Yokogawa Bridge Holdings Corp. (YBHD) and Sumitomo Metal Industries Ltd (Sumitomo Metals) has recently decided to form a joint venture in bridge business at their respective meetings of the Board of Directors and entered into a basic agreement with regard to forming a joint venture. YBHD Group and Sumitomo Metals have reached the conclusion that they need to strengthen their bridge businesses: YBHD Group’s comprehensive technology and sales force will be combined with Sumitomo Metals’ high productivity and strong product development capability through the formation of a joint venture between the two companies. YBHD will hold a 60% stake in the joint venture company, which will then participate in the YBHD Group. The bridge business of YBHD Group, which will be bigger in scale, is expected to benefit from enhanced negotiating power relating to procurement and cost reduction. According to the basic agreement, a final contract is scheduled to be concluded on 31 March 2009. Sumitomo Metals will carry out an absorption-type company split of its bridge business and this business will be succeeded by its fully-owned subsidiary, Sumikin Bridge Center Co. Ltd, on 1 July 2009. The latter plans to change its corporate name to Sumikin Bridge Co. Ltd, Sumitomo Metals will sell 60% of the shares outstanding of Sumikin Bridge Co. Ltd to YBHD on 1 October 2009 and make it a joint operating company. Its corporate name from 1 October 2009 will be determined later.
