Sumitomo Metal Industries Ltd (Sumitomo Metals) and Chuo Denki Kogyo Co. Ltd (CDK) have agreed to strengthen the Sumitomo Metals Group’s secondary battery business by consolidating related business to CDK. The two companies will strengthen their capital relationship and integrate their human resources and technologies that are indispensable to improving the performance of secondary batteries. Through these measures, the Group aims to expand its secondary battery material business in which growth is expected for automobiles and other applications. Sumitomo Metals’ secondary battery material businesses will be succeeded by CDK. Sumitomo Metals will then receive 4,000,000 new common shares of CDK as consideration for the businesses. Sumitomo Metals’ shareholding ratio of CDK will increase from 29.29% to 38.24%. CDK will consolidate and integrate the secondary battery material business of the Sumitomo Metals Group, by succeeding Sumitomo Metals’ graphite business and making Sumikin Molycorp Inc. (Sumikin Molycorp) a wholly-owned subsidiary. The date of integration is planned for 1 December 2009.
