Opening Ceremony of New Plant in Brazil

November 24, 2011

An opening ceremony was held at the new plant established in the State of Sao Paulo, Brazil, on November 22, 2011. The opening ceremony was received very warmly by the local community with participation by the Sao Paulo State Governor Geraldo Alckimin and the Itu City Mayor Herculano Passos Junior. In addition to government officials at the ceremony, which ended with great success, Sumitomo Heavy Industries, Ltd. (SHI) was represented by President Yoshinobu Nakamura and Vice President Shinji Nishimura.

The gear reducers that will be produced at the new plant had, in the past, been produced at three locations in Japan, as well as three in China, one in Vietnam, one in Germany and one in the United States. SHI supplies its gear reducers to customers in various nations around the world. The medium to large size gear reducers, planned to be produced at the new plant in Brazil, are widely used for various cranes, cement and coal milling facilities, power generating facilities and elevators. Amongst other factors, Brazil is expecting an increase in infrastructural investment due to the impact of the upcoming World Cup and Olympic Games resulting in an increase demand for resources such as iron ore.

A local subsidiary corporation has been established in order to maintain a stable supply of products, and expand sales. Having a local presence will help SHI to increase its business within Brazil and the South American region. Sales in 2015 are projected to reach 5 billion yen.

Summary of plant
[Corporate name]
Sumitomo Industrias Pesadas do Brasil Ltda.

State of Sao Paulo, Federal Republic of Brazil.
Rodovia do Acucar (SP-075) Km 26, in the city of Itu, São Paulo, Brazil.

Mateus C. Botelhos.

[Description of business]
Manufacturing and sales of medium to large size gear reducers in Brazil and South American region.

[Establishment date]
July 28, 2010

[Area of plant site]

Manufacturing plant area:11,200m2 building area: 2,400m2

[Total amount of investment]
130 million reais (Approx. 6.3 billion yen)

[Production capacity]
200 units per month

New Plant in Brazil