Sumitomo Electric Industries, Ltd. is planning to increase sales of its cutting tools in emerging markets with the establishment of new sales bases in Brazil, Indonesia and Turkey.
The company states that in Brazil an increasing number of parts processing companies, mainly in the automotive industry, have set up operations to meet growing local demand. Due to vast natural resources, Brazil has seen steady growth in steel and oil-related businesses as well as the aircraft industry. As a result, demand for cutting tools is increasing year by year. Until now, Sumitomo Electric’s cutting tools have been supplied to the Brazilian market by a sales company in the United States through local dealers. The new company, which is wholly owned by the Sumitomo Electric Group, will deal with carbide drills and cemented-carbide or cubic-boron nitride (CBN) indexable inserts.
In Indonesia the growth in local auto production has boosted demand for cutting tools. Sumitomo Electric will establish a new sales base in Indonesia by adding a new category of products to the business lines handled by the Sumitomo Electric Group’s sales company that has been operating in the country. As previously reported, Sumitomo Electric also plan to establish a new company that will manufacture cemented carbide drills, CBN and sintered diamond indexable inserts, and other cutting tools in Indonesia.
Turkey currently ranks sixth in Europe in auto production volume. In addition to the automotive industry, the aircraft industry has also flourished, producing engine parts for commercial aeroplanes and many other industrial products. As these key industries have grown, demand for cutting tools has also expanded. In order to satisfy the needs for short delivery time and attentive technical services, Sumitomo Electric is to establish a sales company in Turkey jointly with Milmak Metal Sanayi ve Ticaret Ltd. Sti., a local manufacturer of cutting tools.
Posted by: Paul Whittaker, Editor ipmd.net, [email protected]