Sumitomo Forestry Co. said Wednesday its two subsidiaries in Australia will acquire Dominance Industries Pty Ltd., a fiberboard manufacturer in Australia.
The acquisition, expected to be completed Nov. 29 after approval by the Australian government, will enhance Sumitomo Forestry's position as the top manufacturer of medium-density fiberboard in the pan-Pacific area, the company said in a news release.
Sumitomo Forestry will invest some 5.8 billion yen in the new acquisition, with Dominance Industries becoming an affiliate of Sumirin Holdings Pty Ltd. and Sumirin Investments Pty Ltd., each owned 50 percent by Sumitomo Forestry, it said.
The acquisition will allow Sumitomo Forestry to produce more than 500,000 cu. meters of medium-density fiberboard per year by combining output from Dominance Industries and Nelson Pine Industries Ltd., a wholly owned subsidiary in New Zealand of Sumitomo Forestry.
The company said the acquisition will have only a limited impact on its earnings for the business year to next March 31.