Trust Recovery Growth Vitalization - Marubeni

Strategy by Business Segmentlance
Iron & Steel Strategies and
Coordination Department
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This department was established in May 2001, ahead of the transfer of the Iron and Steel business to
Marubeni-Itochu Steel Inc. (MISI), a company founded on October 1, 2001.
The department closely coordinates activities among between MISI, Marubeni Construction Material Lease,
Thai Cold Rolled Steel and other operating companies, which in turn are used to promote more organic
functions in the iron and steel business in every industry where Marubeni Group divisions are active.
In the four years since its founding, MISI has marked rapid
progress in integrating personnel from both Marubeni and
ITOCHU Corporation, and is making its presence felt as a
leading trading company in the steel sector. In the fiscal year
ended March 31, 2005, MISI posted robust results centered
on the shipbuilding, automotive, and industrial machinery
fields in Japan, as well as brisk exports to China and other
markets in Asia.
Thai Cold Rolled Steel Sheet Public Co., Ltd. (TCR), a joint
venture between JFE Steel Corporation and the Sahaviriya
Group of Thailand, is a manufacturer of cold rolled steel sheets
primarily used in the manufacture of automobiles and home
appliances. TCR has steadily ramped up both production and
sales volumes since operations commenced in 1997, providing
high-quality cold rolled steel sheets to Japanese companies with
localized operations and other sources of demand in Thailand.
New Bangkok International Airport under construction
MISI delivered pipes, steel reinforcements and other steel materials
used in the construction of the New Bangkok International Airport, also
known as the Suvarnabhumi (or “Golden Land”) Airport, scheduled to
open in the fall of 2005.
The new airport is being built to cope with the increased demand for air
travel that has accompanied Thailand’s economic development. The
facility is located 30km east of Bangkok in the Nong Ngu Hao district, and
can handle a maximum of approximately 45 million air travelers annually.
The new airport is also intended to stimulate a surge in the number of air
passengers to Bangkok and the surrounding region. The airport, including
the concourse and two runways, is 60m in width, and will run 4,000m
and 3,700m along its eastern and western sides, respectively.
Marubeni Construction Material Lease Co., Ltd., listed on the
Second Section of the Tokyo Stock Exchange and having already
staked out a corner of the heavy scaffolding and construction
materials industry, is also steadily broadening its business scope.
As a holding division for operating companies involved in
iron and steel products, the Iron & Steel Strategies and Coordination
Dept. will remain committed to growing earnings and
generating new businesses via its operating companies. At the
same time, the department is upgrading its intelligence functions,
namely its capacity to gather, assess and provide market
data pertaining to target customers, steel products and other
market aspects, as well as its solutions functions, essentially
its ability to analyze current trends, identify key topics, and
propose solutions. In this way, the department is determined
to help Marubeni sustain the comprehensive nature of its iron
and steel product businesses.
Jiaxing Hongzhong Steel Processing
MISI established Jiaxing Hongzhong Steel
Processing Co., Ltd. as a new steel plate and
sheet processing center in the Jiaxing City region
of China’s Zhejiang Province. The new company
was capitalized at US$10 million. Recently, home
appliance manufacturers and automakers have
accelerated their advance into China. This trend
has sparked a dramatic surge in demand for highquality
steel plates and sheets, including highstrength
products used in automobile production.
In response, MISI moved to establish the new
plant, which is scheduled to come on stream in
early 2006.
TCR
The Thai automobile industry is aiming to
become the “Detroit of Asia.” TCR focuses
heavily on supplying this sector and the rest of
Thailand with around 750,000 to 800,000 metric
tons of high-quality cold rolled steel each year. At
the same time, TCR exports between 150,000 to
200,000 metric tons of these products to other
fast-growing neighboring countries in Asia.