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.

Strengths of Division

  • 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
  • The Basaksehir Çam & Sakura City Hospital 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
  • Increasing demand for semiconductors, electromaterials and other parts, generated by the shift towards digitization, automation and productivity enhancement of the industorial society
  • 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

Growth Strategy

We are working to expand our existing businesses: trading industrial machinery, bearings, and other products, while also pursuing new business models by establishing medical-related businesses and carrying out projects involving the environment and advanced technology.

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. Furthermore, we intend to go beyond medical facilities to the wider category of healthcare and pursue business opportunities in areas such as remote medicine and caregiving.

For existing businesses like bearings and industrial machinery, although the spread of the COVID-19 pandemic will temporarily affect earnings, while paying close attention to the resumption of economic activity and the recovery of demand in worldwide markets including China, we will expand initiatives in both businesses that are in line with future changes in business structure to meet the needs of a post-coronavirus world as well as with trends such as AI, the IoT and 5G.

The plant business, which works to sustain the economic development of emerging countries, is expected to suffer temporary schedule delays across board due to late approval from governments and other bodies as a result of the pandemic. However we still expect a sustained rise in demand and are putting steady measures in place to meet it.

We are also focusing on environmental projects which contribute to sustainable development for local communities and at which Japanese companies excel, such as plastic recycling.

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

Businesses

Gas to gasoline plant in Turkmenistan

Bearings

■Medical infrastructure businesses

In 2017, we joined the project to construct and manage the Basaksehir Çam & Sakura City Hospital in Turkey. This project, one of the world’s largest hospital PPP management projects with Japanese corporate involvement, was opened in May 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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