Sumitomo Bakelite Makes Tsutsunaka Plastics Wholly Owned Subsidiary
Sumitomo0 Bakelite, which already owns some 51% of Tsutsunaka Plastics, will buy its remaining shares and make it a wholly owned subsidiary. Tsutsunaka has been under pressure because of high energy costs; in the March 2006 year, ordinary income was down by half to 1,085 million yen. Sumitomo intends to absorb Tsutsunaka operations by March 2007. By combining activities, Sumitomo aims to cut indirect expenses, rationalize distribution costs, and improve technology and marketing operations. 日経