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Afforestation and Woodchip Business
Plantation in South Africa
Sojitz has three operating companies in the afforestation business in vietnam and Australia, which operate plantationswith a total area of 20,000 hectares. The Company has three directly managed woodchip manufacturingsubsidiaries in vietnam, and also has long-term sales contracts for woodchips with leading Australian plantationwoodchip companies. Building this afforestation-manufacturing-sales supply chain structure has significantlyincreased the Company’s trading volume of woodchips for paper manufacturing. In addition, a new project isslated to commence during fiscal 2008 through which Sojitz will establish a resource company to purchase plantationsin South Africa, process the pulpwood from those plantations at a chip manufacturing company establishedat Maputo harbour in neighboring Mozambique, and export woodchips to Japan.
Nichimen Infinity Strives to Promote the McGregor Brand
A McGregor store (the Motomachi store in Yokohama)
Nichimen Infinity Inc. is an enduring comprehensive apparel firm that meets diverse market needs with a wide array of brands centering on American casual wear brand McGregor. Nichimen Infinity handles the menswear brand, vESvIO, and womenswear brand Brolly. Guided by the motto, “Coordinating fashion and activity to create and propose richer lifestyles,” Nichimen Infinity is now also targeting new possibilities, including the development of McGregor flagship stores.
Consumer Products and Industrial Materials Business
“TITAN” brand suitcases, sold at major specialist retailers throughout Japan
Sojitz General Merchandise Corporation (Sojitz GMC) links domestic and overseas manufacturers with marketsthrough combined functions centered on sales and marketing. It imports and sells high-value-addedconsumer products that create market needs, such as “TITAN” brand suitcases and the “Admiral” brand ofcasual footwear. In addition, the company exports industrial products, primarily motorcycle parts and tires,and conducts offshore transactions involving these products. It is also promoting environmental businesses,including devices to reduce CO2 emissions by preventing vehicle idling. Looking ahead, Sojitz GMC willendeavor to expand sales of products developed in-house and provide high-value-added products and services.
Nike Business
Shoes made by Nike Corporation
Since Nike began in 1972, Sojitz Corporation of America has supported a part of Nike’s global supply chainby providing significant import-export financing services for Nike’s overseas entities located in Asia andSouth America. Sojitz will continue working with Nike to improve service and take our 30-plus year relationshipto the next stage.
Cigarette Business
Philip Morris cigarettes imported into Japan
Sojitz has exclusive wholesale rights for imported cigarettes manufactured by Philip Morris, known for brands such as Marlboro, Lark, Philip Morris, Parliament, and virginia Slims. These products now account for approximately a 70% share of the Japanese imported cigarette market. As Philip Morris’ business partner, Sojitz will continue working to expand sales of these products.
Business Development in Eco-Friendly Non-Apparel Sectors
Products made by Lenzing AG, a manufacturer of eco-friendly cellulose materials
Sojitz is focusing on business expansion in non-apparel sectors based on eco-friendly cellulose materials aswell as components and products made from these materials. With environment, energy, and automotive asthe themes for future business fields, we are developing various industrial applications for a range of componentsand products made from materials based on plant-derived materials, high-tech non-woven fabrics,and high-strength super textiles.
Textiles Business
Nichimen Fashion: Product exhibition
Nichimen Fashion Co., Ltd., a fabric wholesaler, commenced selling organic cotton fabrics during the fiscal year under review. These fabrics use 30% to 100% organic cotton from the U.S., Turkey, and India (Indian cotton available from September 2008). The cotton is grown on land free of agrochemicals or chemical fertilizers for three years, and the company dyes it in one of three ways—plain, printed or yarn-dyed—prior to sale. These cottons are penetrating the market in the form of various eco-friendly textile products such as interior goods, apparel and lifestyle-related products.
Grain Business
Interflour Vietnam’s flour milling plant and adjoining port infrastructure
Sojitz handles about three million tons of wheat a year from Europe and other countries, in addition to the traditional wheat-exporting nations of the U.S., Canada, and Australia. In June 2007, Sojitz acquired 20% of the leading vietnamese flour milling company Interflour vietnam Ltd. The acquisition is aimed at constructing and expanding port infrastructure and building grain silos and warehouses, all centered on Interflour vietnam’s flour milling plant. Constructing efficient port infrastructure will reduce the import costs for wheat and other grains. In addition, the food-oriented industrial complex to be constructed on land abutting the port facility will contribute to the development of vietnam’s food industry.
Tuna Business
Tuna farming
Sojitz processes and markets frozen and fresh raw tuna with business partner TRY Inc., a wholesaler of tuna in Shizuoka City. Sojitz is developing diverse sources of raw material supply in line with customer needs, and is handling the import of farmed tuna from multiple suppliers in Australia and Mexico to assure a stable supply of high-quality products in Japan. In addition, to meet flourishing demand overseas, the Company operates the only Japanese deep frozen tuna processing and sales company in Dalian, China. Looking ahead, Sojitz is also planning to establish a domestic tuna farming company to secure more marine product resources within Japan.
Sojitz Foods Corporation
Sojitz delivers products and services that address the demands of the retail distribution industry.
As a global food distribution company, Sojitz Foods develops products that respond accurately to customerneeds. It then uses its domestic network—consisting of domestic branches and logistics capabilities—tomarket the products nationwide. Products marketed in this way are various types of processed products(especially private brand products), groceries, and raw materials such as sugar, etc. In addition, Sojitz Foodsis developing a third-party logistics business. During the year under review, Sojitz Foods experienced a problemwith some of its frozen food products, which caused serious illness. As a result, the company has furtherimproved its quality control systems, and is focusing on ensuring the safety and reliability of the foods itdelivers, making this central to the conduct of its business.
Livestock Business
Cattle put out to graze in Tasmania
Nissho Iwai Meat and Agri-Products Corporation comprises a group of experts specializing in livestock andgarden products businesses, and provides safe and reliable products. Its operations are supported by itsspecialization and network, as well as by the relationships of trust it has built up over many years with producersand manufacturers. The company has built an integrated system covering the whole process fromproduction and purchasing, through to processing and distribution. Products range from meat and processedmeat products, such as beef, pork, and chicken, to livestock such as cattle and horses, feed such as pasture,and gardening products such as seeds, seedlings, and cut flowers.
Overseas Distribution Business
Inside the Vietnamese distribution center
Sojitz is developing a distribution and wholesale business in the Asian foods market, which is experiencing dramatic growth. In China, we have established a comprehensive food wholesale company (Beijing Sanyuan Sojitz Foods & Logistics Co., Ltd.), which has a distribution center with three temperature zones, and it has built a distribution network that comprises more than 2,000 large-scale retail stores, restaurants, and other facilities. Similarly, in vietnam, we have invested in the food wholesaler huong Thuy Manufacture Service Trading Corporation. Using a distribution center with three temperature zones as a base, it is selling foods nationwide to more than 20,000 companies, including supermarkets.
