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In the automotive field, the Machinery & Aerospace Division exports completely built-up vehicles and knocked down components. In addition, we are building a unique Sojitz value chain in the broadbased automotive industry across upstream businesses in components and engineering through downstream businesses including the after-sales and secondary markets.
The Aerospace Unit business involves commercial aircraft, defense and space- related business. As part of these operations, Sojitz has worked closely with The Boeing Company in the sale of Boeing commercial airplanes for nearly half a century. Sojitz is also exclusive Japanese sales representative for Canada-based Bombardier Inc., which manufactures regional and business aircraft and currently enjoys a virtually unchallenged presence in its respective market in Japan. We will vigorously promote sales of the full range of business aircraft that Boeing's BBJ (Boeing Business Jets) arm and Bombardier have to offer.
In the defense field, Sojitz and its wholly owned subsidiary, Sojitz Aerospace Corporation, have been working for the Japanese Ministry of Defense and Self Defense Forces by proposing necessary equipment and systems for their various missions. Such missions include overseas peace keeping missions, which are increasing in scope to deal with the requirements of Japan's changing security environment.
In the information and industrial machinery field, the division is developing operations on a global scale, with an emphasis on India, China, Vietnam and other parts of Asia. The division's wide-ranging activities include everything from steel, chemical and industrial plants, power generation and telecommunication infrastructure projects, to surfacemount technology (SMT) equipment, wire & cable processing equipment, co-generation plants, bearings and electronic components & materials.
In the marine business sector, economic growth in BRICs countries has triggered sharp growth in demand for seaborne cargo trade. In this climate, the division possesses a collaborative business network in operations that encompass new shipbuilding and second-hand ships, long-term chartering and marine-related equipment, as well as its own ship-owning business. These partnerships give the division collective strengths and a competitive advantage that are enabling it to expand its business scope, and make it a force to be reckoned with in the industry.
The Machinery & Aerospace Division's business strategy under New Stage 2008 calls for realizing overall earnings expansion by leveraging its strengths and unique capabilities in every business segment\ automotive, aircraft, information and industrial machinery, and marine. In particular, the division is focusing on aggressively channeling investments and loans in ways that enhance the earnings base and expand the functional capabilities of each business segment. In conjunction with the introduction of global management from fiscal 2007, the Machinery & Aerospace Division is forging greater ties with overseas subsidiaries in a move that should lead to expansion in overall earnings.
In its automotive segment the division focuses on upstream operations, especially automotive components, in China and other Asian markets where future growth is anticipated. Steps are taken to expand the manufacture and sales of completely built-up vehicles in Southeast Asia, Central and South America, Russia, and the newly independent states of the former Soviet Union. The division also plans to strengthen its after-sales market business, most notably in China. The division actively supports an array of operating companies overseas in emerging markets, most notably MMC Automotriz, S.A. in Venezuela and Subaru Motor LLC in Russia.
In the aviation segment, the division brings to bear its related know-how accumulated over the years in developing its operations across Asia. The division is also working to expand the earnings of the Sojitz Group through two companies, Sojitz Aerospace Corporation and Sojitz Aircraft Leasing B.V. The former handles defense and aerospace aircraft and equipment in Japan, while the latter is responsible for aircraft leasing to overseas markets.
In the information and industrial machinery segment, the division focuses on China, India and other parts of Asia as priority markets as well as participating in and promoting manufacturing and sales businesses and a host of large-scale projects. Sojitz Machinery Corporation, a trading company specializing in machinery, is the focal point of operations in Japan. Overseas operating companies handling SMT equipment and bearings are also leveraged to enhance the sales network in this segment.
In the marine segment, operations center on Sojitz Marine & Engineering Corporation, which covers all the business fields in this sector and has emerged as a dominant force in the industry in Japan. In the marine business as well as its other businesses, the division is further honing its collective strengths and competitiveness by consolidating and centralizing segment operations.
