Sojitz Corporation

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Aerospace & Transportation Project Division

Manages aerospace industry businesses as a sales agent for commercial aircrafts and defense-related equipment and services, in addition to handling leasing, part-out, and business jets. In our transport infrastructure business, we are developing airport management and contributing to the railroad industry through rail construction and MRO business. Our marine vessels business handles multiple types of vessels, including new and secondhand, and related vessel machinery.

Strengths of Division

  • Over 50 years of business experience in the aerospace, transportation, and marine vessel fields
  • Ability to collect and analyze information related to the aerospace industry, enabling us to grasp the needs and issues of aircraft manufacturers, airlines, leasing companies, parts-related companies, airport facilities companies, and others
  • Ability to propose integrated transportation infrastructure solutions
  • Ability to pursue synergy with other divisions in airport management business projects
  • Comprehensive capabilities in the marine vessel field, leveraging a wealth of knowledge and a network spanning 13 locations in 6 countries

 

External Environment

Opportunities

  • Trends in global aircraft demand
  • Trends in inbound demand
  • Trends in worldwide demand for transportation and airport infrastructure
  • Trends in demand for energy-efficient ships and LNG carriers

Risks

  • Decreased aircraft demand due to the declining population in Japan
  • Country risk in emerging markets
  • Decreased transaction volume due to deterioration of the shipbuilding industry in Japan
  • Increasingly strict environmental regulations

Growth Strategy

We will enhance our business operations in sectors such as aircraft leasing, part-out, and business jets, while focusing on the airport and transportation infrastructure business in emerging countries where demand is growing.

Koichi Yamaguchi

Managing Executive Officer, COO
Aerospace & Transportation Project Division

Although it cannot be denied that the global spread of the COVID-19 pandemic has had a drastic negative effect on demand for aircraft and airport and transportation infrastructure, we intend to take steps to ensure that demand returns once market returns to normal.

The mission of our division is to create solutions incorporating our railway and marine vessel businesses that provide new value in response to the needs of the international community, while building on our trust cultivated over many years in the aviation sector, working with aircraft manufacturers, airline companies, and airport operators.

Our approach is to first expand the value chain for our aircraft business based on our excellent track record acting as distributor for passenger aircraft in Japan, to build new foundations for earning. Our part-out business, which sells second-hand parts from decommissioned and aged aircraft to airlines and aircraft maintenance companies, exemplifies this approach. As part of efforts to come up with new products and stronger services, our division is actively working to improve our business jet services, for which demand is growing worldwide. In addition, we are developing transportation infrastructure centered on airport management and working on businesses that help revitalize local communities in Japan and overseas, particularly in emerging countries. We intend to strengthen our response to sudden changes in aviation-related businesses, and we plan to expand the scale and functions of our railway MRO business when it comes to transportation-related businesses.

Businesses

Business jet services

Airport management Palau International Airport (conceptual image of completed airport)

■Part-out business of retired and aged aircraft

We will expand business activities by leveraging our networks and expertise to further strengthen our earnings foundation, with the aim of scaling-up our part-out business of retired and aged aircraft. We are also deepening our relationships with our partners in Europe and the Americas, and we aim to construct and acquire more robust business platforms through M&A and investments in industry players so that we can respond better to increased competition.

■Transportation infrastructure business

Our EPC initiatives, exemplified by our Indian railway project, are performing steadily, and the Canadian MRO company in which we invested in 2015 is also continuing to ensure steady earnings for our North American railway business. Our goal from now on is to strategically diversify our regional partner scheme and to stabilize our earnings so that we can leverage our accumulated expertise in a variety of ways.

■Business jet services

We are accumulating projects targeting new and existing customers and steadily increasing the scale of our business. Through such initiatives as the Phenix Jet Group, in which we began investing in 2017, and a new venture with ANA Holdings, with which we began collaborating in 2018, we are creating high value-added services with the goal of further increasing our earnings. We will endeavor to expand our business from various angles in order to provide our clients with a greater variety of proposals in the future.

■Airport management business

We are actively involved in airport management business, both overseas (Palau and Khabarovsk) and in Japan (Shimojishima, Kumamoto, and elsewhere), and we are using the experience gained from these businesses to strengthen our airport management and operation functions. We are also engaged in M&A of airport-related businesses and are working to expand distribution services as we seek to expand our earnings foundation through synergy with other Sojitz Group businesses.

Organization

 

 

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