Sumitomo Corporation Boosts U.S. Aviation Position with Full Acquisition of Warner-Aero

According to a report by Nikkei on Tuesday, Sumitomo Corporation is strengthening its position in the U.S. aviation parts market.

The company plans to increase its stake in Warner-Aero, its U.S. subsidiary, to 100% by the end of 2024, effectively making it a wholly-owned subsidiary. Industry insiders estimate the additional investment could amount to several billion yen.

This strategic decision comes amid a global surge in air travel demand, which has led to aircraft shortages. Sumitomo Corporation aims to capitalize on this trend by expanding its presence in the used aircraft parts business.

In 2022, Sumitomo Corporation acquired a 51% stake in Warner-Aero, integrating it as a consolidated subsidiary. Unlike traditional parts traders, Warner-Aero specializes in purchasing retired aircraft for dismantling and maintenance operations, positioning itself as a leader in the sector.

Coinciding with the full acquisition, Warner-Aero has undergone a leadership change. Toshinobu Kondo, formerly a senior vice president seconded by Sumitomo Corporation, has been appointed CEO, succeeding the company’s founder.

Sumitomo Corporation has set an ambitious goal to increase its net profit from 13.6 billion yen ($86 million) in March 2024 to approximately 33 billion yen ($209 million) by March 2031, leveraging growth opportunities in the aviation market.