For Immediate Release
August 29, 2025
Sumitomo Forestry Co., Ltd. GEOLIVE Group Corporation
Sumitomo Forestry and GEOLIVE Group Corporation Conclude Capital and Business Alliance Agreement
~ Leveraging the strengths of both companies to achieve a solid earnings base ~
Sumitomo Forestry Co., Ltd. (President and Representative Director: Toshiro Mitsuyoshi; headquarters: Chiyoda-ku, Tokyo; hereinafter, Sumitomo Forestry) and GEOLIVE Group Corporation (President and Representative Director: Hiroshi Ueki, headquarters: Minato-ku, Tokyo; hereinafter, GEOLIVE Group) concluded a capital and business alliance agreement on August 29 with a view to enhancing the corporate value of both companies and realizing sustainable growth for the timber and building materials distribution industry. Sumitomo Forestry will acquire all shares of Veneer Shokai Co., Ltd. (hereinafter, Veneer Shokai), which holds a 27.19% stake in GEOLIVE Group, thereby increasing its total stake to 30.3% including its existing 3.11% shareholdings. As a result, GEOLIVE Group will become an equity-method affiliate of Sumitomo Forestry. To strengthen its exteriors construction and sash businesses as well as expand its business areas, GEOLIVE Group will acquire all shares of Sumitomo Forestry's subsidiaries in the building material distribution sector, namely Igeto Co., Ltd., Sumirin Sash Co., Ltd. (hereinafter, Sumirin Sash), Sumirin Sash’s wholly owned subsidiary, Sumikyo Co., Ltd., and Sumikyo Wintec Co., Ltd.
In order to adapt to changes in the market environment surrounding the timber and building materials distribution industry and accelerate business development, the two companies will collaborate across the boundaries of their respective business categories as a trading company and a wholesaler, strengthening and expanding the respective businesses that serve as their strengths to achieve a solid earnings base.
- Market conditions surrounding the timber and building materials distribution industry
The domestic housing market is expected to see a drop in the number of new housing starts due to the declining population, with an aging population and falling birthrates. Moreover, the environment surrounding the market is undergoing significant changes, including an increasingly severe shortage of workers due to the aging of skilled craftsmen and succession issues in construction companies, the need to adapt to legal reforms aimed at achieving a decarbonized society, and growing demand for high-quality housing stock. In light of these challenges and evolving market environment, the timber and building materials distribution industry is expected to face intensified competition in securing market share through the enhancement of functions such as logistics, processing, and construction.
- Purpose of the capital and business alliance
Sumitomo Forestry and GEOLIVE Group aim to leverage their respective strengths to build a solid earnings base. Sumitomo Forestry will expand its domestic and international timber and building materials manufacturing and distribution businesses, as well as promote the utilization of domestic timber through its timber industrial complex business. GEOLIVE Group will harness its wide-area logistics, processing, and construction capabilities, integrating the four building materials distribution subsidiaries of Sumitomo Forestry into its group to complement operations in the Central and Western Japan region and strengthen functions such as the supply of exterior materials and sashes, as well as construction services, to drive business growth. Furthermore, both companies will provide solutions such as DX-enabled quotation and delivery services, and structural framework supply systems, to enhance overall productivity in the building materials distribution industry.
- Details of the business alliance
Streamlining logistics and various operations through DX promotion
Establishing structural framework supply systems and promoting greater construction efficiency
Promoting decarbonized design, utilization of decarbonized materials, and effective utilization of domestic timber
Developing new markets and expanding sales of original products
Sumitomo Forestry and GEOLIVE Group are considering a business alliance based on the following themes. Going forward, the two companies will integrate their respective functions and expertise to promote business, eliminate the boundaries between trading companies and wholesalers, and build a unique, one-stop supply chain and a solid earnings base.
Sumitomo Forestry Group is engaged in a broad range of global businesses centered on wood, including forestry management, the manufacture and distribution of timber and building materials, the contracting of single-family homes and medium- to large-scale wooden buildings, real estate development, and wood biomass power generation. In its long-term vision Mission TREEING 2030, it seeks to promote the Sumitomo Forestry Wood Cycle, its value chain to contribute to the decarbonization for not only its own company but also the whole of society by increasing the CO2 absorption of forests and popularizing wooden buildings that store carbon for long periods of time. By promoting the use of wood and wood-derived materials in construction and the substitution of wood for other materials, it is also working to accelerate decarbonization.
GEOLIVE Group operates a business centered on building materials distribution in Japan, focusing on expanding sales of energy-related products such as solar power generation systems, as well as certified timber, thereby strengthening its efforts toward a decarbonized society. It is also promoting the development of a building contractor support system tailored to high-performance residential construction, as well as enhancing construction capabilities in non-residential sectors through M&A, with a view to accelerating new business expansion beyond the boundaries of traditional building materials distribution.
- Company profiles
Sumitomo Forestry Co., Ltd.
Name Headquarters Representative Established Capital
Business description
Website
: Sumitomo Forestry Co., Ltd.
: 3-2, Otemachi 1-chome, Chiyoda-ku, Tokyo
: President and Representative Director, Toshiro Mitsuyoshi
: February 20, 1948
: 55,101 million yen
: Timber and Building Materials Business, Housing Business, Global Construction and Real Estate Business, Environment and Resources Business, Lifestyle Services Business, etc.
: https://sfc.jp/english/
GEOLIVE Group Corporation
Name Headquarters Representative Established Capital
Business description Website
: GEOLIVE Group Corporation
: 6-3-4, Shimbashi, Minato-ku, Tokyo
: President and Representative Director, Hiroshi Ueki
: October 1, 2009
: 850 million yen
: Purchasing and sales of plywood, building materials, housing equipment, etc.
: https://www.geolive.co.jp/english/
Igeto Co., Ltd.
Name Headquarters Representative Established Capital
Business description
: Igeto Co., Ltd.
: 1-15 Juichiya, Minato-ku, Nagoya City, Aichi Prefecture
: President and Representative Director, Takashi Okada
: April 3, 1950
: 150 million yen
: Housing-related materials wholesale business, etc.
Sumirin Sash Co., Ltd. Name Headquarters Representative Established
Capital
Business description
: Sumirin Sash Co., Ltd.
: 1650-38 Okubara-cho, Ushiku City, Ibaraki Prefecture
: President and Representative Director, Shinichiro Sato
: December 8, 1981
: 50 million yen
: Processing and sale, supply, and delivery of aluminum sash for residential use, etc.
Sumikyo Co., Ltd. Name Headquarters Representative Established Capital
Business description
: Sumikyo Co., Ltd.
: 4-22-25 Shima, Ibaraki City, Osaka
: President and Representative Director, Toru Minagoshi
: October 1, 1971
: 20 million yen
: Assembly, processing, installation and sale of aluminum sashes for buildings, etc.
Sumikyo Wintec Co., Ltd. Name
Headquarters Representative Established Capital
Business description
: Sumikyo Wintec Co., Ltd.
: 763-2 Ouchida, Kita-ku, Okayama City, Okayama Prefecture
: President and Representative Director, Masaki Suwabe
: August 19, 1976
: 22 million yen
: Construction and sale of sashes for houses and buildings, exterior products, and exterior materials, etc.