Japan Chemical Trading Blog
Resource Business Caused Loss to Sumitomo Corporation
On September 29, Sumitomo Corporation announced, “in addition to the impairment loss of JPY 170 billion (Approx USD 1 billion and 7 hundred million) in the US shale oil development project, the losses of the Australian coal project (JPY 30 billion (Approx USD 3 hundred million)), Brazil iron ore project (JPY 50 billion (Approx USD 5 hundred million)), the US tire project (JPY 20 billion (Approx USD 2 hundred million)) make the total of JPY 270 billion (Approx USD 2 billion and 7 hundred million) loss in this period”.
Traditionally the company’s area of expertise has laid in the non-resource business, while the resource business was dominated by Mitsubishi Corporation and Mitsui & Co., who were early movers to acquire resource rights.
Is this a significant loss because of Sumitomo Corporation’s hasty foray into an unfamiliar field?
The focus from now on is if the company will add any further impairment loss.