Trust Recovery Growth Vitalization - Marubeni

Strategy by Business Segmentlance
Overseas Operations
China
Marubeni opened its first representative offices in China in 1979 just as the Chinese
government began to adopt a policy of opening the economy to foreign investments.
Having positioned China as a key market for many years, we have played a pioneering role
among Japan’s general trading companies by aggressively raising the volume of trade and
investments involving this country. Currently, we have 16 subsidiaries and offices in 14 cities in China
and Hong Kong. Targeting opportunities created by rapid economic growth in China, we are using
our global network to conduct aggressive trade and investment activities in many market sectors.
Our trade with China has been climbing steadily, rising from
US$5.0 billion in the fiscal year ended March 31, 2003, to
US$6.0 billion the following year and US$7.2 billion in the fiscal
year ended March 31, 2005. As of April 1, 2005, we have also
made substantial investments, holding US$570 million in equity
in 142 operating companies in China and Hong Kong that have
total capital of about US$1.5 billion.
Actions continue in line with Marubeni’s long-standing commitment
to growing operations in China in close step with
national-level policies within the country. Representative offices
were opened in Chengdu in April 2004, allowing us to participate
in developing western China, and Changchun in April 2005
to increase economic activity in northeastern China.
Marubeni is working with Chinese companies on joint
projects in other countries. One accomplishment was the
March 2005 winning of an order from China-based Sinoma
International Engineering Co., Ltd. to construct a US$170 million
cement plant in Saudi Arabia. We have also collaborated with
Chinese companies to bid on power plant projects in Southeast
Asia and participate in other types of projects.
In recent years, many large nationally owned companies in
China have been restructuring operations. One result is the
investment of substantial foreign capital in these companies. In
March 2005, Marubeni purchased equity in BOE Technology
Group Co., Ltd., a leading company in China’s IT industry, and
Conceptual image of a cement plant in Saudi Arabia. Partnership with Beijing BOE Investment & Development
and BOE Technology Group.
signed a strategic cooperation agreement with this company.
We expect this to lead to growing business volume and joint
investments in electronic materials for LCD panels and other
growing market sectors in China.
In the field of resource development, we have for many
years been involved in coal and aluminum operations in Australia
through a joint investment with CITIC. In March 2005, we
signed a comprehensive cooperation agreement with China
Steel Group. We plan to use this partnership to step up
resource development activities in China and other countries,
primarily involving steel resources.
Looking ahead, investments and other Marubeni resources will
be focused on four strategic categories in China: expanding business
operations in western and northeastern China; working with
Chinese companies on industrial plant projects in other countries;
conducting natural resource development projects with Chinese
companies in China and other countries; and investing in growing
market sectors such as retail, high-tech and automobiles.
Now that China has joined the WTO, the government is
starting to lift restrictions on the distribution and sale of merchandise.
In 2001, Marubeni established China’s first trading
and wholesaling joint venture. By using experience gained
through this company, which is based in Shanghai, we are now
preparing to establish a wholly owned subsidiary in China that
will handle foreign trade and wholesale operations.
Signing ceremony for an agreement with Sinosteel
Corporation.