Sojitz to Expand Investment for Raw Material along New Long Vision

Energy & Metal division of Sojitz, Japanese major general trader, started to draw up the new management vision for next 5-10 years. The basic strategies are extension of strong fields, such as coal and ferroalloy, while reinforcement of relatively weak fields and cultivation of large markets, such as iron ore and copper. The division eyes strategic combination of investment and trading for raw materials, especially targeting users in Asia and emerging countries. The division will include the strategy in Sojitz’s next mid-term management plan starting in April 2012.

The division outlines the long-term vision until late January. The division reviews its business portfolio along the strategic vision and considers necessary actions for the future growth, said Mr. Shigeki Dantani, the division’s head. The division firstly starts market analysis including such phenomena as rapid economic growth in emerging countries or shortage of fine grade raw materials.

At the same time, the division advances focus & deep of raw material business assets along the long-term vision though the firm has acquired business assets based on market situations at then. On the new long vision, the division aims to draw up practical investment plan for raw material business including asset sales or financial reinforcement in order to acquire fine raw materials and maximize the firm’s profitability.

The division plans to enhance ferroalloy business including molybdenum, tungsten and nickel while continue aggressive investment for coal business. As to copper, the division eyes next equity acquisition after expansion of Gibraltar mine in Canada. For iron ore, the division will realize development of Southdown mine in West Australia.