Jan. 06, 2014
Establishment of an Agricultural Chemical Sales Company in the Republic of Chile
The South American agricultural chemical market is sized at approximately 10 billion US dollars, accounting for about one fifth of the entire global market for agricultural chemicals. In the South American agrichemical market, the Chilean market totals 210 million US dollars, the fourth largest after Brazilian, Argentine, and Columbian markets, and is experiencing stable growth. Agricultural chemicals for fruit cultivation account for 50% of all agricultural chemicals sold in Chile, and most of the fruits produced in the country are exported to the United States and Europe. Against this backdrop, Japanese manufacturers enjoy a competitive edge in Chile, thanks to their extensive lineup of agricultural chemicals that are tailored to fruits and crops destined for Western countries.
Since advancing into Chile’s agricultural chemical market in 2010, Sumitomo Corporation has steadily expanded its business there. SACH will mainly target fruit and vegetable growers, including wine grape growers, in promoting its specialty agricultural chemicals (herbicides, pesticides, germicides, etc.) produced by Japanese manufacturers, and plant growth regulators produced by local manufacturers. Furthermore, SACH will promote the introduction and development of new agricultural chemicals by harnessing the knowhow and human resources fostered around the world by the Sumitomo Corporation Group, while striving to enhance customer service by expanding its product portfolio. SACH will aim at achieving net sales of 20 million dollars within five years.
Sumitomo Corporation commenced full-fledged agricultural chemical business in the 1970s when it began exporting agricultural chemicals produced by Japanese manufacturers. Its current strategy is to further develop its business in downstream sectors in the value chain. Importing and supplying agricultural chemicals to over 30 countries around the world, mainly in the West, the Company boasts an extensive business engagement that covers over 90% of the entire agricultural chemical market worldwide. Focus is also being placed on expanding its scope of business through the acquisition of agricultural material distributor in Eastern Europe, among other activities. Thus, Sumitomo Corporation is steadily strengthening its earnings base and scale in this arena.
In the South American Andes region, a focal area of Sumitomo Corporation’s agricultural chemical business, SACH was established as the third agricultural chemical sales company after Iharabras (Sumitomo Corporation’s equity share: 22%) in Brazil and Summit Agro Argentina (Sumitomo Corporation’s equity share: 100%) in Argentina. With the addition of SACH, Sumitomo Corporation will further aim to strengthen its earnings base in the Andes, with an eye to establishing additional agricultural chemical sales companies in this fast-growing region.
|Company name||：||Summit Agro Chile SpA.|
|Location of Head Office||：||Santiago, Republic of Chile|
|Equity stake ratio||：||Sumitomo Corporation Group: 100%|
|President and Director||：||Shinnosuke Ono|
|Number of employees||：||10|
|Major line of business||：||Sales of agricultural chemicals and materials in Chile|
■Sumitomo Corporation Group’s Global Agricultural Chemicals Marketing Network
Spraying of agricultural chemicals
Grapes to be exported to Western countries
Corporate Communications Department,