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Machinery Division : Major Business Activities

Manufacture and Sales of Isuzu Trucks in Russia

New factory opening ceremony before the start of mass production
New factory opening ceremony before the start of mass production

In conjunction with Isuzu Motors Limited and the local partner OAO Sollers (formerly Severstal-Auto), Sojitz has established a joint-venture company for the purpose of manufacturing and wholesaling light- to heavyduty Isuzu trucks in Russia. This joint venture will first start mass-producing light-duty trucks at a new factory in August 2008. This is the first move by a Japanese manufacturer to produce trucks on a full scale in Russia. The new factory is located in Elabuga, in the Republic of Tatarstan, a distance of 1,000 km from Moscow. The joint venture is projecting annual production on a scale of 25,000 vehicles within three years.

Hyundai Vehicle Assembly and Wholesale Business in Thailand

Opening ceremony in Bangkok
Opening ceremony in Bangkok

In a joint venture with local investors, in June 2007, Sojitz established Hyundai Motor (Thailand) Co., Ltd. to assemble and sell South Korea’s Hyundai vehicles. The company entered full-scale operation in October. In Thailand, Sojitz leveraged the experience gained in assembly and wholesaling of Hyundai vehicles through affiliated companies in Venezuela and Argentina. Using its achievements in Thailand as a foothold, the Company aims to expand the automobile business in the Asian region, which is recording remarkable growth.

Rolling Stock Projects Brisk in the U.S.

Artist’s rendering of passenger rail cars ordered
Artist’s rendering of passenger rail cars ordered

U.S. subsidiary Sojitz Corporation of America and Hyundai Rotem Company, a railway rolling stock manufacturer in South Korea’s Hyundai Motor Group, jointly received an order to supply 75 double-decker rail cars for passenger use from the Massachusetts Bay Transportation Authority (MBTA) in Boston in April 2008. An optional contract for an additional 75 rail cars is attached to this project, which means that it could result in a large order for a maximum of 150 rail cars. The Sojitz Group has received orders in the U.S. rolling stock market since 1978, and cumulative orders amount to more than 1,000 rail cars. Major business discussions are also planned in locations such as New Jersey and Washington.

Automotive Logistics Services Business in Mexico

U.S.-based Autrans Corporation – plant already in operation
U.S.-based Autrans Corporation – plant already in operation

In June 2007, the Sojitz Group established Autrans Mexico, S.A.P.I. close to Nissan Mexicana’s Aguascalientes plant, and it is slated to start operating in autumn 2008. The company’s automotive logistics services business aims to provide various logistics services (such as distribution, assembly, and product inspection) to fulfill automobile manufacturers’ needs for cost reduction measures. The Sojitz Group is already in the process of expanding the business in the U.S. and Thailand, and plans to expand it in China and elsewhere.

Worldwide Development of High-Value-Added Plant Business

Cogeneration system in Indonesia
Cogeneration system in Indonesia

Sojitz is leveraging its regionally specialized capabilities and the global network it has cultivated centered on key industries plants such as steel and infrastructure, power, fertilizer (chemicals) and environment related plants. This will enable the Company to combine functions such as EPC (Engineering Procurement and Construction) and equipment supply, business investment, finance, and raw materials procurement, promoting high-value-added plant businesses and projects.

Global Development of Electronic Component SMT Equipment and Related Businesses

Fuji Machine SMT equipment
Fuji Machine SMT equipment

Sojitz is developing its sales and service subsidiaries in China, Southeast Asia, Brazil and India specializing in SMT equipment produced by Fuji Machine Mfg. Co., Ltd., which boasts the world’s leading share of industrial robots used for semiconductor mounting. Through these subsidiaries, Sojitz offers related sales and service mainly to clients in the PC, mobile phone, automotive, and semiconductor fields. In addition, Sojitz is eyeing investment in businesses engaged in the development and manufacture of related products as it takes steps to expand its scope of operations. At the same time, Sojitz aims to build a value chain that supplies components (kits) to clients and also handles products in order to become a total solutions provider in the SMT equipment industry.

New Business Model in Growing Telecommunication Field

Telecommunication tower and telecommunication network equipmen
Telecommunication tower and telecommunication network equipmen

Sojitz is making the most of its overseas network to develop its upstream telecommunication infrastructure equipment sales business targeting markets in India, Southeast Asia, and Japan. Going forward, Sojitz will expand its scope of operations by promoting business investment in the telecommunication network maintenance and service sectors in each of these key markets. We also plan to expand the telecommunication equipment sales business we are developing in the Americas to the Asian and BRICs markets, and build a global equipment sales network, while establishing a business model that generates mutual synergies in upstream and downstream operations.

Sojitz Machinery Corporation Advocates Environmental Management

Infrared rotary drum enables quick drying and boasts a compact design
Infrared rotary drum enables quick drying and boasts a compact design

In light of the worsening situation with regard to global warming and depleted resources, Sojitz Machinery Corporation is advocating environmental management throughout its businesses. Based on the concept of preserving the global environment, the company will constantly develop and propose production line manufacturing equipment that is simple, slim, and compact, and supply equipment with low energy consumption. These measures will lead to an increase in the company’s competitiveness and drive its growth while contributing to cost reductions, cuts in CO2 emissions, and higher productivity at client companies in a wide range of industrial fields, including automobiles, steel and nonferrous metals, chemicals, and semiconductors.

The Boeing Company/Bombardier Inc.

Boeing 787 Dreamliner manufactured by Boeing
Boeing 787 Dreamliner manufactured by Boeing

For approximately 50 years, Sojitz has worked closely with The Boeing Company in the sale of Boeing commercial airplanes. The Boeing aircraft handled by the division have captured an 85%-plus share of the respective Japanese market. The B787, a new aircraft incorporating the latest in Boeing technology, has entered the service fleets of two prominent Japanese airlines-All Nippon Airways and Japan Airlines. Meanwhile, in the field of regional aircraft, we will vigorously promote sales of Bombardier Inc.’s Dash 8 series (turboprop) and CRJ series (small jet) to the Japanese airlines and Dash 8 based Maritime Patrol Aircraft (“MPA”) to the Japan Coast Guard. Business

Business Jet Related Business

Global Express XRS, ultra long range performance, manufactured by Bombardier
Global Express XRS, ultra long range performance, manufactured by Bombardier

Sojitz sells a full range of Boeing and Bombardier business jets exclusively in Japan. Further, in conjunction with Aviation Concepts, which has a U.S. air operating certificate for on-demand charter flights, Sojitz has actively provided aircraft acquisition service, charter flights, maintenance and management services throughout the Asian region. The business jet market is rapidly growing and attracting lots of attention. Sojitz will expand the business by getting into the newly developed market.

Sojitz Marine & Engineering Corporation

Ultra-large, assembly-type crankshaft for low-speed, diesel propulsion machinery used in ships, manufactured by Kobe Steel
Ultra-large, assembly-type crankshaft for low-speed, diesel propulsion machinery used in ships, manufactured by Kobe Steel

Sojitz Marine & Engineering has businesses with collective strengths covering every aspect of the shipping and shipbuilding industries to provide solutions to customer needs. These businesses range from the sale and purchase of newly built and second-hand ships, long-term chartering, ship management and construction supervision, to main propulsion engines, special equipment for LNG carriers, and sales of cast and forged iron products and shipbuilding equipment. In fiscal 2007, the company introduced an Australianmade high-speed aluminum catamaran ferry, one of the world’s largest, and achieved success in a strategic initiative involving cast and forged products manufactured by Kobe Steel, Ltd.

The Ship-Owning Business

“TORM SALTHOLM” (83,000-tonne bulk carrier), a Sojitz-owned ship completed in May 2008
“TORM SALTHOLM” (83,000-tonne bulk carrier), a Sojitz-owned ship completed in May 2008

For over 40 years Sojitz has continued to operate its ship-owning business, focused on highly versatile smalland medium-sized bulk carriers. Besides the mutually complementary relationship and synergies with the business development of Sojitz Marine & Engineering-such as the accumulation and sharing of information and know-how-this business is enhancing its presence as one of the pillars of the marine business. In fiscal 2008, two newly built vessels are scheduled to join the fleet, and we are steadily upgrading the fleet with a focus on five and ten years ahead.

Information Services Business

The group takes a global perspective in creating IT service businesses
The group takes a global perspective in creating IT service businesses

The IT Business Group is focusing on the growth potential of SaaS (software as a service)/ASP (application service provider) business, a business model that provides software as a service through the Internet. It is introducing new technologies from countries with advanced IT markets, especially the U.S., and deepening alliances with domestic and overseas partners. In doing so, its aim is to build an information services business leveraging Sojitz’s strengths as a general trading company from a global perspective. In the IT offshore business, the group is striving to reinforce its IT functions as it extends IT operations outsourcing to overseas companies in India and China-which offer growth potential as well as in Vietnam, where Sojitz is strongly positioned.

Enterprise Solutions Business

HP BladeSystem, a next-generation blade server
HP BladeSystem, a next-generation blade server

Nissho Electronics Corporation provides a wide range of IT solutions and services to the manufacturing and distribution industries. These include IT platform construction solutions ranging from the provision of leading- edge IT equipment and the design and construction of systems to the operation and maintenance of such systems. Via its partner companies, Nissho Electronics supplies everything from software to hardware appliances. In addition, the company provides highly specialized application systems leveraging the company’s system construction experience and business knowledge related to the finance and information service industries cultivated over many years.

 

Telecommunication Carrier Solutions Business

Juniper T-series of high-speed Internet backbone routers
Juniper T-series of high-speed Internet backbone routers

Based on its track record as an established industry leader, Nissho Electronics caters to a variety of customer needs, supplying telecommunication carriers and service providers with distinctive products and reliable technical support in the areas of backbone routers, high-end switches, optical communications, VoIP (Voice over IP) and IPTV systems. “Green IT solutions” is the theme that guides the company’s efforts in network construction.

Electronics Device Business

*NGN: Next generation network utilizing IP technology
*NGN: Next generation network utilizing IP technology

Nissho Electronics supplies high-performance storage products and high-value-added devices based on cutting-edge technologies in combination with advanced technical support. Its clients include PC manufacturers, home appliance manufacturers, and telecommunications equipment manufacturers. In addition, the company aims to expand its operations by strengthening NGN* compatibility, while reinforcing business aimed at the multifunction devices market.

*NGN: Next generation network utilizing IP technology

Internet Data Center Business

Inside a data center
Inside a data center

Sakura Internet Inc. is a data center company that provides services to more than 100,000 customers and ranks second in Japan* in Internet backbone network capacity, boasting industry-leading cost performance in rental servers and dedicated servers in particular. Furthermore, its services are utilized by customers in various sectors due to the convenient location of its data centers in central urban districts.

*According to the 2008 spring edition of the Complete Guide to Data Centers (published by Impress R&D)

IT Infrastructure Remote Monitoring and Management Services

A management and operation center in India
A management and operation center in India

Based on a capital alliance with Net Enrich Inc. of the U.S., Sojitz provides U.S. companies with IT infrastructure maintenance and management services 24 hours a day, 365 days a year. Services are delivered from a management and operation center in India employing remote management technology developed in-house. Use of local technicians ensures that operations are easy to monitor, in addition to curtailing costs and ensuring a high degree of specialization, including the use of virtual technologies. Sojitz has now embarked on this type of highly specialized IT outsourcing business in the U.S., Japan, and the Asian region.

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