Plant & Industrial Machinery Division Strategies and Initiatives
Industry Environment and Fiscal 2010 Results
Contracts Awarded on the Basis of Comprehensive Strength
Fiscal 2009 saw a sense of stagnation permeate the industry. In contrast, fiscal 2010 brought signs of a gradual rebound in the market environment that grew stronger over the second half of the year. The increase in inquiries and promising projects was most striking in the markets of emerging economies. Ultimately, the impression for the year was of preparation for a leap forward in fiscal 2011.
In plant and transportation projects, we further consolidated our comprehensive strength by linking our accumulated market/product knowledge and finance arrangement skills, and collaborating with in-house commodity divisions. We were awarded a number of new project contracts, including paper and pulp production facilities in China and Asia, and rehabilitation of a textile plant in Africa. Business performance also improved steadily at our railcar leasing operating companies in the United States and Australia, and we increased the division’s prime business assets in both countries.
In industrial machinery, we recorded sharp growth in photovoltaic cell manufacturing facilities mainly to Japan and in hydraulic components to China. Sales of textile machinery to China and Asia were also firm. Elsewhere, we worked to strengthen our structure for business expansion, including by establishing a new sales company for general-purpose machine tools.
In environmental projects, we worked on greenhouse gas reduction projects, including the CDM (Clean Development Mechanism) and JI (Joint Implementation) program. Marubeni ranks among the top general trading companies in terms of reducing the total volume of emissions it generates. We also focused on new businesses, including the start of forest conservation initiatives in developing countries, to prepare for the post-Kyoto framework that will emerge from 2013.
As a result, in fiscal 2010, segment gross trading profit totaled ¥24.4 billion, and segment net income amounted to ¥3.2 billion.
Initiatives in Fiscal 2011
Enhancing Functions for Customers
In fiscal 2011 we will expect active developments in new projects. The division will need to respond to progressively more complex geopolitical, environmental and energy issues, capital markets, and diversifying customer needs. For each project, we will strive to offer the best solutions to customer needs. To do this, we will enhance not only our market knowledge and EPC expertise, but also our skill at integrating in-house functions, such as the supply of raw materials, product marketing, and finance arrangement, as well as our risk management capabilities.
In oil, gas, chemicals, steelmaking, cement, paper and pulp, textiles, and other industrial plant and transportation projects, we will focus on consolidating functions for essential solutions in order to expand business transactions.
In industrial and production machinery and machine tools, we will work to increase existing trade volume. In the business investment area, we will take on PPP (Public Private Partnership) projects and the ocean business, and accumulate more prime business assets, in addition to existing investments in natural resources, railcar leasing and other areas.
In environmental projects, greenhouse gas reduction continues to be a worldwide concern, and new rules are widely anticipated. Marubeni will engage in emissions credit trading, an area where it ranks in the top tier among general trading companies, and distribute photovoltaic generation facility-related equipment, a business sector that is steadily growing. In tandem, we plan to extend our efforts in environmental projects, a wide-ranging field covering global warming countermeasures, biotechnology and energy efficiency-related projects.
