Sumitomo Chemical has finalized an agreement to divest all of its shares in two of its flat panel display (FPD) process chemical subsidiaries in China to Zhenjiang Runjing High Purity Chemical Technology (aka Runjing Tech). The transaction is set to be completed by the end of May this year.
Sumika Electronic Materials (Hefei), based in Hefei, Anhui Province, China, and Sumika Electronic Materials (Chongqing), located in Chongqing, China, are both engaged in the manufacturing and sales of FPD process chemicals. Established in 2009 and 2014 respectively, these entities have been fully owned by Sumitomo Chemical and its subsidiaries, including Dongwoo Fine-Chem in Korea, and Sumitomo Chemical (China). The acquirer, Runjing Tech, based in Zhenjiang, Jiangsu Province, China, was founded in 2008 and specializes in the production and sale of electronic chemicals, organic electrolytes, and fine chemicals as part of Shandong Haike Holding, a conglomerate that also includes Shandong Haike Holding, established in 2014, focusing on petrochemical energy and special chemicals.
The restructuring process at Sumitomo is part of its ongoing efforts to move the focus of the company onto more profitable areas of its business. Runjing Tech will inherit technology and distribution to customers of Sumitomo Chemical in China, and be able to expand its product line of etchants, strippers, and CF developers. The locations of Sumitomo’s subsidiaries is considered to provide strategic positioning in Chongqing and Hefei for rapid response to local display manufacturers.
