Plant, Ship & Industrial Machinery Division Strategies and Initiatives
Industry Environment and Fiscal 2008 Results
In terms of key policies for fiscal 2008, ended March 31, 2009, we focused on expanding and strengthening transactions for EPC and newly built ships, and accelerated our participation in investment businesses in every sector to build up a portfolio of quality assets. However, the economic circumstances drastically changed as a result of the global financial crisis that started in the second half of 2008, and certain projects are delayed or under review.
Under these conditions, the division enhanced its comprehensive business capabilities by leveraging its extensive expertise and experience in the markets, products and structured financing, and cooperation with commodity-related departments of the Marubeni Group. In plant, transport and industrial machinery projects and in the ship field, where we remain highly competitive, we expanded EPC projects, as well as the newly built ships trade. Also, we pursued investment projects in related business fields by implementing careful selection to expand and enhance our earnings power.
In the EPC field, we worked to smoothly execute existing contracts and focused on winning orders for new projects. Consequently, the division won orders for two alumina smelting plant projects in Vietnam, an airport project in the Ukraine, and a dry dock project in Qatar. In the ship sector, while increasing orders for newly built ships, we expanded our chartering operations by boosting our own fleet of ships.
In the investment business field, we invested in the APA Group’s gas and power business in Australia, and in a maintenance service company for steel mills in U.S.A. Also, we further increased the portfolio of lease assets for our freight railcar leasing operations in the United States.
In the environment sector, we continued to develop CDM, Joint Implementation (JI), and other greenhouse gas emissions reduction projects, and increased the division’s sales record for the solar energy field, mainly for solar cell modules in European markets.
As a result, in fiscal 2008, segment gross trading profit totaled 25.2 billion yen, and segment net income amounted to 7.1 billion yen on a consolidated basis.
Initiatives in Fiscal 2009
It appears that it will take some time to improve these challenging business conditions caused by the global financial crisis. In the meantime, we will build on our achievements thus far and consolidate our position for the next stage by using our comprehensive functions and services to meet the latest needs and leveraging alliances with new strategic partners.
In existing EPC and trading fields, we will retain our focus on expanding transactions in sectors where we enjoy advantages, including plants for steel, paper and pulp, cement, and petrochemicals, transport projects, and ships.
In the on-site services at steel mills, midstream oil and gas industry businesses, freight railcar leasing, and ship chartering sectors that we have been focusing on, we will increase our quality asset portfolio through our strict standard of selection.
Finally, in the environment field, we are accelerating realization of the project under development, as well as making every effort to establish and launch new environmental businesses.
