Infrastructure & Environment Business Division
– Main Businesses & Vision –

Business Overview

Provides solar power generation and other renewable energy, as well as various types of social infrastructure such as railways, water, electric power plants, and hospitals, and also handles industrial machinery and bearings that support industry.

【Main Businesses】

▶  Plants (electric power, steel, fertilizer, chemical, energy) and infrastructure (power, transportation, water, renewable energy, medicine).
▶  Industrial machinery and production systems (surface mounters, bearings, equipment related to the environment and new energy, etc.)

Infrastructure & Environment

Kamikita Rokkasho Solar Power Plant in Rokkasho-mura, Kamikita-gun, Aomori
In the renewable energy sector, we plan to focus primarily on power sources beyond solar power such as wind power, geothermal power, and biomass power generation in Japan, the Americas, and Europe.
Responding to rising global demand for water through operation of businesses such as the desalination plant in Ghana.
[Major Business Activities] Renewable Energy Business
[Major Business Activities] Desalination Business
[News Releases] Sojitz Commences Commercial Operations at Recently-Completed Solar Power Plant in Rokkasho-mura, Kamikita-gun, Aomori
[News Releases] Sojitz Enters Solar Power Business in the Republic of Chile
[News Releases] Sojitz Joins Wind Power Project in Ireland
[News Releases] Sojitz Joins Largest Solar Power Project in Mexico

Power Project

One of the Oman IPP, Barka 3


Developing and operating overseas independent power producer (IPP) and integrated water and power plant (IWPP) projects. Plants up and running for the 3 large-scale projects in Saudi Arabia and Oman for which we received contracts during the last few years. Also investing in environmentally-conscious IPP/IWPP projects in regions like Asia, the Middle East, and the Americas, primarily dealing with gas-fired power plants and high-efficiency coal-fired power generation.
Working on EPC projects for power facilities in Asia and the Middle East, contributing to the creation of energy infrastructure in these countries.
[Major Business Activities] Independent Power Producer Business (IPP)

Transportation & Social Infrastructure Business

Construction on the Delhi-Mumbai DFC
Building transportation systems, supplying railway vehicles and rail parts, constructing railway infrastructures, and expanding maintenance businesses
Expanding business through investment in infrastructure management businesses for railways, ports, and water treatment, as well as social infrastructure businesses
[Major Business Activities] Transport Projects Business

Medical Infrastructure Business

Concept image of completed hospital facilities in Turkey
Expanding PPPs in hospital management and related businesses, as well as improving medical services where there is a need in the market
Steady progress is being made on the Ikitelli PPP hospital project in Istanbul, Turkey. Similar PPP projects are in the process of development.
[News Releases] Sojitz Joins Hospital Project in the Republic of Turkey

Plant Projects

Continuous annealing line producing steel plating for automobiles
Fertilizer plant in Tatarstan
Handling large-scale plant projects primarily in the petrochemical, steel mill, and energy industries, in major markets such as Russia/NIS, the Middle East, and Africa.
Devising business models for new projects and lateral expansion into related fields, to supplement our existing plant business.
[Major Business Activities] Plant Project Business in Russia/NIS countries

Industrial Machinery & Bearings

Bearings of varying shapes and sizes
Promoting expansion into growing markets based on our network of bearing industry dealers and our bearing supply chain.
Accelerating global expansion in the semi-conductor and surface mounter segment based around overseas sales and service offices. Shoring up efforts in the industrial machinery field.
[Major Business Activities] Sales of Electronic Component Surface Mounters and Related Equipment
[Major Business Activities] Bearing business

Business Overview and Vision

Supporting the development of local communities and society through all types of social infrastructure

  • ▶ In the renewable energy business, we are focusing on expanding the scope of energy sources to include solar, wind, geothermal and biomass, mainly in Japan, the Americas and Europe.
  • ▶ In the power project business, we are conducting several large-scale thermal power IPP (independent power producer) projects overseas with excellent partners.
  • ▶ In the transportation and social infrastructure business, in addition to railway projects and related services, we are also expanding our scope to include management of infrastructure such as ports and water treatment plants.
  • ▶ In the medical infrastructure business, we are focusing on hospital public-private partnerships (private finance initiatives), and develop, arrange financing and provide facility management and administrative services.
  • ▶ In the plant business, we develop large-scale plants in industries such as fertilizer, oil and gas, chemicals, steel and electric power. We are also creating new business investment opportunities using the knowledge we have gained in the plant business.
  • ▶ In the bearing business, we have invested in bearing products and component manufacturers in China and Europe, and are leveraging our distribution and sales, operational support and inventory functions to build an international supply network.
  • ▶ In the industrial machinery business, we operate surface mounter sales companies in Asia and South America, and are capitalizing on growing demand for smartphones and automotive electronic components.

Strengths That Drive Value Creation

  • ▶ Ability to create value chains using our expertise, our domestic and international networks, and the diverse functions unique to a general trading company
  • ▶ Ability to not only complete plant projects, but to handle details such as introducing and incorporating new technologies and operating service know-how
  • ▶ Knowledge and networks built in large-scale plant development in emerging markets, as well as in thermal power IPP projects and renewable energy IPP projects that involve business operation

Strategies and Initiatives

Demand for electricity is growing globally, particularly in emerging countries in Asia, and the thermal IPP business is central to meeting that demand. It is a business that can generate stable returns over the long term, and we are focusing not only on new development but also on the acquisition of existing projects, with the intention of rapidly building a portfolio of high-quality assets. In January 2016, we acquired an interest in a thermal power IPP project in Sri Lanka from a major U.S. power company. We will be fully involved in operating this business, and will absorb and accumulate management know-how in areas such as operational management and maintenance inspections of electric power plants, which will sharpen our competitive advantage. In January 2017, together with Indonesia’s stateowned oil company PT Pertamina (Persero) and Marubeni Corporation, we entered into a long-term power purchase agreement (PPA) with Indonesian state-owned electricity utility PT PLN (Persero) for an IPP project to construct, own and operate a gas-fired power plant and a floating LNG storage regasification unit (FSRU) on the island of Java, Indonesia. The consortium of PT Pertamina (Persero), Marubeni and Sojitz will procure financing for the project, construction of which is scheduled for completion in 2021. Thereafter, the large-scale power plant will provide a stable supply of electricity to PLN over a 25-year period, helping to meet Indonesia’s growing demand. Additionally, in April 2017, we made our first investment in a power plant project in the United States, the Birdsboro Power Plant. A wave of retirements of coal-fired and nuclear power plants in the United States has led to high expectations for new power supply sources to fill the void. The Birdsboro plant will help to stabilize the country’s electricity infrastructure by providing a reliable supply of power while minimizing environmental impact by utilizing highly efficient, state-ofthe- art equipment.

In renewable energy, we have several solar power plants in operation or under construction. We are also participating in the development of wind, geothermal, biomass and other power projects in Japan and elsewhere.

In the railway business in India, Sojitz has been cooperating with Larsen & Toubro Ltd. (L&T), India’s largest engineering and construction firm, since receiving the first order in 2013 for civil and track works for a dedicated freight corridor as part of the Indian government’s Delhi- Mumbai Industrial Corridor Project. The total contract amount now exceeds ¥350 billion, making this the largest Japanese ODA project ever. We have also invested in Cad Railway Industries Limited, a comprehensive rolling stock maintenance, repair and overhaul business in North America. Using the know-how obtained from these businesses, we are considering expansion in this sector in regions outside of North America.

Most of our businesses are conducted in cooperation with partners. We emphasize building trust with partners in order to respond flexibly to customer requests. We also focus on human resource development to ensure that our partners continue to choose us to work with. While valuing experience, we also promote self-improvement and work to ensure that employees and the organization benefit from the knowledge and experience they have gained.

Focus Area: Restructuring Our Earnings Foundation

Regaining our position as a core business of Sojitz by reestablishing a stable earnings foundation

We are placing priority on building a more stable earnings foundation by increasing the share of IPP, social and other infrastructure businesses in our portfolio and building up quality assets. We have organized our resources to respond to diversifying societal needs, technological innovations and the expansion of PPP projects; flexibly capitalize on rapidly growing opportunities for infrastructure improvement; and capture new business opportunities. For example, we established the Medical Infrastructure Office and integrated the Medical & Healthcare Business Development Office of the Chemicals Division in order to focus on establishing a platform for exporting efficient Japanese-style medical services to other parts of the world, which is part of the Japanese government’s economic growth strategy. The machinery units of Nichimen and Nissho Iwai, the forerunners of this division, were once key earnings drivers. We are determined to further boost our earnings capabilities and regain our position as one of Sojitz’s core businesses.

Opportunities

▶  Growing interest in renewable and clean energy around the world
▶  Strong need for thermal IPP projects to provide large-scale, stable sources of energy to meet rising demand for electricity in emerging countries
▶  Increasing demand for improved transportation, social and medical infrastructure and enhanced environmental solutions in emerging countries
▶  New trading and investment opportunities created by manufacturers' globalization of production

Risks

▶  Country risk in emerging countries
▶  Intensifying competition
▶  Declining infrastructure demand and decreasing business opportunities in oil-producing countries as a result of extended drop in energy prices

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