Takeda-Sumitomo chemical venture

Sumitomo Chemical Co. and Takeda Chemical Industries Ltd. said Thursday they will launch a joint venture Nov. 1 by taking over Takeda’s agrochemical business.

The two firms said the joint venture, Sumitomo Chemical Takeda Agro Co., will be capitalized at 9.38 billion yen and owned 60 percent by Sumitomo Chemical and 40 percent by Takeda. The original deal was reached July 31.

After five years, the venture will probably be terminated and integrated into Sumitomo Chemical’s agrochemical business, they said in a statement.

The new company aims to bolster its presence in the domestic agrochemical market by using Takeda’s strong marketing power, while expanding overseas operations through Sumitomo Chemical’s sales network, they said.

Headquartered in Tokyo, the venture will be staffed with 280 employees with combined consolidated sales of 36 billion yen, based on the two firms’ earnings results for the business year that ended in March.