Oct. 03, 2013
Investment in an Iraqi Automotive Service/Sales /Company
First Japanese Company to Invest in Private Business following the Iraq War
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura) has purchased about 320 million yen in shares (equivalent to 45% of shares) of SAS Automotive Services Ltd (hereinafter, “SAS”), a subsidiary of Iraq’s largest automotive business, the Sardar Group (Head Office: Baghdad, Republic of Iraq; CEO: Sardar Hassan) through a third-party allocation of shares. This is the first private investment and joint venture by a Japanese company in the country following the end of the Iraq War.
Following the investment in SAS, Sumitomo Corporation will launch bases, which engages in maintenance and
repair of Toyota cars, and sales of cars and spare parts, in key areas in Iraq.
Specifically, Sumitomo Corporation will launch new service station in Sulaymaniyah in the Kurdistan Regional Government and another one in Baghdad in Central Government this month besides existing stations in Dohuk and Erbil. It will then open another one in Basra in the south by the end of this fiscal year. Sumitomo Corporation is also planning to open service stations in Mosul and Kirkuk in stages.
Iraq has a population of 32 million and the fourth largest crude oil reserves in the world. Because of its high potential, the country is expected to exhibit rapid economic growth. In 1966, Sumitomo Corporation established an office in Baghdad, where it has since operated wide-ranging businesses, primarily in the areas of automobiles, construction equipment, steel, and communications equipment. The office has a steady sales record, having shipped about 290,000 Toyota cars and 10,000 Hino trucks, as well as more than 30,000 units of construction equipment
to the present.
The Gulf War that broke out in 1991 forced Sumitomo Corporation to temporarily withdraw from the country, leading it to dispatch dedicated personnel to Jordan, which neighbors Iraq, in and after 2003 when the large-scale fighting ended. In 2009 Sumitomo Corporation re-opened its Baghdad Office, becoming the first Japanese company to do so following the Iraq War. In April 2013, it dispatched resident employee to Erbil, which has a good public safety record and is undergoing dramatic economic development. Sumitomo Corporation has also established a base in Basra in the south where oil resources are abundant. With these footholds, Sumitomo Corporation will continue to operate steel, automobile, construction equipment, infrastructure and other businesses.
Through SAS, Sumitomo Corporation provides not only Japanese-standard vehicle maintenance and repair services
but also high-quality Japanese brand products to develop the safe auto environment surrounding Toyota cars. Meanwhile, SAS is planning to establish an in-house training center to provide training for new Toyota engineers. Sumitomo Corporation strives/endeavors to create local employment and providing training, including improving the skills of Iraqi engineers, will create vitality in the post-war reconstruction of the country, while simultaneously making social contributions in Iraq.
|Outline of SAS Automotive Services Ltd after the third-party allocation of shares|
|Company name||:||SAS Automotive Services Co., Ltd.|
|Location||:||Baghdad, Republic of Iraq|
|Capital||:||About 720 million yen|
|Ownership ratio||:||Sardar Group 55%, Sumitomo Corporation 45%|
|Main business||:||Car maintenance and repairs of Toyota cars, sales of repair parts, sales of cars|
|Remarks||:||Has obtained certification from Toyota Motor Corporation as TOYOTA AUTHORIZED SERVICE STATION(TASS).|
Toyota Authorized Service Station of SAS
Corporate Communications Department,