Sojitz Corporation

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Machinery & Medical Infrastructure Division

Handles industrial machinery and bearings which form the backbone of every industry. We are also working to expand Public-Private Partnership (PPP) hospital business and create healthcare businesses in associated fields, with further exploration and investment in primary healthcare and digital healthcare fields. We aim to build plant EPC businesses and cultivate new businesses, particularly businesses which address environmental issues. We will also plan to expand into areas such as start-up investments and advanced technologies.

Business Models Supporting Value Creation

  • Experience managing operating companies involved in bearings and industrial machinery, a dealership network, and a supply chain infrastructure for procuring parts and products
  • Relationships with globally competitive domestic and overseas materials, processing, machinery manufacturing, and EPC companies
  • Ability to compose and propose comprehensive business schemes, including design, full-turnkey construction, finance, management, and other aspects
  • Ikitelli Health Campus in Turkey, one of the world’s largest single hospitals managed by Japanese companies

 

External Environment

Opportunities

  • Increased demand for infrastructure due to economic development and improved standards of living in emerging countries
  • Heightened need for environmental countermeasures accompanying rise of global environmental regulations
  • Growth of demand for semiconductors, electromaterials, and other parts made increasingly necessary by industrialized society’s shift towards digitization, automation, and improved productivity
  • Surge in innovation and advanced technology, increased investment opportunities in start-ups

Risks

  • Country risk due to political, economic, or social changes in emerging countries, which comprise the division’s main markets

Businesses

■Medical infrastructure businesses

We utilize our expertise creating PPPs* and businesses in adjacent fields as we work on medical infrastructure projects. Through work on our PPP hospital management project, creating new businesses in the related healthcare field, and investing in medical platforms and new technology, we are helping to improve people’s quality of life.
・Hospital PPP project development  ・Investment in new technology  ・Medical-related services  ・Medical platform business

* Public-Private Partnership: A business that involves collaboration between the public and private sectors.

■Industrial machinery and plant businesses

Our surface mounter sales business has established a sales and service network centered on China, Southeast Asia, India, and Brazil. For our plant business, we are branching out past our Russia and the NIS-centric operations, accelerating our collaboration with TTCL Public Company Ltd. in Thailand, in which we have a financial stake, and develop EPC projects in Asia. In this way, we are demonstrating our ability to develop projects linked to industrial machinery.
・Plant projects  ・Sales of surface mounters

■Bearing & Forefront Industry businesses

We are involved in a joint venture which manufactures finished bearings, as well as a component processing business which will produce parts used at major bearing factories worldwide. We are securing stable earnings by constructing supply chains focused on China, and in 2016 we began investing in bearing component manufacturing companies in Spain and are now entering the European market.
・Bearing trading

■Industrial equipment sales (Sojitz Machinery Corporation)

As an general trading company specializing in industrial machinery, Sojitz Machinery sells and offers support for installation of equipment and materials across a diverse range of fields: advanced systems, heavy industry plants, chemical and environmental plants, industrial machinery, and automobile equipment. We aim to increase Sojitz Machinery’s earnings by increasing the size of its undertakings, and we are focusing our efforts on expanding its business through synergy with other divisions.

Gas to gasoline plant in Turkmenistan

Bearings

Growth Strategy

We are working to expand our existing businesses trading industrial machinery, bearings, and other products, as well as establish medical-related businesses and other new business models.

Ikuo Koinuma

Executive Officer, COO,
Machinery & Medical Infrastructure Division

The Machinery & Medical Infrastructure Division is made up of four operating organizations*: the Medical Infrastructure Department, the Bearing & Forefront Industry Department, the Industrial Machinery & Plant Project Department, and Sojitz Machinery Corporation, our machinery trading company. Our mission is to harness the diverse business functions and partner networks in Japan and overseas that we have cultivated over the long history of our plant project business, to construct infrastructure that will become the foundation for industry in countries around the world.

For our PPP hospital management project in Turkey, we will establish a revenue model that includes facility management services. It will be possible for us take advantage of the network of diverse companies that we have created to collaborate with them on the development of medical robots tailored to local medical treatment, health, and nursing care needs. We also seek to discover new business opportunities in the future by broadening our outlook to include other businesses in the healthcare field, going beyond medical facilities.

In addition, we will broaden the scope of trading for our existing businesses, such as bearings and industrial machinery, based on an increasing need for digitization automation, and greater productivity in industrialized societies.

We believe that demand for plants will continually increase in the future, as they support the economic development of emerging countries. While we will continue our existing EPC business, we are also focusing on environmental projects which contribute sustainable development for local communities and at which Japanese companies excel, such as plastic recycling and waste treatment.

* The division was reorganized on April 1, 2019.

Initiatives

■Medical infrastructure businesses

In 2017, we joined the project to construct and manage the Ikitelli Integrated Health Campus in Turkey. This project is one of the world’s largest hospital PPP projects with Japanese corporate involvement, and acting as project manager, we aim to open the health campus in October 2020. We are collaborating with Japanese companies to accelerate the development of related medical services and establish a business model that incorporates both hospital management and hospitaladjacent businesses. We also hope to join businesses which provide medical treatment platforms and businesses utilizing new technology in the “smart healthcare” field. In this way, we will create a variety of services to meet increasing healthcare needs.

■Bearing & Forefront Industry businesses

We will branch out from our material procurement/processing/product sales-based supply chains to strategically expand from the Chinese market to the European market. For every link in the supply chain, we are proposing new businesses that will stimulate growth in dealerships, supporting new product development, and expanding our bearing OEM business. In addition, we are aiming at manufacturing automobile parts that use bearing component technology, as well as investing in startups to accelerate new business creation in cutting-edge fields.

Organization

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