Merger with Totsu Co., LTD.
In April 1966, Marubeni merged with Totsu Co., LTD., which was a trading company specializing in metals and one of sales agents of Nippon Kokan K.K. (now NKK) (merger was registered June 1). Marubeni-Iida succeeded to the employees and commercial supremacy of that company.
Totsu Co., LTD. was founded in 1918 as Asano Bussan Co., LTD., a trading company that handled 65% of Japan's crude oil imports before World War II. After the war some operations were spun off from Asano Bussan Co., LTD. to establish Asahi Bussan Co., LTD., and then in 1961 the two companies remerged to form Tokyo Tsusho Kaisha, LTD. and later on the company's name was changed to Totsu Co., LTD. Before merging with Marubeni-Iida, the company had sales of approximately ¥200 billion, 65% of which were accounted for by metals-related operations, and approximately 1,600 employees.
The merger with Totsu created a close relationship between Marubeni-Iida and Nippon Kokan and strengthened Marubeni-Iida's previously weak metals division such that in 1966 the sales of the metals division were double that before the merger and rivaled those of the textiles division. The sales ratio of heavy and chemical industry products, such as metals, machinery, and chemicals, now accounted for more than 50% of Marubeni-Iida's sales.
Accompanying the merger, Marubeni-Iida undertook a major organizational restructuring and implemented a two headquarters system consisting of the exiting Osaka Headquarters and making the Tokyo branch the Tokyo Headquarters. In addition, most of the administrative departments were moved to the Tokyo Headquarters, so essentially the Tokyo Headquarters became the center of the Company.
During the second half of the 1960s Japan's real economic growth exceeded 10% to enter a true high-growth period. At this time, the country's industrial output, such as steel and automobiles, increased rapidly, which created the issue of procuring raw materials to meet this growing demand.
In response to this, Marubeni-Iida began developing a variety of businesses that are now the core of the company, such as importing iron ore from Australia and raw coal from Canada; constructing a pulp plant in Canada; operating salt fields in Australia; forming a textile joint venture in Thailand; establishing an automobile sales company in Belgium; and constructing a steel distribution processing center, grain silos, chemical tanks, and high-rise condominiums in Japan.
Since the merger with Iida Co., LTD. in 1955, Marubeni-Iida has had a close relationship with Fuji Bank, and the desire to increase mutual cooperation among companies, the main bank of each of them is Fuji Bank, lead to the formation in 1960 of Fuyo Development Co.,LTD. (now Fuyo General Development and Finance Co.,LTD.), a developer company, with 17 other companies including the Fuji Bank, Ltd., Nippon Kokan K.K., Showa Denko Co., Ltd., and Taisei Corporation. In 1966 the Fuyo Conference consisting of the presidents of Fuyo group companies was started, and then in 1968 Fuyo Air Services Co.,LTD. and 1969 Fuyo General Lease Co.,LTD. were established by member companies including Marubeni-Iida.
