Sojitz Corporation


Structural reorganization [w.e.f. April 1, 2000]

Mar. 10, 2000
Nissho Iwai Corporation
2-4-5 Akasaka, Minato-ku
Tokyo, Japan
Code No. 8063

Ito TEL?03?3588-4715
Takayama TEL (06) 6209-2056

To whom it may concern

SUB:  Personnel reassignment and structural reform

At a meeting of the Board of Directors held today, decisions regarding reassignment of directors, executive officers, other personnel changes, as well as structural reform were announced. Reassignment of directors is subject to approval at the Annual General Meeting of Shareholders, to be held at the end of June, 2000.

Appended documents:
1) Structural reorganization (w.e.f April 2000)                
2) Personnel reassignments

(1)  Directors: Promotion
(2)  Directors: New appointment
(3)  Grant of representation rights
(4)  Executive officers: Promotion
(5)  Executive officers: New appointment
(6)  Retiring directors
(7)  Retiring executive officers
(8)  Change in duties
(9)  Retiring Special Advisors
(10) Resumes of newly appointed directors and executive officers

 3) Average age of directors

Structural Reorganization: April 2000

[Business Divisions]

In order to accelerate decision making and raise the level of self-responsibility by establishing optimal organizational structures,  the current organization of four operational groups and 19 divisions will be replaced with a new Division Company System of nine companies. The chain of command will be shortened from the current system of { General Manager » Division GM » Group GM } to the new           { GM » Company President }, thus accelerating the decision-making process. In addition, the number of departments will be reduced from 79 to 70, and the number of sections from 173 to 156 (A total reduction of 9 departments and 17 sections).

<Names of Companies>

Plant & Project Company 7 departments
Industrial System & Automotive Company 8 departments
Aerospace, Marine & Rolling Stock Company 6 departments
Metals Company 15 departments
Energy Company 8 departments
Chemicals Company 9 departments
Housing Materials & General Merchandise Co. 5 departments
Consumer Products Company 7 departments
Construction & Urban Development Co. 5 departments

・The divisional planning and administration offices are abolished, and new Company Planning & Administration Offices for each company will be established.

・The Information Business Division will be transferred to an independent subsidiary, ITX Corporation.

・Plant & Project Company: The Construction Machinery Department of the Infrastructure Project Division is abolished.

・Industrial System & Automotive Company: The name of the Aircraft Lease & Finance Department of the Aerospace Division is changed to Aircraft Lease Business Department.

・Metals Company: The name of the Light Metals & Copper Materials Department of the Non-Ferrous Metal Division is changed to Light Metals, Copper Materials and Products Department, and Light Metals & Copper Products Department is abolished.

・Consumer Products Company : The Project Planning and Development Office of the Foods Division is abolished, and its responsibilities are transferred to the Planning and Administration Office.

・The Nagoya Foods Department of the Foods Division is abolished.

・The Textile Planning and Development Department, Osaka Textile Department, Tokyo Textile Department, and Nagoya Textile Department of the Textile Division are merged, and the major part of its business is transferred to Nissho Iwai Apparel Corporation.

・The Logistics Business Office of the Logistics and Insurance Division is abolished, and its work is transferred to the Planning & Administration Office.

・The Logistics Office, Logistics Business Department, and Insurance Department are merged to form the Logistics & Insurance Business Department.

[Corprate Administration]

In Corporate Administration, the group/division system will also be abolished and replaced by a more dynamic organizational structure to keep pace with the newly introduced Division Company system. The new Corporate Administration will be divided into two areas: 1) Corporate Staff Functions, which will handle corporate group planning, management and central control; and 2) Service Providing Functions, which will provide services to the new companies and Nissho Iwai Group companies. The latter area will include company spin-offs with the goal of producing a slimmer corporate headquarters. The service providing functions of the accounting and finance departments will be spun off to form a new company on 1st April, 2000, to be called Nissho Iwai Management Service Corporation (NIMS). In addition, credit functions will be shifted to a new company (Credi-Pia Corporation), to be established in April 2000.

As a result of these changes, Corporate Administration will acquire a flatter organizational structure, with its 31 departments and 76 sections reduced to 22 departments and 41 sections (A total reduction of 9 departments and 35 sections).

・Establishment of the new Nissho Iwai Business Strategy Center for doing advanced research pertaining to domestic and overseas business environment as well as business strategy issues relevant to the entire Nissho Iwai group. It will also cater to the information needs of the company's management as well as business departments, and will assist group companies in acquiring the ISO 14001 standard.

・The Nagoya Administration Office is merged into the Personnel Department.

・The name of the Secretariat Department is changed to Secretariat Office.

・The Osaka Administration office is abolished, and its functions are shifted to the Secretariat Office.

・The Board of Directors Meeting Administration Department is abolished, and its functions are shifted to the Legal Department.

・The name of the Information Planning Department is changed to IT Promotion Department.

・The Osaka Management Department is abolished, and its functions are shifted to the Credit department.

・The capital management department and the Financial Business Management Department are abolished, and a new Financial Operations Department is to be established.

The Metals Accounts & Finance Department, the Machinery Accounts Department, the Logistics accounts department, and the Osaka Accounts & Finance Department are abolished, and their functions are shifted to Nissho Iwai Management Services Corporation.

The Market Risk Management Department is abolished, and its functions are shifted to the Risk Management Department.

- Personnel reassignments

- Resumes of newly appointed directors and executive officers

- Average age of directors   (As of 1st April, 2000)

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