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2) Structural Reform |
| (Structural Reform/Reorganization:
April 2002) |
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| Business
Divisions |
<< Restructuring
of Division Company System >>
The Division Company System of 5 companies will be changed
to that of 6 companies. |
| 1. |
The
Energy Company will be merged with the ferrous materials/coal
and non-ferrous metals groups of the Metals Company to
form the Energy & Mineral Resources Company. |
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|
| 2. |
The
Chemicals, Consumer & Forest Products Company will be
divided into the Foods & Consumer Products Company and
the Chemicals & Housing Materials Company. |
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|
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< Machinery
Company >
The number of departments will be reduced from 16 to 9 (7
Departments and 2 Offices). |
| |
| A Nine Department
System will be introduced, consisting of the Planning & Administration
Office, Business Support Office, Energy Project Dept., Plant
& Power Business Dept., Industrial System Dept., Electronics
& Telecommunication Systems Dept., Automotive & Transportation
Systems Dept., Commercial Airplanes Dept. and the Military Aircraft
& Defense Electronics Dept. |
- A Business Support
Office will be established.
- Parts of the
Energy & Chemical Project Dept. and the Offshore & Energy
Project Dept. will be restructured and merged to form the
Energy Project Dept.
- Parts of the
Energy & Chemical Project Dept., Heavy & Industrial Project
Dept. and Power & Infrastructure Business Dept. will be
restructured and merged to form the Plant & Power Business
Dept.
- The Industrial
Plant Dept., Medical System Dept. and Nagoya Machinery Dept.
will be merged to form the Industrial System Dept.
- The Life Industries
System Dept. and Osaka Industrial Machinery Dept. will be
merged to form the Electronics & Telecommunication Systems
Dept.
- The railway
projects of the Railway Projects & Welding Materials Dept.
will be merged with the Automotive Dept. and reorganized
as the Automotive & Transportation Systems Dept. Trading
rights for welding materials have already been transferred
to NI WELDING CO., LTD.
- The functions
of the Marine Dept. will be transferred to Nissho Iwai Marine
Co., Ltd., a newly established company whose name was changed
from KOKUSAI KISEN K.K., and to the Marine Project Office
(newly established) within the Planning & Administration
Office.
- The Aircraft
Trade & Lease Business Dept. and the Space & Aircraft Dept.
will be merged to form the Commercial Airplanes Dept.
|
< Metals
Company >
The number of departments will be reduced from 15 to 10
(8 Departments and 2 Offices). |
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| Five departments
(Iron Ore Dept., Coal Dept., Metals & Ore Dept., Aluminium &
Copper Raw Materials & Products Dept. and Nickel, Zinc & Rare
Metals Dept.) will be transferred to the newly established Energy
& Mineral Resources Company. |
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< Energy
& Mineral Resources Company >
The number of departments will be 8 (6 Departments and 2
Offices). |
| |
| An Eight Department
System will be introduced, consisting of the Planning & Administration
Office, Coal Liquefaction Project Office, Petroleum Dept., Nuclear
Fuel Cycle Dept., Coal Dept., Iron Ore Dept., Ferro-Alloy &
Non-Ferrous Materials Dept. and the Aluminium & Copper Dept. |
- The Coal Dept.
of the Metals Company and the Thermal Coal Dept. of the
Energy Company will be merged to form the Coal Dept.
- The Metals &
Ore Dept. and the Nickel, Zinc & Rare Metals Dept. will
be merged to form the Ferro-Alloy & Non-Ferrous Materials
Dept.
- The name of
the Aluminium & Copper Raw Materials & Products Dept. will
be changed to Aluminium & Copper Dept.
|
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< Foods
& Consumer Products Company >
The number of departments will be 5 (4 Departments and 1
Office). |
| |
| A Five Department
System will be introduced, consisting of the Planning & Administration
Office, Foodstuff Dept., Oil & Feedgrain Dept., Marine Products
Marketing Dept. and the General Commodities Dept. |
- The Foods Marketing
Dept. will be reorganized, and its functions will be transferred
to the Foodstuff Dept. and NISSHO IWAI FOODS CORP.
- The name of
the Grain & Sugar Dept. will be changed to Foodstuff Dept.
|
| |
< Chemicals
& Housing Materials Company >
The number of departments will be 7 (5 Departments and 2
Offices). |
| |
| A Seven Department
System will be introduced, consisting of the Planning & Administration
Office, Business Support Office, Housing Materials & Products
Dept., Chemicals Dept., Chlor-Alkali & Vinyl Dept., Fertilizer
Dept. and the Electronic Materials Dept. |
- A new Business
Support Office will be established.
- The Log Marketing
Dept. and the Housing Materials Dept. will be merged to
form the Housing Materials & Products Dept.
- The Fertilizer
& Chlor-Alkali Dept. will be divided into the Chlor-Alkali
& Vinyl Dept., and the Fertilizer Dept.
- The name of
the Electric Materials Dept. will be changed to Electronic
Materials Dept.
|
| |
< Construction
& Urban Development Company >
The number of departments will be 5 (4 Departments and 1
Office). |
- The name of
the Construction Materials & Equipment Dept. will be changed
to Project Development & Construction Dept.
|
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| Corporate
Administration |
| The number of departments
will be reduced from 17 to 8 (4 Offices, 3 Units and 1 Department).
|
| |
- Independence
will be given to the Nissho Iwai Business Strategy Center
to form the Nissho Iwai Research Institute, Ltd. (abbreviated
as NIRI).
- Nissho Iwai
Professional Services, Ltd. (hereafter called NIPROS) will
be established, and a major part of the functions excluding
corporate functions will be transferred to NIPROS.
|
| With this transfer
of functions: |
| 1. |
Out
of the respective functions of the Corporate Planning
Dept., Human Resources & General Affairs Dept., IT Promotion
Dept., International Planning & Co-ordination Dept. and
Group Planning & Co-ordination Dept., the corporate functions
will be centralized in the newly established Corporate
Planning Unit, and all other functions will be transferred
to NIPROS. |
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|
| 2. |
Out
of the respective functions of the General Accounting
Dept., Finance Dept., Risk Management Dept. and Legal
Dept., the corporate functions will be centralized in
the newly established Corporate Administration Unit, and
all other functions will be transferred to NIPROS. |
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|
| 3. |
The
'New Business Unit' will be established to exercise control
over the e-Business Development Dept. and the Bio Business
Dept. |
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|
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| Purpose
of Structural Reorganization |
| 1. Company Restructuring |
| 1. |
Regarding
'Energy & Mineral Resources Company' resulting from
the merger of the energy and ferrous material & non-ferrous
metals groups: The merger will be carried out in order
to flexibly and systematically respond to resources
and energy business, which is the core business area
of the company, and to unify the thermal coal business
within the Energy Company and the coal business within
the Metals Company.
Except for
the aforementioned changes, the Metals Company (Steel
Products groups and Wire Rod & Specialty Steel groups)
will remain the same.
|
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|
| 2. |
Regarding
the restructuring of the Chemicals, Consumer & Forest
Products Company into: |
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- The Foods
& Consumer Products Company, concerned with foods
and general commodities, and;
- The Chemicals
& Housing Materials Company, concerned with chemicals
and materials (logs and housing materials);
|
| |
This
involves clarifying the strategic direction and respective
missions of the consumer products field (which involves
food-stuff/products and general commodities, and which
has been designated as a core business area in the Medium-term
Management Plan 2005) as well as the chemicals and materials
fields (marked as areas for strategic alliance in the
same Plan), aiming to strengthen financial performance
and maximize corporate value, both on a consolidated as
well as non-consolidated basis. |
|
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| 2. Reorganizing
Corporate Administration |
| |
|
Proceeding with
the strategic spin-offs and mergers at Nissho Iwai Corporate
Administration and Administration Service subsidiaries, Nissho
Iwai Professional Services, Ltd. (NIPROS) will be established
as a Shared Service Company (SSC).
The purposes of
establishing NIPROS are for 'small head office' and NIPROS
to systematically link the corporate administration of groups,
as part of reorganization, to modify comprehensive administrative
functions as a group into a company promoted pivotal system,
to aim at optimizing administrative functions and personnel
assignments, and to promote efficient administrative functions
and cost reductions within groups.
The main points
in the administrative reforms are to promote selection and
focus on core administrative functions. By introducing market
principles and by aspiring to establishing an efficient functional
organization through contracts between service providers and
beneficiaries, administrative reforms will improve operational
efficiency, quality of service and expertise, and enable the
company to aim at establishment of a mechanism for income-generation
by providing services to the open market.
As a result, the
number of personnel responsible for Nissho Iwai corporate
administration, which gets off the ground on April 1, 2002,
will be approximately 120, and the number of NIPROS employees
will be approximately 540 in all, consisting of its own employees,
employees on loan from Nissho Iwai, and employees transferred
from Nissho Iwai.
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