Sumitomo Corporation integrates its 2 Stainless Steel Distribution Companies

Sumitomo Corporation announced on Thursday it would integrate Summit Stainless Steel (SSS) and DMC, the subsidiaries of stainless steel distribution on April 1. SSS and DMC are US’s No. 1 and 3 stainless strip steel distributors respectively. According to Sumitomo, the annual sales of SSS of the surviving company will exceed US$100 million; the market share will be close to 50%. SSS is the master distributor of stainless strip steel, steel tubing, and joiunt products. SSS was established after Sumitomo and Sumitomo Corporation of America took over KG Specialty Steel which had been wholly-owned sub-subsidiary by Kanematsu Corporation. The capital of SSS is US$20 million; the investment ratio is 50% for Summit Stainless Steel Holding and Sumitomo Corporation of America per each. SSS expects merger effect through restructuring such as cost reductions and reinforcement of purchase power. Its business bases are supposed to be in New Jersey, Chicago, Huston, Atlanta, Charlotte, and Los Angels.