On January 29, 2009, Japanese steelmaker Sumitomo Metal Industries, Ltd. (Sumitomo Metals) and Japanese company Yokogawa Bridge Holdings Corp. (YBHD), the leading company in the bridge business, passed a resolution to form a joint venture in the bridge business at their respective meetings of their Boards of Directors, and entered into a basic agreement with regard to forming a joint venture.
Within the scope of the agreement, the final contract is scheduled to be concluded on March 31, 2009. Sumitomo Metals will sell 60 percent of shares in its subsidiary Sumikin Bridge Co., Ltd. to YBHD on October 1, 2009 and make it a joint operating company. Its corporate name will be determined later. When the joint operating company commences operations, it will become a consolidated subsidiary of YBHD.
According to the press release issued by Sumitomo Metals, YBHD Group and Sumitomo Metals have reached the conclusion that they need to strengthen their bridge businesses, especially as Japan's Ministry of Land, Infrastructure and Transport and other orderers have started to adopt the comprehensive bidding evaluation system for public works in earnest.