Business

Sumitomo to buy car parts maker

Sumitomo Corp. said Monday it will acquire auto parts manufacturer Kiriu Corp. from Unison Capital Inc. in July.

Unison Capital, an independent investment fund, owns a 95 percent stake in Kiriu, based in Ashikaga, Tochigi Prefecture. Under a deal whose amount was undisclosed, Sumitomo will buy all of the shareholdings.

With its customer base encompassing most Japanese carmakers, Kiriu, founded in 1906, is the industry’s second-largest brake disk producer.

Sumitomo wants to strengthen its automobile business by buying Kiriu, industry analysts say. The trading house’s auto business currently focuses on dealerships and loan financing.

Kiriu, which was earlier affiliated with Nissan Motor Co., was once listed on the second section of the Tokyo Stock Exchange. But Unison Capital, which bought Kiriu in 2001, delisted the company and restructured it by revamping product lines and business partners as well as consolidating production sites.

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