Our Corporate Communications staff spend time getting to know Sumitomo Corporation's different business sites around the world, reporting on how the people at those sites work. We will keep you up to date with the world of Sumitomo Corporation, which extends to every corner of the globe.
Tsuyoshi Asada
Corporate Communications Department
Joined Sumitomo Corporation in 2002. Started his career at Sumitomo in the Planning & Administration Dept., Transportation & Construction Systems Business Unit. After building experience in managing risks associated with existing and prospective projects undertaken by various divisions under his department, i.e., the Automotive, Construction & Mining System, and Ship, Aerospace & Transportation Systems Divisions, he was transferred to the Ship & Marine Project Department in 2005 to realize his longtime wish to experience quintessential field work of a trading company. He has acquired basic sales skills through shipment transactions for Japanese ship owners. In July 2010, he became a member of the Corporate Communication Dept., in charge of media relations for the Infrastructure Business Unit and Transportation & Construction System Business Unit. Born in Hyogo Prefecture, he likes to spend weekends playing with his two daughters and occasionally playing American Football.
Servilamina Summit Mexicana, S.A. de C.V.
A 100% subsidiary of Sumitomo Corporation established in 1993 as a steel service center. With two manufacturing plants, one in Querétaro City on the Central Mexican Plateau and the other in Monterrey City close to the US-Mexico border, SSM’s current annual production capacity amounts to 140,000 tons. Capitalizing on its close ties with major steel producers around the world and its business track record in Mexico, SSM supplies steel on a stable and ongoing basis to automobile and related manufacturers as well as home appliance makers.
Hirotec Mexico, S.A.de C.V.
An automobile exterior parts manufacturer established in 1998 by Hirotec Corporation and Sumitomo Corporation, which respectively hold 51% and 49% equity stakes. Hirotec Mexico mass-produces mainly vehicle doors and hoods at its two plants, in Silao and Ramos, and sells them to General Motors, Chrysler, and Japanese automakers. Based on one of the highest levels of production efficiency and quality control in North and Central America, Hirotec Mexico maintains strong relationships of trust with automakers that operate plants in Mexico.
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In Salamanca in the Mexican state of Guanajuato, roughly in the middle of the Central Mexican Plateau, a groundbreaking ceremony was held for the construction of a new automobile and engine assembly plant to be jointly established by Mazda Motor Corporation and Sumitomo Corporation. I was there to attend the ceremony. The plant is scheduled to be completed in 2013, and to commence shipment of Mazda2 (Mazda Demio in Japan) and Mazda3 (Mazda Axela in Japan) models from around 2014, targeting mainly the North and South American markets.
Groundbreaking ceremony for the new plant. Mazda’s Representative Director and Chairman of the Board, President and CEO Takashi Yamanouchi, is second from the left and Kazuo Ohmori, Executive Vice President of Sumitomo Corporation, is second from the right.
Having concluded Free Trade Agreements (FTAs) and Economic Partnership Agreements (EPAs) with 44 countries around the world, Mexico has access to a worldwide market of some 30 million new cars a year. Mexico, therefore, has enormous potential as a base for automobile production and export.
Sumitomo Corporation’s involvement with Mexico goes back more than 50 years. Focusing mainly on the manufacturing of vehicle parts, the Company has also been engaged in a wide range of businesses that meet local needs in a timely manner, including metal processing, water treatment, and agrochemicals marketing.
To produce automobiles in Mexico with Mazda, Sumitomo Corporation will draw on the wide-ranging management know-how acquired through its business activities in the country, with a particular focus on its expertise in human resources development, tax and labor affairs, logistics, and IT infrastructure. The Company boasts itself as being a top-flight Integrated Trading Company in the automobile business, encompassing upstream parts manufacturing and downstream auto dealing, leasing, and financing. Yet embarking on automobile production is an adventure into uncharted territory and a challenging dream to pursue.
On the day of the ceremony, we were blessed with sunny weather in sharp contrast to the heavy downpour the day before. The ceremony was a tremendous success, symbolizing our first step toward achieving our aspiration. Behind the bright smiles of our staff, I could sense their strong determination and commitment to leading the business to success.
Steel sheets are orderly stacked at the worksite.
Suppressing my desire to watch Lucha Libre (professional wrestling) since I had come all the way to Mexico, I took myself to the beautiful city of Querétaro, the central part of which is a registered World Heritage site. I paid a visit to Servilamina Summit Mexicana (SSM), a steel service center that operates a plant here.
The business environment surrounding SSM has changed drastically in recent years, resulting in the company’s sales to the automobile industry increasing from just over 40% of total sales in 2004 to nearly 70% in 2010. Demand for steel sheets is growing significantly, reflecting high demand not only from automakers expanding into Mexico, but also from the auto parts manufacturers that followed suit. Steel sheets imported from the United States, Europe, and Asia are transported into the steel service center from major Mexican ports by rail twice a week, and a continuous line of large trucks is always waiting to deliver the steel sheets, which is no wonder, considering that steel sheet demand in the Central Mexican Plateau is projected to climb by half a million tons by 2015.
SSM’s competitive strength lies in its rigorous quality control and customer trust. Meanwhile, for automakers setting up new plants, SSM’s plant is conveniently located to provide efficient logistics. Steel sheet demand, however, is susceptible to change due to various factors including the economic climate, trends in customers’ industries, changes in product composition, etc. The steel business, therefore, is not free from risks. Sumitomo Corporation’s steel service centers boast top-tier steel business operations and expertise on a global basis. “By leveraging Sumitomo Corporation’s experience in operating its steel service centers, SSM will further streamline its corporate operations, increasingly enhance its competitiveness, and achieve business growth,” stressed Hironori Aoki, an employee seconded to SSM.
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