
- Price competitive, and displays the capacity to achieve continuous cost reductions, quality improvements, performance, reliability, technological development, and VE proposal abilities.
- Capacity to provide a stable supply of products in compliance with deadlines.
- Maintenance and aftercare service
- Management stability
Vendors will be selected based on economic feasibility after considering the above points.
- In general, vital materials will be procured from multiple vendors through the Procurement Department, which has the final say on transaction decisions.
- In accordance with the relevant laws and societal norms, no confidential information obtained from a transaction with a vendor will be disclosed to a third party.
- The Company will make efforts to consider the security of the environment during its procurement of materials.
The SHI Group's Basic Policy on Conflict Minerals Mined in the Democratic Republic of Congo and Adjoining Countries
In the Democratic Republic of Congo, armed groups are forcing local residents to mine tin, tungsten, tantalum and gold (hereinafter referred to as "Conflict Minerals") and are using the mined minerals to fund their activities. Moreover, the systematic violence against local residents is gaining international attention and condemnation.
As part of Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that was enacted in July 2010, the Securities and Exchange Commission (SEC) on August 22, 2012 adopted the "Rule for Disclosing the Use of Conflict Minerals". As a result, any SEC regulated company is required to submit a report on the use of Conflict Minerals in their products to SEC on an annual basis.
As part of SHI's commitment to global social responsibilities, SHI has made it a policy not to become involved in the procurement of Conflict Minerals. In accordance with this policy, SHI is in the process of deliberating and implementing systems and measures to ensure that these objectives are met. Furthermore, our trading partners will be informed of this policy and be required to support this global initiative.