Expansion Strategy Sumitomo Acquires Sulfuric Acid Distribution and Transportation Service Firm

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Sumitomo Corporation has taken over Saconix, a firm which is engaged in the distribution and transportation service of sulfuric acid in the US West and Gulf. With this move, the company will increase its worldwide sulfuric acid storage capacity to about 330,000 tons and increase its trading volume to about 3.5 million tons of sulfuric acid annually.

Tokyo/Japan – Sumitomo Corporation through Sumitomo Corporation of Americas has completed the acquisition of Saconix from U.S. private equity fund, Copperbeck Energy Partners to make Saconix a wholly owned subsidiary of the Sumitomo Corporation Group. Saconix is engaged in the distribution and transportation service of sulfuric acid in the US West and Gulf.

Sulfuric acid is one of the world’s most used chemical in a variety of industries including agriculture, manufacturing, mining and textiles, making it an indispensable commodity for many of the goods and services we rely on in daily life. Its use in the mining of copper, lithium, rare-earth etc. is expected to drive its demand in line with the global shift toward decarbonization. As food demand rises to meet the needs of a growing worldwide population, its use in agriculture and fertilizer production is likewise anticipated to expand. Sulfuric acid is thus steadily growing in importance as a commodity.

Saconix has tangible distribution facilities, including storage tanks and transloading facilities at several sites in the US West and Gulf, and provides with local distribution and logistics services. The company thus has a business model with a very high affinity for that of the Sumitomo Corporation Group’s sulfuric acid business. The firm will therefore strive to provide further added value through the generation of synergetic effects between the two businesses.

By making Saconix its wholly owned subsidiary, the Sumitomo Corporation Group will acquire new logistics bases in the western part of the U.S. and the Gulf Coast region, boost its worldwide sulfuric acid storage capacity to 19 tanks, or about 330,000 tons (including lease assets), and increase its trading volume to about 3.5 million tons of sulfuric acid per year, or around 20 % of all seaborne trading volumes. This transaction will thus consolidate the Sumitomo Corporation Group’s position as a leader in the sulfuric acid industry.

The Sumitomo Corporation Group will continue to pursue synergies between the sulfuric acid trading business and the tank terminal business to promote the stable supply of sulfuric acid, a chemical that contributes to decarbonization and sustainable food production.

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