Welcome: FOSHAN BANDON NEW ENERGY TECHNOLOGY CO., LTD.
Home      News       Testing the Coal Industry, Japanese Comp…

News

Testing the Coal Industry, Japanese Companies Tap into China's Energy Industry

Mitsui & Co., Ltd. is planning to increase investment in China's energy industry. The company's general representative in China, Toshihiro Soejima, said in an interview with the Shanghai Securities News yesterday that the company is considering cooperating with Chinese companies to develop resources overseas to meet the needs of the Chinese market. But he did not disclose the Chinese "candidates" being negotiated. Mitsui & Co., Ltd. is a trading company of the Mitsui Consortium, one of Japan's six major conglomerates.

"The area we most want to invest in is the energy industry, such as the development of oil and natural gas, and coal mining," Toshihiro Soejima said. "But this area has not yet been opened to foreign investment in China. Mitsui & Co. has invested the least. It is a pity, but we Really want to get in and develop.”

Toshihiro Soejima believes that, subject to restrictions, the most likely field to enter now is coal. Although it cannot enter the mining process, it can enter the coal liquefaction, gasification and coal chemical product production processes. "We may look at those aspects."

Toshihiro Soejima said that Mitsui & Co.’s future key strategic development areas are new energy development, application environment, new public transportation systems and recycling businesses.

Toshihiro Soejima believes that China’s energy policy should be guided by improving energy development and utilization, introducing advanced foreign technologies, vigorously developing high-value, energy-efficient coal resources, and actively acquiring overseas resource rights.

Mitsui & Co. is a trading company, and most of its cooperation with Chinese companies is responsible for "promotion." Toshihiro Soejima said that Mitsui & Co.’s advantages in global trade can help more Chinese companies “go global.”

It is reported that Mitsui & Co., Ltd. has signed a strategic agreement with Shanghai Radio and Television, with the goal of building it into the Sony of China. The export business of LCD panels produced by SVA is carried out in cooperation with Mitsui & Co. "We are working hard to expand its sales market."

Toshihiro Soejima also revealed that a new business that has just been started recently is the plan to export Chinese auto parts to the international market. He believes that China's auto parts industry can become China's powerful export industry in the future. "We are in contact with many auto parts manufacturers in China and are selecting partners. Of course, this has just begun."

Toshihiro Soejima said that China's GDP has maintained a growth rate of more than 9% in recent years. This situation will continue for some time and may slow down in the future.

Toshihiro Soejima emphasized that there is currently no overall acquisition plan in China and will only invest in existing companies. But before investing, a market survey will be conducted. He said that Mitsui & Co.’s main considerations for investing in China include: whether there is market space for the investment target product, what competitors are in the industry, and cost accounting.

Although Chinese real estate is favored by foreign investors, Toshihiro Soejima is very cautious. He said the company has only made a small portion of real estate investments in China. Japan experienced a bubble economy from the 1980s to the early 1990s, in which Japanese real estate was the hardest hit. Mitsui & Co., which invested in real estate at that time, suffered heavy losses as a result, so the company became very cautious in real estate investment.

Founded in 1876, Mitsui & Co. is the oldest trading company in Japan. Its business involves energy, steel, non-ferrous metals, machinery and electronic information, infrastructure, chemicals, grain and oil, retail logistics, finance, etc. Overseas branches are located in 72 countries. It is now affiliated to the Mitsui Foundation of Japan. This consortium, together with the Mitsubishi Foundation, Sumitomo Foundation, Marubeni Foundation, Itochu Foundation, etc., controls 99% of Japan's large-scale manufacturing companies and trading companies, and controls the lifeblood of various Japanese industries.

At present, Mitsui & Co.'s turnover in China has reached about 9 billion US dollars, but Toshihiro Soejima admitted that the company's business volume in China only accounts for about 8% of its global business volume.