Business Restructuring of TBC Corporation

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; President and CEO: Masayuki Hyodo), jointly operates TBC Corporation, (hereinafter “TBC”) a U.S. based tire distribution company, with Compagnie Générale des Établissements Michelin (Head Office: Clermont-Ferrand, France; hereinafter “Michelin”). TBC has reached an agreement to divest its company-owned retail portfolio to Mavis Tire Express Service Corp. (Head Office: New York, United States), a tire retailer in the United States. In connection with the transaction, TBC will transfer 595 retail locations to Mavis and will also provide wholesale and tire distribution for Mavis. 

TBC distributes tires and provides automotive repair and maintenance services in the U.S., Mexico, and Canada through its wholesale, company-owned retail, and franchise businesses. Among its businesses, TBC identifies wholesale business, boasting an industry-leading warehouse network and scale, and franchise business with a national store footprint, as core businesses. By divesting retail portfolio and focusing on wholesale business operation, TBC will further improve its profitability by concentrating management resources to core businesses and streamlining its organization. Investment will be made toward supply chain optimization, digital innovation, and human capital, and new business pillars will be developed, such as advanced tire logistics services (Supply Chain as a Service) which leverage its robust network. 

Sumitomo Corporation will continue, through its partnership with Michelin, to create the foundation for comfortable and exciting lifestyles for residents and contribute to the development of the mobility society and other industries in the North American region.

Sumitomo Corporation’s Material Issues

Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to the following material Issues.

Achieving Harmony with the Global Environment

To realize recycling-oriented society and mitigate climate change, we are working to establish frameworks for the efficient use of resources and stable supply of renewable energy. In doing so, we will achieve growth in harmony with the global environment.

Contributing to the Development of Local Communities and Industries

We steadily procure and provide goods and services to meet the needs of people in various countries and regions and contribute to developing industrial platforms. Through these means, we will create a virtuous cycle in which we can grow and develop together with local communities.

Establishing a Foundation for Comfortable and Enriching Lifestyles

We strive to realize more convenient and comfortable lifestyles by providing goods and services for daily use while also responding to needs for high-quality lifestyles in order to support the physical and mental health of people around the world.

Providing Diverse “Accessibility”

We provide diverse accessibility to open up the possibility of creating new value. To this end, we will improve mobility for safe and efficient flow of people and goods, and expand the network connecting information and finance.

Developing Human Resources and Promoting Diversity

In order to create new value and innovation by allowing our diverse personnel to fully exercise their abilities in a variety of fields, we will promote the development and empowerment of human resources, which represent our most important management resources.

Enhancing Governance

We will enhance our ability to draft and implement strategies for achieving sustainable growth and to provide appropriate supervision of these strategies, all while maintaining transparency. In this manner, we will improve management efficiency and maintain sound management.