Europe

Euro zone countries posted average economic growth of 2.7% in 2006, or 2.9% on a 25 EU member state basis. Buoyed by healthy consumption and investment, this was a significant improvement on the previous fiscal year. Of the 10 Central and Eastern European members admitted in 2004, more than half continued to record high annual growth rates of 6% or more, a telling indicator of the economic dynamism of this region.

Under the “G” PLAN, enhancing initiatives in Central and Eastern Europe is a key priority. Accordingly, Marubeni Europe remains active in the trade of polyester/cotton blends for automotive and furniture upholstery, the delivery and installation of equipment for Japanese automotive firms expanding into Eastern Europe and its other operations in the region. We fully expect to win repeat orders based on our proven track record.

Future regional strategies also call for increased activities in Russia west of the Urals and the Ukraine, a region that, in economic terms, is expected to become more closely tied to Europe. Besides the commodities trade, Marubeni Europe plans to take an active role in the construction of highways and other projects on a Public Private Partnership (PPP) basis, together with its partners. In fiscal 2006, a Marubeni-led consortium won a contract to build the second stage of an undersea rail tunnel beneath Turkey’s Bosporus Straits linking Asia and Europe. Marubeni is also participating in a number of infrastructure projects through its investment and development operations.

In line with its product strategy, Marubeni Europe is building a reputation for identifying niche high value-added plastics-related products as well as brands in niche fields. In the photographic film business, one of its strengths in Russia, Marubeni is looking to further expand its market share through a newly established trimming plant for professional quality print paper.

There are more than 20 Marubeni Group companies in the European region. These firms cover a broad range of industrial fields, from transportation and industrial machinery, information and communications, infrastructure and utilities to fine chemicals, forest products and general merchandise, and finance and insurance. Utilizing this expansion, Marubeni is enhancing local capabilities while creating a structure that showcases the comprehensive capabilities and strengths of the Group.

Following a seven-year hiatus, Marubeni again accepted students from France’s Ecole Nationale d’Administration (ENA), as part of its human resource exchange program in Europe. The program includes a variety of seminars at Marubeni’s Head Office in Tokyo, along with tours of major Japanese manufacturers. Through these experiences, Marubeni hopes students will gain a better understanding of Marubeni’s activities and Japanese culture and society.

ENA is among France’s elite learning institutions and has produced some of the country’s most prominent political, financial and administrative figures. Through this human resource exchange program, Marubeni is proud to contribute to even friendlier relations between Japan and France.