Sumitomo Electric Industries is to acquire Keystone Powdered Metal Company, a US manufacturer of powdered metal components.

The agreement will be entered into between Keystone, Sumitomo Electric USA Holdings Inc. (SEUHO), a US 100% subsidiary of Sumitomo Electricm and a special purpose corporation to be established by SEUHO. SEUHO will acquire 100% stock of Keystone through the merger between Keystone (merging company) and the special purpose corporation. The acquisition is scheduled to be completed by the end of September.

The powdered metal components business of the Sumitomo Electric Group has expanded globally from its beginnings as Sumitomo Electric Sintered Alloy Ltd and supplies a variety of products primarily to Japanese manufacturers of cars, air conditioners, and automotive components. ‘This acquisition will enable us to expand sales networks for US car manufacturers as well as auto-parts manufacturers, enhance our presence in the US, and capture further business opportunities,’ the company said in a press release.

This story is reprinted from material from Sumitomowith editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.