Sumitomo Metals Acquires Railway Brake Business from Sumitomo Electric and Sumitomo (SEI) Brake Systems

On June 30, 2008, Sumitomo Metal Industries, Ltd. (Sumitomo Metals) reached an agreement with Sumitomo Electric Industries, Ltd. (Sumitomo Electric) and Sumitomo (SEI) Brake Systems, Inc. to acquire their railway brake business on September 1, 2008.
In the railway vehicle industry, the demand of improvement in the speed shows a rise and new style-type vehicles are developed in recent years. The development of highly efficient brake equipment that meets demand for improved speed has been indispensable to parts manufacturers.
Sumitomo Metals conducts development and design of railway products, such as bogie trucks, wheel sets, and brake discs, however, the Company aims to provide technical proposals to its customers along with its existing railway products as a whole brake equipment by acquiring this business.
The Company will provide new technical proposals and contribute to society through its railway assets, which are in the limelight now from the viewpoint of reducing CO2 emissions (i.e., climate change prevention).

1.Outline of business to be acquired
The development, design, manufacturing, sale, and other business related to brake equipment for railway and associated parts.

2.Objectives of acquisition
This acquisition enables Sumitomo Metals to internally develop and manufacture brake equipment for railway. The Company aims to strengthen and expand its existing railway-related business, specifically the manufacturing and sale of bogie trucks, wheel sets, and brake discs.

Reference:
(1)Outline of the Companies, whose Business Units are to be Acquired by Sumitomo Metals

(2)The construction drawing of the whole brake equipment*

* One set of brake equipment is comprised of a caliper, brake discs, and friction pads.