SUMIDA: Investor News

Announcement of Issuing New Shares

5 April 2013

This information is an English-translated summary of an announcement made in Japan on April 5th, 2013 by Sumida Corporation regarding funding by issuance of 3,500,000 new shares and secondary offering of 500,000 shares of common stock of Sumida Corporation. However, this does not constitute an offer to sell any securities outside of Japan.

Purpose of this Funding
Currently, Sumida is in the second year of the mid-term business plan (2012-2014), undertaking the various challenges for further growth, one of which is to improve cost competitiveness through increased production capacity. In pursuit of this challenge, Sumida has decided to finance the capital expenditures by issuance of new shares. With this equity finance we will be able to make strategic capital investments in our production facilities mentioned below as well as to enhance our financial strength.

  1. Increasing production capacity in satellite plants in China where production needs for automotive products are on the rise in addition to traditional consumer electronics products.
  2. Expanding a plant in Mexico supplying to customers in the NAFTA area where demand for automotive products have been increasing.
  3. Making a capital investment in the production facilities in Thailand for mass-production of RFID products which we have been carrying out a study on.
  4. Making R&D expenditures to develop a modularization technology for power inductors in order to accommodate speedy production needs demanded by our customers in the U.S.

Sumida will continue to work hard on maximizing the interests of stockholders and other stakeholders through the enhancement of corporate value, by executing challenges under the mid-term plan (2012-2014), total cost reduction and maximazation of earnings by every possible effort.

Please click on the press release link above to view a pdf version of this item.