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Tragedy in Japan - The Impact on Our Business

March 15, 2011



Subject:  Striking of Tohoku Pacific Coast Earthquake and its impact on Our Business.


The Sumitomo family extends its' deepest sympathies to all of those in Japan who have been affected by the recent earthquake and tsunami.

We are relieved to report that all Sumitomo Heavy Industries’ (SHI) employees have been accounted for and are safe.  Our North American headquarters has begun collecting donations to help our relief efforts in Japan. In addition, we are exploring other ways to help our colleagues who are in need of basic necessities such as food, batteries, etc.

Since the earthquake and tsunami took place, our management team in Japan has been working hard to provide an accurate and detailed assessment of our production facilities and equipment.  We are very happy to communicate that all SHI production facilities are structurally sound and only a few received minor damage.

Manufacturing facilities for our products are located in the Chubu district (Middle part of Honshu island) and Chugoku district (Western part of Honshu island).  The earthquake and tsunami occurred in the Tohoku and Kanto districts (Northeastern part of Honshu island), and therefore have not affected the production of our products.  Our manufacturing facilities use ports out of Nagoya, Osaka and Kobe, and so far we do not have any problems exporting.

We have communicated with all of our subcontractors and there are not any major production problems.  We will closely monitor a few subcontractors that are located in the affected Tohoko district related to scheduled blackouts (these blackouts are not scheduled in the districts where our facilities are located).    We will keep everyone informed if this situation changes.

I want to also thank all of our employees, direct customers, distributors and neighboring businesses that have extended offerings of concern and help. We are completely overwhelmed by all of the well wishes and support that we have received. Your communications and thoughts have been sent to our headquarters in Japan and they wanted to ensure that I send their extreme gratitude.


Sincerely,

Ronald J. Smith
President and CEO
Sumitomo Machinery Corp. of America

 

Districts in Japan


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