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The Energy & Mineral Resources Division is made up of two business units the Energy Unit and the Mineral Resources Unit. For both units, "from upstream through to downstream" is the key phrase guiding the development of business networks encompassing everything from investments and loans in upstream resource interests, to mid- and downstream distribution operations.
The Energy Unit is pursuing "multifaceted energy businesses" underpinned by oil & gas development, production, sales and trading, but extending to power generation and nuclear fuel operations.
The Mineral Resources Unit trades in a variety of metal and mineral resources such as coal, ferroalloys, iron ore, nonferrous metals, and precious metals. Sojitz' strength lies in the ability to draw synergies from investment in mineral resource concessions, both to secure access to resources and for related distribution and retail businesses.
In addition to these existing businesses, last year, we established the Energy & Mineral Resources Business Development Office to assist in cultivating future energy businesses. To this end, the office is involved in the development of businesses pertaining to biofuels, carbon dioxide emissions credits, and technologies for more efficient coal use, among other tasks.
Other important areas for the division are the LNG business and steel operations, which we take part in through Group companies. And while business results have benefited from booming resource demand in recent years, the division's objective remains the pursuit of growth that is sustainable from a long-term perspective.
Under the New Stage 2008 medium-term management plan, the key issue for the division will be the transformation of its earnings structure. We will accomplish this through upstream business investment that can take advantage of our downstream distribution businesses. Actions in this vein will serve as the basis for conducting sales activities vigorously in each division business segment.
Going forward, the division's challenge is to establish a resource and energy value chain that rests on three actions: promote investments and loans that are balanced in terms of the commodity, the region, and the time frame; reinforce efforts to achieve stable commercial rights, particularly in distribution; and generate new businesses based on innovative concepts.
We view overseas markets as vital to the division's medium- to long-term growth. For this reason, we have identified India, Vietnam and other countries in Asia, as well as African nations, Brazil, Australia and China as key markets. In these countries, we intend to accelerate business development in ways that maintain and strengthen relationships cultivated with strategic partners over the years. In our energy business we are planning to accumulate more upstream resource interests with a focus on maintaining a balance between oil and gas, and spreading our interests between regions. In the mineral resources business we will supplement our efforts to obtain additional assets including coal, molybdenum, vanadium and nickel with efforts to identify new business opportunities in iron ore, copper, and other rare metals.
Ties with Group companies will be critical to establishing a value chain in energy and mineral resources. Sojitz is largely responsible for the upstream development of oil, gas and other resources, as well as investments and loans in coal, metal and mineral resources. Group companies, meanwhile, head up mid- and downstream operations involving the distribution, sales and trade of energy-related commodities, steel and nonferrous products, precious metals and more. They are also responsible for promoting related businesses. Going forward, we will strengthen downstream businesses through companies such as Sojitz Energy Corporation, which sells petroleum products; Ject Corporation, which handles carbon products; and e-Energy Corporation, which sells nuclear power-related equipment. We will also strengthen our cooperation with Metal One Corporation and LNG Japan Corporation as a means of maximizing group profits.
