On June 27, Japanese steelmaker Sumitomo Metal Industries, Ltd (Sumitomo Metals) announced that it will acquire the US-based Steel Wheel Acquisition Corporation (SWAC), the parent company of Standard Steel, Inc. (Standard Steel).
The acquisition of SWAC is being implemented as part of Sumitomo Metals' strategy to expand into overseas growth markets with overseas production bases and concurrently to continue to strengthen its core domestic manufacturing bases. After this acquisition, Sumitomo Metals plans to raise its presence in North America and then to expand into Europe, Asia, and other areas.
Following the completion of the acquisition, Sumitomo Metals plans to transfer certain technology to Standard Steel to enhance its global competitiveness in the manufacture and sale of railway wheels. Moreover, both companies aim to enhance their customer services. The presence of manufacturing bases on both sides of the Pacific will also make Sumitomo Metals more diversified and more reliable as a supplier to customers, even in the case of crises.
Standard Steel is one of North America's leading manufacturers of railway wheels and axles with a history of over 200 years. Sumitomo Metals is one of the world's top manufacturers of railway wheels and axles, with a strong focus on the Japanese market.