Introduction
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02 Shosha Handbook 2017

JulyContents

Introduction …………………………………………………………………………………………………… 02
Chapter 1: What Are the Shosha?
1. The Strengths of the Shosha
What Are the Shosha? ……………………………………………………………………………
（1）
Using a Variety of Functions to Create Businesses ………………………………………
（2）
Extensive Range of Assorted Products and Business Sectors ………………………
（3）
Global Networks………………………………………………………………………………………
（4）
The Continuously Evolving Functions of the Shosha ……………………………………
（5）
Why Shosha? — Ability to Make Proposals to Meet Wide-ranging Needs — ……………………
（6）
Column ① How the Shosha Overcame a Variety of Crises …………………………………………………

04
05
06
07
08
09
10

2. The Shosha's Business Model
Trade and Business Investment Are the Two Cornerstones …………………………
（1）
Features of Shosha's Business Investments ………………………………………………
（2）
The Shosha's Value Chain Strategy ……………………………………………………………
（3）
Column ② Catchphrases That Summarize Shosha's Activities …………………………………………
Column ③ Shosha's Characters and Kids' Websites …………………………………………………………

11
12
13
14
14

Chapter 2: The Shosha Are Active Worldwide
1. Working to Resolve Global Social Problems ……………………………………………… 15
2. The Roles of the Shosha
Stable Supplies of Resources and Energy (Energy) ………………………………………
（1）
Stable Supplies of Resources and Energy (Metal Resources) ……………………………
Stable and Secure Supplies of Safe Food …………………………………………………
（2）
Achieving a Sustainable Society ………………………………………………………………
（3）
Establishing Social Infrastructures in Japan and Overseas ……………………………
（4）
Leading Global Expansion ………………………………………………………………………
（5）
Supporting More Comfortable Lifestyles ……………………………………………………
（6）
Preparing for the Aging Society …………………………………………………………………
（7）
Column ④ The World's Shosha (Trading Companies) (Forbes Global 2000) ………………………………………

16
18
20
22
24
26
28
30
32

Chapter 3: The Shosha's CSR Activities
1. The Shosha's CSR Activities …………………………………………………………………… 33
2. Action for a Better International Community (ABIC) ……………………………… 34
Column ⑤

Heritage of Industrial Modernization and the Shosha …………………………………………… 35

Chapter 4: The Activities of Japan Foreign Trade Council, Inc. (JFTC) …… 36
Attached Table: The World Economy and Trade
Shosha's Corporate Code of Conduct

Shosha Handbook 2017 03

Chapter 1 What Are the Shosha? 〜The Strengths of the Shosha〜1（- 1）

What Are the Shosha?

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* Comment by Professor Ryuji YASUDA, Graduate School of International Corporate Strategy, Hitotsubashi University, during
the symposium on The Front Line of the Shosha Business sponsored by JFTC.

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Extensive Rangeof Assorted
Products andBusiness Sectors

Variety offunctionsGlobalnetworks
Problemsolving
Valuecreation

Change Provides 0pportunities
04 Shosha Handbook 2017

1（- 2）Using a Variety of Functions toCreate Businesses

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HQYLURQPHQWVFunction

Explanation

BusinessCore functions that promote global tradetransactions
Information Collect and analyze extensive, wide-ranging
and research information for use in business
Analyze supply and demand trends, andMarketdevelopment open up global markets

BusinessStrengthen business development &development and promotion, and group management
management
Risk
Minimize business risk
management
Logistics

Aspire to optimum overall logistics

Finance

Provide financial functions that are uniqueto Shosha, and develop leasing business

Organizer

Combine functions organically to develop
projects
Shosha Handbook 2017 05

Chapter 1 What Are the Shosha? 〜The Strengths of the Shosha〜1（- 3）

Extensive Range of Assorted
Products and Business Sectors
Involvement in a Wide Range of Business Sectors

Machinery,transportationequipment,
infrastructure

Construction machinery, machine tools, agricultural machinery, mining machinery
Power generation, water supply & sewerage systems, railways & ports,
cargo handling facilities
Solar, wind & geothermal power generation
Automobiles & auto parts, railways, ships, aircraft

Energy,metals,chemicals

Coal, iron ore
Iron & steel products, steel service centers
Copper, aluminum, nickel, rare metals
Precious metals (dealing)
Oil, LNG, LPG, petroleum products, alternative energy sources
Petrochemicals, inorganic & fine chemicals, synthetic resins, electronics materials,
fertilizers & agrochemicals, pharmaceuticals, and biochemicals

Consumergoods

Textiles (raw materials, products, materials, apparel, branded goods)
Lumber & construction materials, paper & pulp, chippings, leather, ceramics, tires,rubber products, interior goods and household sundries
Grains, raw sugar, marine & livestock products, fruit & vegetables, oils & fats,
beverage ingredients
Alcoholic beverages, canned goods, dairy products and other processed foods
Pharmaceuticals, drug stores, health-related products, hospitals, and facilities for theelderly
Convenience stores & supermarkets

Information,
construction
and real estate,finance,logistics

Information & communications, CATV, TV shopping
IT, BPO services
Industrial parks
Leasing (automobiles, railway rolling stock, aircraft, etc.)
Comprehensive regional development, housing (development, construction,
sales & management), commercial facilities, office buildings (construction,
facilities management, leasing, distribution)

Huge Industrial Groupings&RPSDQLHVWKDWFUHDWHFRPSDQLHV(VWDEOLVKLQJEXVLQHVVFRUSRUDWLRQVHQWHULQJQHZVHFWRUVWKURXJKDFTXLVLWLRQVRIH[LVWLQJFRPSDQLHV

4,100 / 400,000

In Japan Approx.
andoverseascompanies

employees

Consolidated companies/employees of seven Shosha* (incl. employees of parent companies: 30,000)* Seven Shosha: Itochu Corporation, Marubeni Corporation, Mitsubishi Corporation, Mitsui & Co., Sojitz Corporation, Sumitomo Corporation,
Toyota Tsusho Corporation (The same applies hereinafter.)

06 Shosha Handbook 2017

1（- 4）256 26
Global Networks

No. ofBusiness locations of thedomestic &seven Shosha (excluding
cities overseas
cities in Japan overlaps)
overseas
locations （Reference：The number of Japanese Embassies, Consulates and Permanent
Missions totaled 220 as of Jan. 2017）

Opening up the World's Frontiers
East Asia*
Europe, Russia, CIS

39
40

Number ofbusiness locations
increasing in North
and Latin America,
Asia & Oceania

37

40

North America

42
Middle East

24

53

Latin America

25

25

31

Asia & Oceania
Africa

18

19

48

51

Changes in
the numberof businesslocations

2 013

2 016

* East Asia: China, Hong Kong, Taiwan, Korea, Mongolia
Note: Number of cities in which the seven Shosha have established business locations derived from Annual Reports (Integrated Reports), websites and other sources(this number differs from the numbers disclosed by individual companies).

Shosha Handbook 2017 07

Chapter 1 What Are the Shosha? 〜The Strengths of the Shosha〜

1（- 5）The Continuously Evolving Functionsof the Shosha$PLGVW WKHFRQVWDQWO\FKDQJLQJH[WHUQDOHQYLURQPHQW WKH 6KRVKD KDYHDOZD\VDGRSWHGDÀH[LEOHDXWRQRPRXVDSSURDFKWRHYROYLQJDQGH[SDQGLQJWKHLUUROHVDQGWKHVHUYLFHVWKH\RIIHUZKLOHDQWLFLSDWLQJDQGLGHQWLI\LQJWKHFXUUHQWQHHGVRILQGXVWU\DQGVRFLHW\$VGLVFXVVHGLQ&ROXPQ①EHORZWKH6KRVKDKDYHIDFHGGRXEWVDERXWWKHLUIXWXUHVXFKDV
ZKHQSHRSOHWDONHGDERXWWKHGHFOLQHRIWKH6KRVKDRUWKHZLQWHU\HDUVRIWKH6KRVKD)RUWKHLUSDUWWKH6KRVKDWRRNDSRVLWLYHDWWLWXGHDQGUHSHDWHGO\UHIRUPHGWKHPVHOYHV:HEHOLHYHWKLVDELOLW\WRUHVSRQGWRFKDQJHLVLQLWVHOIWKHJUHDWHVWVWUHQJWKWKDWWKH6KRVKDSRVVHVVThe Evolution of the Roles and Functions of the Shosha

Historical background

1945

1950

1960

1970

Postwarrecovery

Rapid economic growth

Tradingnation

Massconsumption

1980
Stable growth
Resource &energyconservation▶World War II ends (1945)▶Private foreign trade resumes (1947)

1990

2000

Bubbleeconomy

2010

Post-bubble
Globalization

Transition towards aservice-/softwarebased economy

Collapse of
the bubble
economyIncreasingly
borderless world
Sustainable growth▶Collapse of
LehmanBrothers
triggers theGreat
Financial
Crisis (GFC)(2008)▶Floating exchange rate system
introduced (1973)▶First Oil Crisis (1973)▶Fixed exchange rate (1949)▶Korean War (1950)▶Second Oil Crisis (1979)▶Plaza Accord (1985)▶Export promotion measures (1952)▶Berlin Wall comes
down (1989)▶Europeansovereigndebt crisis▶Earth Summit (1992) (2010)▶Nixon Shock (1971)▶Asian▶Boom triggered by the Plan for
currency crisis (1997)
Remodeling
the Japanese Archipelago (1972)▶9.11 terrorist
attacks (2001)▶Shosha authorized to hold limited
foreign exchange open positions (1956)▶China joins theWTO (2001)

Shosha's roles and functions"Almighty
Shosha"debateImport/export offoods, textiles andlight industry
products
Earn foreign currencies"Decline of the
Shosha"debateImport raw materials
Introduce foreigntechnology
Export manufactured
products(Ex.: heavy &chemicals industries(iron & steel,shipbuilding, plant,
petrochemicals,etc.))"WickedShosha"debate"The winter yearsof the Shosha”

Resources & energy
Development
Procurement
Preparations foralternative energy
sources

Debate over whether
the IT revolution willsideline the Shosha

Supportoverseas
expansion
Promoteimports
Promotecommercialization
Developdomestic
demandMarketdevelopment

Business transaction functions
Logistics functions
Foreign technology introduction and market
development functions
Financial functions (Shosha finance)

Risk management &finance functions
Organizational
functions

Businessmanagement
Investment &financialinformation
Risk
management
Upgrade theabove

08 Shosha Handbook 2017

Emerging
economies/
resources boom

Respond to
globalization andthe information
revolution
Build up logistics
and supply
chains

Improveinfrastructure
in Japan andoverseas
Realize more
comfortable
lifestyles

Respond to
global environmental problems

Prepare for the
aging society

Upgradeinvestment &finance,logistics,
information,marketingfunctions,and riskmanagement
methods

Value chain
andintegrator
functionsthat makeuse ofother
functions1（- 6）Wh y Shosha?

—Ability to Make Proposals to Meet Wide-ranging Needs —Extensive knowledge of global markets

Strong teams of in-house experts(taxation, accounting, finance, legal matters, risk management)

Expert at pioneering new businesses and markets

Ample financial resources

The Shosha develop businesses by managing them themselves

Ability and clear mission to respond to customers' needs
by providing solutions to all their problems

Cost Savings Achieved Through the Use of
Trading Companies and Wholesalers■Most of the cost was saved ■A significant portion of the cost was saved■Little of the cost was saved
Cost of gathering information on
local laws, regulations andbusiness

131

Cost of marketing activities,
including local sales promotion

115

115

120

91

130

103

86

Cost of establishing local sales
and after service bases

96

Cost of exporting products

116

72

Cost of after-service for products
0

77

130

120
50

100

121
150

200

250

300

350

400
（Company）

Source: Prepared by JFTC based on the White Paper on International Economy and Trade 2016 published by METI

Shosha Handbook 2017 09

Column

Column1Although the Shosha have been key drivers of Japan's postwar

How the Shosha Overcame growth, they have certainly not enjoyed smooth sailing at all times.
As they faced multiple difﬁculties in the process, they responded toa Variety of Crises theneeds of the times by ﬂexibly evolving their functions.

1960s“The Decline of the Shosha” debate
The first indication of doubts in the future of the Shosha came in
the form of an article on “The Decline of the Shosha*1”. Since
trade was the mainstay business of the Shosha, the argument
went, their services would no longer be needed if manufacturers
became large enough to establish their own sales networks. In
reality, however, Japan was in the midst of its rapid growth era,leading to a situation where the manufacturers needed the Shosha
more than ever because of their skills in procuring the necessary
raw materials and introducing first-class technology fromoverseas. The manufacturers and the Shosha also worked
together to develop export markets and steadily expand theirbusinesses. Several factors were behind the rapid advance of the
Shosha. The debate over the decline of the Shosha not only
provided them with an opportunity to strengthen their corporate
structures, but also encouraged them to formulate long-term
strategies that included diversifying their operations.

yen against the dollar that followed the Oil Crisis eroded Shosha
profits, ushering in what was known as “the winter years of the
Shosha.” Weaker Shosha profits were attributed to four factors: ①
the Shosha were slow to react to change in Japan's industrial
structure as it made the transition from large smokestack industries
to lighter, more compact knowledge-intensive industries; ②growing
exchange and country risk; ③manufacturers' growing disengagementfrom Shosha; and ④increasingly bloated in-house organizations.
The Shosha survived the winter years of the Shosha by taking amore defensive stance. To overcome these problems, they adopted
measures to improve management, including steps to reduce theirinterest burdens by diversifying their funding methods andpreventing bad debts through more rigorous risk management.
They also became more proactive towards exports to the oilproducing nations, which had begun to play a much greater role in
the global economy following the oil crisis, and towards overseas
investment and entry into new business sectors.

1990s
Around the time of the Oil Crisis

Criticism of the Shosha and the theory
that they were no longer neededSocial criticism of the Shosha mounted from the second half of1971 through 1975, when the Japanese economy faced disruptions
caused by rapid price increases. The Shosha were seen as the
ringleaders behind runaway inflation because they were accusedof hoarding and withholding goods from sale. Japan's Fair Trade
Commission carried out investigations, while the top managementof the larger Shosha were summoned to testify before the Diet
(Japan's parliament). This alerted the Shosha to the impact that
their own activities had on society and to the magnitude of theirsocial responsibilities. As a result, they drew up The General
Trading Companies' Corporate Code of Conduct*2, which declaredthat the entire sector would henceforth act in a spirit of selfrestraint.

Second half of the 1970s through the first halfof the 1980s“The winter years of the Shosha”

The “collapsing Shosha” debate andthe theory that the IT revolution would
eliminate the need for the Shosha
The after effects of the collapse of the bubble economy and the
Asian currency crisis presented the Shosha with an unprecedented
management problem in the latter half of the 1990s, prompting
business magazines to put out numerous special editions on thecollapse of the Shosha. This led to a sectoral restructuring
whereby the Shosha sought to get back on their feet again byfocusing on their core competences, liquidating their unprofitablebusinesses, and writing off their problem loans. Other observers
wondered whether the IT revolution would render the intermediaryfunction of the Shosha unnecessary. Against this background, theShosha saw business investment as a new way out of theirdifficulties, proactively expanding their resource and energy
sectors, and their businesses in emerging economies such as
China. They also channeled more effort into their downstream
businesses in Japan. Making greater use of IT in the logistics
sector, they moved ahead with supply chain management
initiatives designed to enhance their customers' production andsales activities.

The global economic stagnation and ongoing appreciation of the*1 In 1961, Japan's The Weekly Economist magazine published a report entitled Are Japan's Shosha in Decline?
*2 Formulated on May 10, 1973, revised as The Shosha's Corporate Code of Conduct on July 8, 1999, and revised again on June 16, 2005. See Page 42 for details.
Reference materials: Seminar: Nihon no Sogo Shosha (Second edition) (Ed. Research Division, Itochu Corporation, Pub. Toyo Keizai Shimposha)
Sogo Shosha no Kenkyu -- Sono Genryu, Seiritsu, Tenkai (Takayuki TANAKA, Pub. Toyo Keizai Shimposha)

10 Shosha Handbook 2017

Chapter 1 What Are the Shosha? 〜The Shosha's Business Model〜

2（- 1）

Trade and Business Investment
Are the Two Cornerstones

Toyota Steel Center (Japan)
Photo courtesy of
Toyota Tsusho Corporation

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Differences Between the Trade and Business Investment Businesses
Trade businessBusiness investment

Blast furnaces (manufacture)

Blast furnaces (manufacture)
Intermediary salesof iron & steel
products(trade)Intermediary salesof iron & steel
products(trade)Coil Center (business investment)*Process products in line with customer needs

Involvement in
the manufacturing
process

Sales that enhancevalue-added

Customers

Customers(manufacturers of consumer
electronics, automobiles, etc.)(manufacturers of consumer
electronics, automobiles, etc.)

Shosha revenues(commissions)

Shosha revenues(commissions + labor charges,
dividend receipts from the business)

Shosha Handbook 2017 11

Chapter 1 What Are the Shosha? 〜The Shosha's Business Model〜2（- 2）

Features of Shosha's
Business Investments
7KHIHDWXUHVRI6KRVKD VEXVLQHVVLQYHVWPHQWVFDQEHVXPPDUL]HGDVIROORZVThey cover a wide spectrum of businesses from upstream to downstream
sectors.
They utilize the Shosha’s overall capabilities based on typical functions such as
capital, managerial and organizational strengths to advance into hitherto
unfamiliar business domains. The Shosha did not have the diversiﬁed functions
they possess today from the outset. Instead, they have acquired them throughbusinesses with partners in various specialist sectors, and in many respects theinvestment experiences they have had with their partners around the world
have enhanced their overall capabilities.
While dividends and equity gains are the basis of the returns that Shosha derivefrom their business investments, they also earn commissions on trading in raw
materials, proﬁt margins on purchases and sales of facilities, and advisory fees.
They do not see business success or failure in terms of whether a single
investment deal is proﬁtable or not. There are cases where they earn proﬁts byengaging in similar investments in similar schemes with other companies, anddeploy this approach to other countries and regions.
Unlike investment banks and funds that aim for short-term capital gains, they
make strategic investments based on long-term ownership.

Business opportunities can be found anywhere invalue chain, from upstream down through midstream
to downstream
Teaming up with partners who have regional or sectoral
expertise, they share risk while enhancing theirknowledge as they venture into areas where they haveno experience.
Shosha make use of their overall capabilities, which
include providing finance and management support,
risk-taking and management functions, and trading
and organizational functions
Returns range from dividends and equity gains tocapital gains and fee revenues

They make strategic (extensive) investments that focus
more on long-term holdings rather than short-term
capital gains

12 Shosha Handbook 2017

2（- 3）The Shosha's Value Chain Strategy$YDOXHFKDLQLVDVHULHVRIDFWLYLWLHVLQZKLFKFRPSDQLHVHQJDJHLQRUGHUWRGHOLYHUYDOXHWRFXVWRPHUV8QGHUVWDQGLQJDYDOXHFKDLQLVYHU\LPSRUWDQWZKHQLWFRPHVWRXQGHUVWDQGLQJWKH
6KRVKD$YDOXHFKDLQFRPSULVHVLQLWLDWLYHVWKDWDLPIRUKLJKHUUHWXUQVE\UDLVLQJYDOXHDGGHGDQG
OLQNLQJLWWRYDULRXVEXVLQHVVHVEDVHGRQWKHNQRZOHGJHDQGLQIRUPDWLRQWKDW6KRVKDJDLQWKURXJKWKHLUHQJDJHPHQWLQZLGHO\UDQJLQJXSVWUHDPWKURXJKGRZQVWUHDPVHFWRUV7KLVFRYHUVHYHU\WKLQJIURPGHYHORSLQJDQGSURFXULQJPDWHULDOVWRPDQXIDFWXULQJSURFHVVLQJVDOHVDQGVHUYLFHV
7DNHVWHHOIRUH[DPSOH 7KH6KRVKDLQYHVWLQRZQHUVKLSULJKWVLQPLQHVLQRUGHUWRGHYHORSWKHFRDODQGLURQRUHWKDWDUHHVVHQWLDOIRUVWHHOPDQXIDFWXUH7KH\DOVRLQYHVWLQZD\VRIVXSSO\LQJWKHPLQHGUDZ
PDWHULDOVWRLURQ VWHHOPDQXIDFWXUHUVDQGHYHQLQVWHHOEXVLQHVVHVWKHPVHOYHV  ,Q DGGLWLRQ WR EX\LQJ LQVWHHO SURGXFWV IURPVWHHO PDQXIDFWXUHUV DQGVHOOLQJ WKHP WRPDQXIDFWXUHUVRIUDLOZD\UROOLQJVWRFNDQGDXWRPRELOHVDQGVKLSEXLOGHUVWKH\DGGYDOXHE\
SURFHVVLQJWKHVHSURGXFWVWRVSHFL¿FDWLRQVWKDWFXVWRPHUV¿QGHDVLHUWRXVHDQGWKURXJKWKHLU
LQYROYHPHQWLQPDQXIDFWXULQJDXWRPRELOHSDUWV 7KHLULQYROYHPHQWLQEXVLQHVVHVUHODWLQJWRHQGSURGXFWVH[WHQGVIURPDXWRVDOHVDQGOHDVLQJ
WRVDOHVDQGRSHUDWLRQVRIVKLSVDVZHOODVVDOHVRIJDVROLQHIRUYHKLFOHVDQGIXHOVIRUDLUFUDIWDQGVKLSV
7KLVSDUWLFLSDWLRQLQPXWXDOO\UHODWHGEXVLQHVVHVLQXSVWUHDPWKURXJKGRZQVWUHDPVHFWRUVJLYHV
WKHPDELUGVH\HYLHZRIWKHRYHUDOOEXVLQHVVSURFHVVHVLQYROYHGHQDEOLQJWKHPWRRIIHU¿QDQFLDOLQIRUPDWLRQDQGORJLVWLFDOIXQFWLRQVDVQHFHVVDU\7KLVLQWXUQKHOSVWKHPHQKDQFHFXVWRPHU
FRQYHQLHQFHDQGDVSLUHWRKLJKHUYDOXHDGGHG EXVLQHVV,WDOVRH[SODLQVZK\YDOXHFKDLQVDUH
VLJQL¿FDQWIRUWKH6KRVKDDQGZK\WKH\DUHEXLOGLQJYDOXHFKDLQVLQYDULRXVVHFWRUVLQFOXGLQJHQHUJ\GHYHORSPHQWIRRGVDQGWH[WLOHVThe Steel Value Chain
Procure raw
materials

Manufacture

Processing,
distribution
and sales

End user

Invest inownershiprightsCoal andiron oreBlast
furnaces,
Electric furnaces,
Single-pressure
mills

Coil centers,
Partsmanufacturing

Consumerelectronics,
Automobilemanufacturers

Rights holdings
Businessmanagement

Rights holdings
Businessmanagement

MineownershiprightsIron ore mining business (Brazil)
Photo courtesy of Itochu Corporation

Businessmanagement

Ferrocoke pilot facility reduces CO2
emissions and conserves energy (Japan)

Steel Service Center (Mexico)
Photo courtesy of Sumitomo Corporation

Photo courtesy of JFE Shoji Trade Corporation

Shosha Handbook 2017 13

Column

ColumnThat
2 Catchphrases
Summarize Shosha's Activities
Resin raw materials
Photo courtesy of Inabata & Co.

Leisure facilities
Photo courtesy of Hanwa Co.

The catchphrases used to describe the Shosha's activities havechanged with the times.
Today, "from mineral water to communications satellites" isoften used. At the beginning of the 20th century, the slogan was"from bird feed to warships," but this changed to "from ramen*1
to missiles." Following complaints that "missiles" were not goodfor the corporate image, however, "rockets" or "aircraft" wereadopted instead and used proactively.
The idea was to use a simple expression that conveyed the ideathat the Shosha handle a very wide range of products, from thesmallest to the largest. However, the message that the Shosha
handled every conceivable product unfortunately conveyed thenegative impression that they were suspicious mega corporations.
We believe this was one reason for the criticism of the Shosha*2that occurred in the 1970s (Column①).

*1 Sales of Nissin Foods' Chicken Ramen started in August 1958. The packs weighed 85g and the retail price was ¥35.
*2 Oil prices rocketed when the Fourth Arab-Israeli War broke out in 1973. The mass media and consumer groups accused the Shosha of causing the jump in prices for
petroleum products and general consumer goods by hoarding and withholding goods from sale. The top management of the larger Shosha were summoned to testify
before the Diet (Japan's parliament) as part of its intensive investigations into price rises.

ColumnCharacters and3 Shosha's
Kids' Websites

JFTC:

JFTC Kids Site
http://www.jftc.or.jp/kids/

The Shosha have worked out ways to provide simple
explanations of their involvement in our daily lives through theirwebsites. They use characters and sites created for children toenhance understanding of their activities and make them morefamiliar, as shown below.

Shoma & Osho

Characters and sites created for children
Itochu Corporation:

OthersChuta ITOH’s Big
Adventure

Kowa Company:

http://www.itochu.co.jp/ja/kids/

Kowa Kero-Koro Land
http://kr2.kowa.co.jp/

Sumitomo Corporation:

Who is Sumitomo Corporation?
http://www.sumitomocorp.co.jp/
Chuta ITOH
Chori Corporation:

Sojitz Corporation:

CHORI-KUN
http://www.chori.co.jp/topics/
CHORIkun.html

Welcome to Sojitz Wonderland!
http://sp.sojitz.com/
wonderland/

CHORI-KUN
Mitsui & Co.:

Learning from the Forests
http://www.mitsui.com/jp/ja/morikids/

14 Shosha Handbook 2017

Sojitz Wonderland

Chapter 2 The Shosha Are Active Worldwide 〜Working to Resolve Global Social Problems〜

1Working to Resolve Global
Social Problems:KDWHYHUWKHHUDWKH6KRVKDKDYHFRQWLQXHGWRUHVSRQGWRWKHQHHGVRIWKHWLPHVE\FDUHIXOO\FRQVLGHULQJWKHIXQFWLRQVDQGUROHVWKH\VKRXOGIXOILOOWRPHHWWKHQHHGVRIWKHHYHUFKDQJLQJHQYLURQPHQW7KHVDPHJRHVIRUWKHZRUOGWRGD\7KH6KRVKDFRQWULEXWHWRVRFLHW\DQGVXSSRUWWKH
OLYHVRIWKHSHRSOHRIWKHZRUOGWKURXJKWKHYDULRXVLQLWLDWLYHVRXWOLQHGEHORZ
,QWKH8QLWHG1DWLRQVOHGWKHZD\LQIRUPXODWLQJ6XVWDLQDEOH'HYHORSPHQW*RDOV 6'*V ZKLFKOLVWWKHFRPPRQVRFLDOSUREOHPVIDFLQJWKHZRUOGWKDWZHPXVWUHVROYHRQDSULRULW\EDVLV
E\,WFDOOHGRQFRPSDQLHVWRFRQWULEXWHWRDFKLHYLQJWKHVHJRDOVWKURXJKWKHLU EXVLQHVVSUDFWLFHV$VWKH6KRVKDDUHDFWLYHLQFRXQWULHVDQGUHJLRQVWKURXJKRXWWKHZRUOGDQGLQDOONLQGVRILQGXVWULDOVHFWRUVWKH\HQGHDYRUWRDFKLHYHWKHVH6'*VDQGUHVROYHFRPPRQVRFLDO SUREOHPVWKURXJKWKHLUEXVLQHVVWUDQVDFWLRQVDQGLQYHVWPHQWV$PRQJRWKHUWKLQJVWKH\VWULYHWRHQVXUHVXVWDLQDEOHXVHRIUHVRXUFHVGHYLVHUHVSRQVHVWRFOLPDWHFKDQJHGHYHORSUHJLRQDOHFRQRPLHVWDNHKXPDQULJKWVDQGODERUFRQGLWLRQVLQWRDFFRXQWDQGSUHVHUYHELRORJLFDOGLYHUVLW\Stable Supplies of Resources
and Energy

Lead Global Expansion

Stable and Secure Supplies
of Safe Food

Support More Comfortable
Lifestyles

Achieve a Sustainable
Society

Preparing for the Aging
Society

Establish Social Infrastructuresin Japan and Overseas

Sustainable Development Goals (SDGs)

Shosha Handbook 2017 15

Chapter 2 The Shosha Are Active Worldwide 〜The Roles of the Shosha〜2（- 1）

Stable Supplies of Resources
and Energy (Energy)* Take-up of oil and natural gas underJapanese corporate equity interests
as a proportion of total imports anddomestic production volume.

6LQFH-DSDQGHSHQGVRQRYHUVHDVVRXUFHVIRUVXSSOLHVRIPLQHUDOV LURQRUHQRQIHUURXVPHWDOVUDUHPHWDOVHWF DQGHQHUJ\ RLOFRDOQDWXUDOJDVHWF WKH6KRVKDKDYHDOZD\VSOD\HGDNH\UROH
LQWKHLUSURFXUHPHQW
7KH6KRVKDH[SORUHUHVRXUFHVDWWKHLURZQULVNQHJRWLDWHZLWKWKHJRYHUQPHQWVRIWKHFRXQWULHVWKDWRZQWKHUHVRXUFHVDQGWKHFRPSDQLHVZLWKULJKWVKROGLQJVVHFXUHWKHLURZQULJKWVWKURXJKLQYHVWPHQWVDQG¿QDQFLQJHWFDQGHYHQSDUWLFLSDWHGLUHFWO\LQPLQHRSHUDWLRQV$WWKHVDPHWLPH
WKH\VHHNWRVSUHDGULVNE\GLYHUVLI\LQJWKHLUVXSSOLHUVDQGFRQWULEXWHWRVWDEOHSULFHVDQGVXSSOLHV
E\FRQFOXGLQJORQJWHUPFRQWUDFWV
2QWKHRQHKDQGWKH\H[SDQGWKHDUHDVIURPZKLFKWKH\SURFXUHUHVRXUFHVLQFRRSHUDWLRQZLWKVWURQJRYHUVHDVSDUWQHUV2QWKHRWKHUKDQGDWWKHGLVWULEXWLRQOHYHOWKH\EXLOGEURDGO\EDVHGYDOXHFKDLQVWKDWH[WHQGIURPUH¿QLQJDQGWUDGLQJWRWKHPDQDJHPHQWRI/3*VDOHVRXWOHWVDQG¿OOLQJVWDWLRQV
7KHIROORZLQJJOREDOPDSVKRZVWKHUHVRXUFHDQGHQHUJ\ULJKWVKHOGE\WKHVHYHQ6KRVKD,W
FOHDUO\VKRZVKRZWKHLQWHUHVWVRIWKH6KRVKDH[WHQGIURPWKH0LGGOH(DVWWRWKH 1RUWK6HD
$IULFD6RXWKHDVW$VLD$XVWUDOLDDQGWKH*XOIRI0H[LFR$FFRUGLQJWR0(7,-DSDQZDVUHVSRQVLEOHIRURILWVRZQRLODQGQDWXUDOJDVGHYHORSPHQW*LQ¿VFDOLQFOXGLQJLPSRUWVIURPWKHHTXLW\LQWHUHVWVRIWKH6KRVKD

Energy Resources Map
NorwayNorth Sea

RussiaRussia

16.1%

12.4%

UK North
Sea

16m t

Azerbaijan

Russia(Sakhalin)
UK
Italy

Middle East

32.4%
Cote
d'Ivoire

31.1bn m3
MyanmarThailand
Brunei

Middle East
Gabon

25.7bn m3
41.8bn m3
Indonesia

17.4%

Equatorial Guinea

10.5bn m3

157m tAsia &
Oceania

Malaysia

AngolaOil & gas
Crude Oil

Indian Ocean

Shale gas & oil

Papua New Guinea

Australia

15.7%

Mozambique

Natural gas/LNG
Oil, share of
production volume
Natural gas, share of
production volume
Principal oil import routes
Principal natural gas
import routes
16 Shosha Handbook 2017

Iraq

Egypt

Abu Dhabi

Qatar

New ZealandOman

Gas production
facility(Thailand)
Photo courtesy of
Mitsui & Co.

The LNG Value Chain
Liquefaction facilities

Development

Logistics/LNG tankers

Exploration &development

LNG
production

Charterage/
operations

Rights holdings
Business investment

Business investment

Transactions
Business investment

Sales
Japan/
overseas

Transactions

Upstream

Downstream

99.9%

Crude
oil

Offshore Jackup Drilling
Rig Charter Business(Egypt)Methanol plant that uses
natural gas (Indonesia)
Photo courtesy of Sojitz Corporation

97.1%(import dependence)(import dependence)

LNG

Principal
import sources:
Saudi Arabia,
UAE, Qatar

Principal
import sources:
Malaysia,
Australia, Qatar

Principal Oil-producing Countries

Photo courtesy of
Toyota Tsusho Corporation

USA

Other

13%

18%
Qatar

2%
Angola

USA

2%

13.0%

MexicoBrazil13%

m B/D(2015)

3%

Russia

12%

3%

22.0%

8m t

91.7

2%
3%

Nigeria

USA

CanadaNorwaySaudi Arabia

Kuwait UAE
Venezuela

3%

4%

3%

Canada

Iraq

Iran

4%

4% China 5%
5%USA

Gulf of Mexico

5m t

Principal Natural Gas-producing
Countries

Venezuela
USA

22%

Other

Peru

29%
Australia
Brazil

3,539

2%

bn m3
(2015)

Malaysia

Russia

16%

2%
Iran
Turkmenistan

2%

China

Indonesia

LNG shipping facility (Indonesia)
Photo courtesy of Mitsubishi Corporation

Note
This!

2%
Saudi Arabia

Qatar

5%

4% Canada 5%
5%3% Norway 3%

Japan depends on the Middle East for much of its crude oil imports, but the Shosha's oil development
rights extend widely, to the North Sea, Africa, Southeast Asia, Australia, and the Gulf of Mexico.
Their natural gas rights also extend to Africa, Southeast Asia, and Australia, not just the Middle East.
Source: Prepared by JFTC based on Annual Reports (Integrated Reports), websites and BP statistics

Shosha Handbook 2017 17

Chapter 2 The Shosha Are Active Worldwide 〜The Roles of the Shosha〜2（- 1）

Stable Supplies of Resources
and Energy (Metal Resources),QDGGLWLRQWRHQHUJ\UHVRXUFHVVXFKDVRLODQGQDWXUDOJDVWKH6KRVKDKDQGOHPLQHUDOUHVRXUFHVVXFKDVFRDODQGLURQRUHZKLFKDUHHVVHQWLDOIRUSURGXFLQJVWHHO7KH\DOVRKDQGOHEDVHPHWDOVLQFOXGLQJDOXPLQXPFRSSHUDQGOHDGDVZHOODV SUHFLRXVPHWDOVDQGWKHUDUHPHWDOV XVHGLQYDULRXV LQGXVWULHV LQFOXGLQJ OLWKLXP YDQDGLXP FREDOW QLFNHO QLRELXP PRO\EGHQXP DQGWXQJVWHQ
7KH6KRVKDHQGHDYRUWRHQVXUHORQJWHUPVWDEOHVXSSOLHVRIVXFKUHVRXUFHVE\VHFXULQJPLQLQJULJKWVDQGHQJDJLQJLQWKHVPHOWLQJ UH¿QLQJEXVLQHVV
7KHIROORZLQJPDSVKRZVKRZWKHULJKWVWRPHWDOUHVRXUFHVKHOGE\WKH6KRVKDDUHGLVWULEXWHG

Metal Resources Map

Kazakhstan
Mongolia

Portugal
China(Tungsten)

Philippines(Nickel,Cobalt)Madagascar

Indonesia(Nickel,Cobalt)South Africa
Mozambique(Nickel,Vanadium)
Australia

Iron ore business (Australia)
Photo courtesy of Mitsui & Co.

18 Shosha Handbook 2017

Coal

100%

100%

(import dependence)(import dependence)

Iron ore Principal import sources:

Principal import sources:
Australia, Indonesia, Russia

Australia, Brazil, Republic ofSouth Africa

Aluminum

Silver

Stainless steel raw
materials (ferrochrome)

Zinc, lead

CopperRare metals

100%

Copperimport sources:
concentrate Principal
Chile, Indonesia, Peru
(import dependence)

Iron ore
Coal
UraniumGold
Mining of silver, zinc, lead (Bolivia)
Photo courtesy of Sumitomo Corporation

USA（Alaska）

CanadaUSA(Molybdenum)

Colombia
MexicoBolivia
Peru

Chile

Brazil(Niobium)

Argentine(Lithium)

Lithium Mining Project (Argentina)
Photo courtesy of Toyota Tsusho Corporation

Source: Prepared by JFTC based on Annual Reports (Integrated Reports), and websites

Shosha Handbook 2017 19

Chapter 2 The Shosha Are Active Worldwide 〜The Roles of the Shosha〜2（- 2）

Stable and Secure Supplies of
Safe Food$FFRUGLQJWRWKH8QLWHG1DWLRQVWKHJOREDOSRSXODWLRQZDVRYHUELOOLRQSHRSOHLQDQG
LVH[SHFWHGWRLQFUHDVHJRLQJIRUZDUGHVSHFLDOO\LQWKHHPHUJLQJHFRQRPLHV%\LWLVIRUHFDVWWRUHDFKELOOLRQZKLFKZLOOOHDGWRDQLQFUHDVHLQGHPDQGIRUIRRG
$VLQFRPHOHYHOVULVHLQWKHHPHUJLQJHFRQRPLHVPRUHRYHUGHPDQGIRUKLJKHUTXDOLW\GLHWVZLOOOLNHO\LQFUHDVHZKLOHWKHLQJUHGLHQWVRIWKHGLHWVZLOODOVRFKDQJHZLWKJUHDWHUGHPDQGIRUPHDWV$WWKHVDPHWLPHZHH[SHFWSHRSOHWREHFRPHPRUHFRQFHUQHGDERXWIRRGTXDOLW\DQGIRRGVDIHW\
7RHQVXUHVWDEOHJOREDOIRRGVXSSOLHVWKH6KRVKDZLOOZRUNRQUDLVLQJDJULFXOWXUDOSURGXFWLYLW\GLYHUVLI\VXSSOLHUVDQGEXLOGPRUHUHOLDEOHSURFXUHPHQWURXWHVWKXVSOD\LQJDUROHLQHI¿FLHQWO\PDWFKLQJIRRGVXSSO\DQGGHPDQGZKLFKDUHRIWHQ XQHYHQO\GLVWULEXWHGIURPRQHUHJLRQWRDQRWKHU

Food Business Map

Salmon & trout
aquaculture(Norway)

Agricultural
products, poultry
meat and pork,
eggs, blueﬁn tunaaquaculture
Fully-closed life-cycle
aquaculture of blueﬁn tuna
(Japan)(Japan)Grain collection &shipping and exports(Russia)

Photo courtesy of
Toyota Tsusho Corporation

Shrimpaquaculture

Flourmilling(Viet Nam)

(Thailand,
China, etc.)

European,Middle Eastern,
AfricanmarketsAsianmarkets

Sugar
Vegetable oil & fat
manufacturing(Thailand)(India)Banana & pineapple
plantations(The Philippines)

Grain collection & shipping,and exports(Australia)

Beef cattle fattening

Dairy products(Australia)(New Zealand)

Dole businessPhoto courtesy of Itochu Corporation

20 Shosha Handbook 2017

Improving agricultural
productivity

Strengthen food procurement
and supply capacity

Supply agrochemicals, fertilizers,
agricultural materials

Participate in the agricultural
production business, fisheryproduct aquaculture business, etc.
Improve grain collection & shipping,and sales networks

Ensure safety and quality
Enhance traceability

Example of Food Value Chain
Production &procurement

Primary
processing

Farm management
Aquaculture business
Grain production
Grain collection& shipping
Agrochemicals& fertilizers
Agricultural materials

Oils & fats
Animal feeds
Flour milling
Sugar manufacture
Dairy products
Marine productprocessing

Secondaryprocessing

Intermediate
distribution

Marine products
Meats
Sesame oil
Edible oils
Beverages
Fruit & vegetables

Processed food
Meat distribution
Food distribution
Confectionery/
alcoholic beverages

Retailing

Convenience stores
Supermarkets
Mass retailers
Food service industry

Salmon & trout
aquaculture(Canada)Pig farming
business

Beef,pork, wheat,barley,soybeans,
corn(USA, Canada)
Grain export terminal (USA)Photo courtesy of Marubeni Corporation

Grain collection &shipping, and exports

Edible oil
reﬁning

(USA)

(USA)

Agricultural
production(Brazil)

Advance into the smart agricultureﬁeld (Japan)
Photo courtesy of Kanematsu CorporationCorn, soybeans,soybean cake,green coffee beans

Salmon & trout
aquaculture(Chile)Coffeeproduction

Salmon aquaculture business (Chile)(Brazil)Grain collection &shipping and exports(Brazil, Argentine)

Photo courtesy of Mitsui & Co.

Suppliers
End-users(consumers)
Suppliers &end-users(consumers)
Perishables

Principal suppliers

Raw materials

USA, Australia, Brazil, Argentine, etc.
Source: Prepared by JFTC based on Annual Reports (Integrated Reports), websites; Brains magazine (July 20 & July 27, 2016 editions; Brain Trust Co.)

Shosha Handbook 2017 21

Chapter 2 The Shosha Are Active Worldwide 〜The Roles of the Shosha〜2（- 3）

Achieving a Sustainable Society

7KH6KRVKD VWRS SULRULW\PDQDJHPHQWLVVXHLVWKHUHDOL]DWLRQRIDVXVWDLQDEOHVRFLHW\WKDWSURPRWHVKDUPRQ\EHWZHHQVRFLDODQGHFRQRPLFGHYHORSPHQWRQWKHRQHKDQGDQGWKHJOREDOHQYLURQPHQWRQWKHRWKHU:KHQFRQWHPSODWLQJLQYHVWPHQWVLQFRPSDQLHVRUGHYHORSPHQWSURMHFWVVXFKDVLQIUDVWUXFWXUDOLPSURYHPHQWVWKHUHIRUHGHFLVLRQPDNLQJLQYROYHVFDUHIXOFRQVLGHUDWLRQRI
WKHLPSDFWRQWKHHQYLURQPHQWDQGVRFLHW\
7KHDGRSWLRQRIWKH3DULV$JUHHPHQWRQ PHDVXUHV WRGHDO ZLWKFOLPDWHFKDQJHIURPRQZDUGVKDVSURYLGHGDQRSSRUWXQLW\WRDLPIRUDWUDQVLWLRQWRDJOREDOORZFDUERQVRFLHW\7KLVKDVHQFRXUDJHGWKHLQFUHDVLQJO\ EURDGO\EDVHGLQWURGXFWLRQRIPHDVXUHVWRGHDOZLWKFOLPDWHFKDQJH XVLQJ UHQHZDEOH HQHUJ\ UHVRXUFHV VXFK DV JHRWKHUPDO VRODU ZLQG DQG VPDOOVFDOHK\GURHOHFWULFSRZHUJHQHUDWLRQ$OORIWKHVHHPLWORZHUYROXPHVRIWKHJUHHQKRXVHJDVFDUERQGLR[LGHWKDQWKHUPDOSRZHUJHQHUDWLRQXVLQJRLOFRDODQGRWKHUIRVVLOIXHOV,QDGGLWLRQWRDGRSWLQJ

Global Natural Energy Generating
Capacity in 2015
(Source: Prepared by JFTC based on the Renewables 2015 Global Status Report - REN21)

IEA forecast 210 〜（2030）
340

40 〜 490 〜 40 〜 920 〜
50
1,000
120
2,700
13
227
5
433

NorwayPower generation
capacity (Total)

Wind

Concentrated
Solar Power
(CSP)

Solar

Geothermal

Biomass

Unit: GW

The Main Overseas Renewable
Energy Power Generation Projects in
Which the Shosha Are Involved

World

106

785

EU28

36

1

95

2

142

276

BRICS

31

0

50

0

180

262

China

10

0

44

0

145

199

USA

17

4

26

2

74

122

Germany

7

0

40

0

45

92

Japan

5

1

34

0

3

43

India

6

0

5

0

25

36

Italy

4

1

19

0

9

33

Spain

1

0

5

2

23

32

China

JordanThailand

Kenya
Malaysia

South Africa
Note: Totals are not necessarily consistent because fractions of the displayed units
have been rounded

Solar/solar heat
power generation
Wind power
generation (including
oﬀshore wind power
generation)
Geothermal power
generation
Biomass power
generation

Offshore wind farm (UK)
Photo courtesy of
Marubeni Corporation

22 Shosha Handbook 2017

Belgium
Netherland
PolandGermany

UK

Portugal

Spain

FranceItaly

LQLWLDWLYHVIRUEURDGHQLQJHOHFWULFLW\VXSSOLHVXVLQJUHQHZDEOHHQHUJ\WKH6KRVKDDUHH[SDQGLQJWKHLUXVHRIK\GURJHQHQHUJ\ZKLFKLVRIWHQGXEEHGWKHXOWLPDWHFOHDQHQHUJ\VRXUFH:RUNLQJRQERRVWLQJWKHVSUHDGRIHOHFWULFFDUVDQGRWKHUQH[WJHQHUDWLRQYHKLFOHVDVZHOODVWKHGHYHORSPHQW
RIVPDUWFLWLHVWKH\DUHLQFUHDVLQJWKHLULQYROYHPHQWLQYDULRXVQHZEXVLQHVVHVLQUHDGLQHVVIRUWKH
WUDQVLWLRQ WR D ORZFDUERQ VRFLHW\7KURXJK VXFK EXVLQHVVHV DV ZHOO DV VXVWDLQDEOH IRUHVWPDQDJHPHQWLQYROYLQJDIIRUHVWDWLRQDQGWKHFRQVXPHUHOHFWURQLFVUHF\FOLQJEXVLQHVVWKH\DUHWKXVDLPLQJWRUHDOL]HDUHF\FOLQJEDVHGHFRQRPLFVRFLHW\$FFRUGLQJWRWKH5HQHZDEOH(QHUJ\3ROLF\1HWZRUNIRUWKHVW&HQWXU\ 5(1 DQRQSUR¿W
RUJDQL]DWLRQKHDGTXDUWHUHGLQ3DULVJOREDOUHQHZDEOHSRZHUFDSDFLW\ H[FOXGLQJK\GURHOHFWULF
SRZHU DPRXQWHGWRJLJDZDWWV *: LQ VHHWDEOHRQOHIWKDQGSDJH &XUUHQWO\ZLQGSRZHUKDVWKHKLJKHVWUHQHZDEOHSRZHUFDSDFLW\JHQHUDWLQJDURXQGRIWKH
WRWDOIROORZHGE\VRODUSRZHUZLWKDURXQG%\FRXQWU\&KLQDDFFRXQWVIRUE\IDUWKHODUJHVWVKDUHRIUHQHZDEOHSRZHUFDSDFLW\ZLWKRYHURIWKHWRWDOODUJHO\EHFDXVHRILWVVXEVWDQWLDOZLQGDQGVRODUSRZHUJHQHUDWLQJFDSDFLW\7KH8QLWHG6WDWHVDQG*HUPDQ\UDQNVHFRQGDQGWKLUG%RWK KDYHVXEVWDQWLDO ZLQGDQGVRODU SRZHUJHQHUDWLQJFDSDFLW\ ZKHUHDVVRODU SRZHULV WKHPDLQVWD\LQIRXUWKUDQNHG-DSDQ
7KHJOREDOPDSEHORZVKRZVWKHPDLQRYHUVHDVUHQHZDEOHHQHUJ\SRZHUJHQHUDWLRQSURMHFWVLQZKLFKWKHVHYHQ6KRVKDDUHLQYROYHG
Solar power generation(Peru)
Photo courtesy of Sojitz Corporation

CanadaTotal power
generation
capacity

13,9403,231

Equity power
generation
capacity
Korea

MW

USA

MW

(seven Shosha total)
MexicoPhilippines
Indonesia

USA (Hawaii)

Jamaica

Peru

Australia
Chile

Uruguay

Geothermal power generation(Indonesia)
Photo courtesy of Mitsubishi Corporation

Note
This!

The equity renewable power generation capacity of 3,231MW is approximately equivalent to half thecapacity of The Shikoku Electric Power Company's generating facilities.
Including thermal and hydroelectric power, the overseas equity power generation capacity of the seven
Shosha amounts to 36,505MW. This is the equivalent of 20% of the overall capacity of the power
generating facilities of Japan's electric power suppliers, which totaled 228,479MW as of 2010, prior to theGreat East Japan Earthquake.
Reference: 1GW = 1,000MW (=1,000,000kW)
Source: Prepared by JFTC based on Brains magazine (February 10, 2016 edition; Brain Trust Co.); Annual Reports (Integrated Reports), etc.

Shosha Handbook 2017 23

Chapter 2 The Shosha Are Active Worldwide 〜The Roles of the Shosha〜2（- 4）

Establishing Social Infrastructures inJapan and Overseas'HPDQGIRUWKHGHYHORSPHQWDQGFRQVWUXFWLRQRIHOHFWULFSRZHUZDWHUUDLOZD\WHOHFRPPXQLFDWLRQV
DQGRWKHUIDFLOLWLHVWKDWFRQVWLWXWHWKHEDVHRIVRFLHWDOLQIUDVWUXFWXUHLVULVLQJZRUOGZLGH(VWLPDWHGDWDQ
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XQHYHQUHJLRQDOGLVWULEXWLRQRIZDWHUUHVRXUFHVLVH[DFHUEDWHGE\IDFWRUVOLNHSRSXODWLRQJURZWKDQG
FOLPDWHFKDQJH3URJUHVVLQXUEDQL]DWLRQFKDUDFWHUL]HGE\ULVLQJFRQFHQWUDWLRQVRISRSXODWLRQLQFLWLHVDV
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-DSDQ%DQNIRU,QWHUQDWLRQDO&RRSHUDWLRQ -%,& DQG1LSSRQ([SRUWDQG,QYHVWPHQW,QVXUDQFH
1(;, DVZHOODVPDQXIDFWXUHUVWKDWSURYLGHHTXLSPHQWHQJLQHHULQJDQGFRQVWUXFWLRQFRPSDQLHVWKDWVXEFRQWUDFWFRQVWUXFWLRQZRUNDQGSXEOLFXWLOLWLHVWKDWSXUFKDVHVHUYLFHV7KH6KRVKDSD\
DWWHQWLRQWRDOODVSHFWVRIVXFKSURMHFWVDQGSOD\DUROHLQVHWWOLQJFRQIURQWDWLRQVEHWZHHQLQWHUHVWHG
SDUWLHVZKRVHYHVWHGLQWHUHVWVPD\FODVK,QWKHFDVHRIVRPHSRZHUJHQHUDWLRQSURMHFWVIRUH[DPSOHWKH6KRVKDVHOHFWWKHRSWLPDOORFDWLRQVDQG
WKHPRVWFRPSHWLWLYHPDQXIDFWXUHUVRISRZHUJHQHUDWLRQIDFLOLWLHVWKURXJKWKHLUGRPHVWLFDQGRYHUVHDVQHWZRUNV7KH\DOVRWUDQVSRUWDQGLQVWDOOJHQHUDWLQJIDFLOLWLHVJHWLQYROYHGLQSRZHUSODQWFRQVWUXFWLRQDQG
YHQWXUHLQWRPDQDJLQJSRZHUVWDWLRQVWKHPVHOYHVDVLQGHSHQGHQWSRZHUSURGXFHUV ,33 
7KHIROORZLQJZRUOGPDSGHSLFWVWKHPDLQRYHUVHDVLQIUDVWUXFWXUHSURMHFWVLQZKLFKWKH6KRVKDSDUWLFLSDWH

Map Showing Distribution of Power Generation Projects
TurkeyGermany
Belgium
UK
Pakistan
Kuwait

China

Spain

CanadaPortugal

USA

Korea
MexicoBahrainTaiwanMoroccoTunisia

India
JordanHong Kong

UAE

Jamaica

Qatar Oman
Saudi
Sri Lanka
ArabiaGhana

BrazilTanzania

Mozambique
South Africa

Peru

PuertoRico
TrinidadandTobagoPhilippines
Laos

Australia
Myanmar

Chile

Viet Nam
Cambodia

ThailandIndonesia
Malaysia
Singapore

Independent Water and Power
Producer project (Kuwait)
Photo courtesy of Sumitomo Corporation

24 Shosha Handbook 2017

Thermalpower plant
Hydroelectric
power plants

Water business/water treatment plant (UK)

Passenger transportation business/East Anglia (UK)

Photo courtesy of Mitsubishi Corporation

Photo courtesy of Mitsui & Co.

Map Showing Distribution of Other Infrastructure Projects

UkraineMongolia

UK
Uzbekistan
Spain
Portugal

MyanmarViet Nam
China

TurkeyUSA

Philippines
Brazil

Korea

India

Thailand
Egypt

UAE
Oman

Ghana

Saudi
ArabiaMexicoQatar

Singapore
Indonesia

Bangladesh
Mozambique

Airports
Subways &urban railways

Chile

Bridges

Water supply andsewerage systems

Ports

Desalination

Australia

Urban Railway in Bangkok (Thailand)

New Ulaanbaatar International Airport Construction Project(Mongolia)

Photo courtesy of Marubeni Corporation

Photo courtesy of Mitsubishi Corporation

Source: Prepared by JFTC based on Annual Reports (Integrated Reports), websites; Brains magazine (February 10, 2016 edition; Brain Trust Co.)

Shosha Handbook 2017 25

Chapter 2 The Shosha Are Active Worldwide 〜The Roles of the Shosha〜2（- 5）

Leading Global Expansion*OREDOL]DWLRQ LV SURPSWLQJ EXVLQHVVHV WR DFFHOHUDWH WKHLU DGYDQFHV LQWR UDSLGO\ JURZLQJ
HPHUJLQJHFRQRPLHV +RZHYHU YHQWXULQJRYHUVHDV LQHYLWDEO\ LQYROYHV OHJDO SURFHGXUHVIRU
VHFXULQJODQGDQGUHJLVWHULQJFRPSDQLHVDVZHOODVKLULQJ
7KH 6KRVKD DUH HQJDJHG LQ WKH LQGXVWULDO SDUNV EXVLQHVV LQFOXGLQJ VDOHV RI ORWV IRU WKHFRQVWUXFWLRQRIIDFWRULHVDIWHUVHFXULQJDQGSUHSDULQJODQGDQGSUHSDULQJWKHHOHFWULFLW\VXSSOLHVZDWHUVXSSOLHVVHZHUDJHV\VWHPVDQGRWKHULQIUDVWUXFWXUHQHFHVVDU\IRUFRPSDQLHVPRYLQJLQWRWKH
SDUNV7KHVWUHQJWKVRIWKH6KRVKDGRQRWOLHVLPSO\LQKDQGOLQJWKHSK\VLFDOHOHPHQWVRIWKHLQIUDVWUXFWXUH7KH\DOVRH[FHOLQIXOO\ PRELOL]LQJ WKHLUIXQFWLRQVDQG NQRZKRZ WR SURYLGHRSHUDWLRQDOVXSSRUWLQDYDULHW\RIDUHDV7KHVHUDQJHIURPREWDLQLQJSHUPLWVDQGOLFHQVHVIRU
VHWWLQJXSORFDOVXEVLGLDULHVWRSURYLGLQJQRWL¿FDWLRQVDQGFRXQWHUPHDVXUHVUHODWLQJWRIUHTXHQWOHJDODPHQGPHQWVFRQFHUQLQJKLULQJDQGODERUPDQDJHPHQW
7KH\DOVRVXSSRUWPDQXIDFWXULQJLQIRUHLJQFRXQWULHVLQYDULRXVZD\V7KHVHLQFOXGHDUUDQJLQJ
IRUFRQVWUXFWLRQFRPSDQLHVDQGFRQVWUXFWLRQPDWHULDOVIRUIDFWRU\EXLOGLQJVSURFXUHPHQWLPSRUWVFXVWRPVFOHDUDQFHDQG WUDQVSRUWDWLRQ SURYLGLQJ UDZ PDWHULDOVLPSRUWLQJ SDUWVDQGRWKHUUHVRXUFHVQHFHVVDU\IRUSURGXFWLRQSURYLGLQJMXVWLQWLPHORJLVWLFDOVHUYLFHVLQFOXGLQJWKHXVHRIWKHLURZQZDUHKRXVHVDQGSURGXFWPDUNHWLQJDQGFOLHQWHOHGHYHORSPHQW7KH\DOVRSURYLGHUHQWDOSODQWVIRUVPDOOVFDOHEXVLQHVVHV
7KH¿JXUHVRQWKHULJKWKDQGSDJHOLVWWKHLQGXVWULDOSDUNVLQHLJKW$VLDQFRXQWULHVLQZKLFKWKH
VHYHQ 6KRVKDDUHWKHSULQFLSDOHQWLWLHVThe Main Roles of the Shosha in the Industrial Parks BusinessLand acquisitions
Infrastructuralimprovement

Provide services

Transformer substations
Sewage & water treatment plants
Main roads
Rental plants)6VXSSRUW：Cooperate in research, provide information
6XSSRUWFRPSDQ\ ：Investment procedures, licensing procedures for plant/
company start-up
 VWDUWXSV2SHUDWLRQDOVXSSRUW ：Hiring and labor management; safety & security; taxation;accounting; foreign exchange controls; export/importprocedures; local procurement; industrial waste disposal

Thilawa Special Economic Zone (Myanmar)
Photo courtesy of Marubeni Corporation

26 Shosha Handbook 2017

Name

Area (ha) Company name

Bangalore 1

12

Toyota Tsusho
Corporation

Bangalore 2

22

Chennai------

Toyota Tsusho
Corporation
Toyota Tsusho
Corporation

17

Toyota Tsusho
Corporation

MandalIndustrial Park
Sojitz-Motherson
Industrial Park

SojitzCorporation

115

Name
DalianIndustrial Estate
China-Singapore
Suzhou Industrial Park

Area (ha)Company name217

Marubeni
Corporation

26,000Mitsubishi
Corporation

Yulin Business Park

320*
Approx. 19.2
(Shanghai),Approx. 4.6(Tianjin)*

Mitsui & Co.

China Logistics
CenterName
AMATA (Vietnam)
Industrial Park
Vietnam Singapore
Industrial Park
(VSIP)
Thang Long
Industrial Park Ⅰ
Long Binh Techno
Park

Mitsui & Co.

China

India

(Total:Approx.
26,560ha)(Total:166ha)

Area (ha)Company name700

ItochuCorporation

500

Mitsubishi
Corporation

274

Sumitomo
Corporation

100

SojitzCorporation

VSIP Binh DuongApprox.
2,045

Mitsubishi
Corporation

Thang Long
Industrial Park Ⅱ

346

Sumitomo
Corporation

VSIP Bac Ninh

Approx. 700

Mitsubishi
Corporation

Approx.
1,600
Approx.
2,866

Mitsubishi
Corporation

270

SojitzCorporation

Area (ha)Company name155

Marubeni
Corporation

460

Mitsubishi
Corporation

500

Marubeni
Corporation

448

Sumitomo
Corporation

VSIP Hai Phong
VSIP Quang Ngai

Viet NamLong Duc Industrial
Park

Mitsubishi
Corporation(Total:Approx.
9,400ha)Myanmar(Total:Approx.
400ha)
Name

Philippines
Area
(ha)

(Total:1,563ha)Company
nameMitsubishi
Thilawa
Corporation,
Special Approx. Marubeni
Corporation,
Economic 400
Sumitomo
Zone
Corporation

NameFirst Cavite
Industrial Estate
LagunaTechnopark
Lima Technology
CenterFirst Philippine
Industrial Park

Thailand(Total:10,440ha)
Name

Name
Lad Krabang
Industrial Estate
Amata Nakorn
Industrial Estate
Amata Nakorn
Industrial Estate
Amata City
Industrial Estate
Amata City
Industrial Estate
Eastern Seaboard
Techno-Park

Area (ha) Company name200

Marubeni
Corporation

4,000

ItochuCorporation

Cambodia(Total:364ha)

Area (ha) Company nameIndonesia

MM 2100

817

Marubeni
Corporation(Total:5,252ha)East Jakarta Industrial
Park

320

Sumitomo
Corporation

Suryacipta City of Industry

1,400

Sumitomo
Corporation

1,400

ItochuCorporation

15

Toyota Tsusho
Corporation

1,300

SojitzCorporation

Karawang International
Industrial City
TT Techno-Park
Indonesia
Greenland International
Industrial Center (G.I.I.C.)

2,480

Sumitomo
Corporation

Name

2,400

ItochuCorporation

Phnom Penh Special
Economic Zone

360

Sumitomo
Corporation

1,360

Sumitomo
Corporation

Techno Park Poipet

4

Toyota Tsusho
Corporation------

Toyota Tsusho
Corporation

Note: Projects in individual countries are listed in order of establishment date; including sales agency activities.
Please check individual company websites for information on recent developments.

Totals：Approx.

Area (ha) Company name54,200ha(eight countries)(approximately equal to the area of the 23 wards of Tokyo, around 61,900ha)
Source: Prepared by JFTC based on Brains magazine (May 13, 2015 edition; Brain Trust Co.)* Excerpted from websites

Karawang International Industrial City (Indonesia)

Thang Long Industrial Park (Viet Nam)

Photo courtesy of Itochu Corporation

Photo courtesy of Sumitomo Corporation

Shosha Handbook 2017 27

Chapter 2 The Shosha Are Active Worldwide 〜The Roles of the Shosha〜2（- 6）

Supporting More Comfortable
Lifestyles

6LQFH WKH 6KRVKDRIWHQ SURYLGH PDQ\ SURGXFWVDQGVHUYLFHVIRUFRQVXPHUV WKURXJK MRLQW
YHQWXUHV DQG RWKHU FRRSHUDWLYH DUUDQJHPHQWV ZLWK LQYHVWHHV DQGRWKHU SDUWQHUV FRQVXPHUVIUHTXHQWO\EX\VXFKSURGXFWVDQGVHUYLFHVZLWKRXWUHDOL]LQJWKDWWKH6KRVKDDUHLQYROYHG
,QIDFWWKH6KRVKDDUHHQJDJHGLQDOPRVWHYHU\DVSHFWRIGDLO\OLIHIURPFORWKLQJIRRGDQGGZHOOLQJVWRHYHU\GD\OLYLQJDQGHQMR\PHQWWKHUHE\FRQWULEXWLQJWRWKHUHDOL]DWLRQRIPRUHFRPIRUWDEOHOLIHVW\OHV

Principal areas of focus:
Convenience stores, supermarkets
Food services, foreign fashion brands
Satellite broadcasting & cable TV, movie production & distribution,
anime content
Ofﬁce buildings, real estate (residential), shopping centers
Car-sharing, electricity retail in Japan
7KH\DOVRRSHUDWH79VKRSSLQJDQGRQOLQHVKRSSLQJVHUYLFHVDVZHOODVLQVWRUHVDOHVRISURGXFWVHigh-performance materials(ofﬁcial uniforms and sportswear forJapan's Olympic team)

Cable TV business (Jupiter Telecommunications)Photo courtesy of Chori Corporation

Photo courtesy of Sumitomo Corporation

Large Mixed-Use Redevelopment Project in Downtown
Yangon (Myanmar)

Shopping centers (Mallage Shobu)

Material provided by Mitsubishi Corporation

Photo courtesy of Sojitz Corporation

28 Shosha Handbook 2017

Denim brand

Iwatani hydrogen refueling station, Morinomiya, Osaka
Summit, Seven & i
Holdings, Sotetsu
Rosen, Tobu Store,
Mammy Mart, United
Super Markets
Holdings, FamilyMart
UNY Holdings, Life
Corporation, Lawson

Photo courtesy of NIPPON STEEL &SUMIKIN BUSSAN CORPORATIONGrand Marche,
Jupiter Shop Channel,
MAGASeek,
BookLive!,
QVC Japan

Photo courtesy of Iwatani Corporation

Meal services,car-sharing,
online English
conversation
services, welfare
services

Convenience
stores&supermarkets
TV & online
shopping

OthersNippon Mobile
Hydrogen Station
Services

KFC、
Soup StockTokyo

Food service
chains

Fukuske,
Admiral,GELANOTS

Electricity
retailThe Shosha’s
Principal
Consumer-oriented
Businesses

Urban
development& real estate

Brandedfashion goods

Broadcasting&
video services
Satellite
broadcasting& CATV, movie
production &distribution

ICT
infrastructureservices

Housing & officebuilding development,
shopping centers,
smart cities, Mixeduse development“Global Gate complex“High-speed
communications, salesof portable terminals &circuits, Internet-related
services, IT solutions,
IoT

Brand goods store (Orobianco)
Photo courtesy of Itochu Corporation

Shosha Handbook 2017 29

Chapter 2 The Shosha Are Active Worldwide 〜The Roles of the Shosha〜2（- 7）

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Deodorant fabrics

Hospital under IHH (Singapore)

Photo courtesy of CBC

Photo courtesy of Mitsui & Co.

Consumer Healthcare Products(OTC drugs, Life support products)

Health care business(Karada Station: health care consultation services)

Photo courtesy of Kowa Company

Photo courtesy of Toyota Tsusho Corporation

30 Shosha Handbook 2017

Medical Treatment, Pharmaceuticals,and Healthcare-related Businesses
Medical machinery,equipment,
and materials

Development, manufacture, imports, sales & leasing
Clinical research outsourcing businessPharmaceuticals

Drug design support, pharmaceuticals development
Pharmaceutical ingredients/intermediates/formulations/diagnostic products, cosmetic raw materials
Generic drug manufacturing & sales
Health insurance dispensing, drug stores

Hospitals

Hospital management & management support
Hospital outsourcing business(support for inventory management & procurement ofpharmaceuticals, medical equipment & materials, etc.)

HealthAgency handling of reservations for medical examinations& physical check-ups, and payments
PET (Positron Emission Tomography) business
Telephone health consultation
Pharmaceuticals information services
Medical treatment & healthcare publications
Welfare & health support services
Health care consultation services

Nursing care &care services
for seniors

Welfare product supplies
Home-based care services
Wholesaling and rental wholesaling of nursing care supplies

Source: Prepared by JFTC based on Brains magazine (January 27, 2016 edition; Brain Trust Co.); Shosha Report magazine (November 9, 2016 edition; Shosha Report Co.)

Beauty care products
Photo courtesy of NAGASE & CO.

Clinical analyzers
Photo courtesy of Hitachi High-Technologies Corporation

Shosha Handbook 2017 31

Column

Column4 The World's Shosha (Trading Companies) (Forbes Global 2000)
It would be easy to think that the Shosha exist in all countries,
but in reality, they are almost unique to Japan. In particular, thetype of major Shosha that falls into the ‘integrated trading
company’ category is currently very unusual outside Japan. Fromthe mid-1970s through the mid-1980s, countries like Korea, The
Philippines, Thailand, Malaysia, the United States, Mexico andBrazil attempted to foster Shosha of their own, but apparently
things did not go very well.
Today, how many companies that apparently belong to thesame category as Japan's Shosha exist around the world? Every
year, Forbes Magazine publishes its Forbes Global 2000 ranking of
the world's top 2000 public companies in terms of four indicators:

trading revenue, profits, assets, and market value. The Forbes
rankings classify Japan's Shosha as ‘trading companies,’ and thefollowing table extracts only this category from the 2016 edition of
the publication. It is clear from this edition of Forbes Global 2000
that seven of Japan's Shosha have an overwhelming presence
among the 15 companies belonging to the trading company
category. Of the remaining eight companies, three were from
Korea, two from China and one each from Hong Kong, the UnitedStates and India. None of these companies came anywhere near
the seven Japanese Shosha in terms of product items handled,multiple functionality, or global networks.

List of Trading Companies Extracted from the Forbes Global 2000
2016
RankingCompany nameCountry/ Trading revenue
region$bn

Proﬁts$bn

Assets$bn

Market value
$bn

1 136

Mitsubishi Corp

Japan

59.8

2.7

135.7

27.7

2 203

Itochu

Japan

43.2

2.9

76.8

22.0

3 229

Mitsui

Japan

40.6

1.5

97.6

22.5

4 365

Marubeni

Japan

61.7

1.2

64.3

9.5

5 645

Sumitomo Corp

Japan

31.1

0.0

71.0

13.7

6 711

Toyota Tsusho

Japan

68.9

0.3

35.8

8.6

7 897

Hanwha Corp

Korea

36.6

-0.3

124.2

2.6

8 919

Xiamen C&D

China

19.8

0.4

15.3

7.6

9 1236

Sojitz

Japan

14.1

0.3

18.1

2.6

10 1300

Li & Fung

Hong
Kong

18.8

0.4

4.9

5.4

Zhejiang Material Industrial
11 1664 Zhongda Yuantong Group China 11.5

0.1

12.1

4.3

12 1717

SK Networks

Korea

18.0

0.1

7.0

1.4

13 1915

LG International

Korea

11.7

-0.2

4.6

1.2

14 1970 Core-Mark Holding Company US

11.1

0.1

1.1

1.8

15 1993

10.6

0.3

6.8

1.4

Adani Enterprises

India

Source: Prepared by JFTC based on Forbes Global 2000 The World's Biggest Public Companies 201632 Shosha Handbook 2017

Chapter 3 The Shosha's CSR Activities

1

The Shosha's CSR Activities

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1 Social Welfare & Reconstruction Support
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"DREAM AS ONE." projectin support of parasports
Photo courtesy of
Mitsubishi Corporation

2 Global Environment
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3 Education and International Exchange

Sojitz Foundation
Photo courtesy of Sojitz Corporation

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Mobile Learning Center
Project

4 Culture & Arts

Photo courtesy of Itochu Corporation

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http://www.jftc.or.jp/environment/links.html© Save the Children

Cultural activities support
Photo courtesy of Hanwa Co.

Environmental education through Mitsui's Forests

Marubeni Educational Fund in Viet Nam

Photo courtesy of Mitsui & Co.

Photo courtesy of Marubeni Corporation

Shosha Handbook 2017 33

Chapter 3 The Shosha's CSR Activities

2

Action for a Better International
Community (ABIC)
1 What Is “Action for a Better International Community (ABIC)”?
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2 History (VWDEOLVKHGLQ$SULO
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4 Results of Activities
 )LVFDO2,392DFWLYLWLHV)LVFDO20,177DFWLYLWLHVCooperation withgovernment agencies

Cooperation withinternational events,
etc.
Support and exchanges
for international
students studying inJapan, etc.

Education forinternational understandingat elementary andsecondary schools;
Japanese language
education for nonJapanese children

34 Shosha Handbook 2017

Cooperation
with NGOs, NPOs andinternational
agencies, etc.

Principal areasof activities

Project
outsourcing,etc.

Business-type NPO activities using
international business experienceand knowledge

University,
graduate school andworking adult courses

Support forforeign companies
doing business withJapan; consultations with
employees of Japanesecompanies posted
overseas

Cooperation withlocal governments;
support for small andmedium enterprises

Column

Column5

designates industrial heritage sites that contributed to Japan's
Heritage of METI
industrial modernization from the closing days of the Tokugawa shogunate
and the Meiji Restoration through the prewar period as Industrial
Industrial Modernization Modernizationsites. Several of these sites are associated withand the Shosha the Shosha. TheHeritage
following section introduces some of the leading sites.

Miike Coal Mines-related Heritage Sites

The Sado Gold Mine

Transportation- and Trade-related Heritage Sites related to Coal from the Miike Coal MinesThe Sado Gold Mine opened

The Miike Coal Mines were

Takuma DAN

in 1601 and supported thetaken over by Mitsui in 1889. At

finances of the Edo shogunatethat time, Takuma DAN, transferred

for many years. It was

to Mitsui and later became the
Director-General of the Mitsui

nationalized in 1869, and sold off

zaibatsu. Prior to that, he had been

to Mitsubishi Goshi Kaisha in

Miike Coal Mines

1896.

an engineer at the Ministry of Works and after traveling with the Iwakura
Mission, graduated from the Massachusetts Institute of Technology.

In 1848, the first president
The Sado Gold Mineof the former Mitsui & Co.

Takashima Coal Mine-related Heritage Sites

Takashi MASUDA was born in(Hashima Island, or Gunkanjima (Battleship Island))Takashi MASUDA

the home of a local official

who had a multi-generation association with the Sado Gold Mine, and

The Takashima Coal Mine started operations towards the end of the

lived in Sado until his father was transferred to Hakodate as a retainer of

Tokugawa shogunate as a joint venture between the Saga-han (Saga Clanthe shogun in 1855.

or Saga Domain) and Glover & Co., founded by Scottish merchant Thomas
Glover. Mining operations got underway in earnest when Mitsubishi bought
it in 1881. The coal mining, mining division and mining research instituteSeto Inland Sea Copper

went independent in 1918 as Mitsubishi Mining (now Mitsubishi Materials),

The Besshi Copper Mine opened in 1691 and is believed to have laid theand in the same year, the coal sales division went independent as Mitsubishi

foundations for today's Sumitomo. Until it closed in 1973, it was the only copper

Shoji, which was dissolved in 1947*. Mining operations started at Hashimamine in the world to have been worked by the same company for approximately

Island in 1875 and came under

300 years. The statue of Masashige KUSUNOKI outside Tokyo's Imperial

Mitsubishi management in 1890.

Palace is the work of Koun TAKAMURA and others. It was planned by Sumitomo

Hashima is also known as Gunkanjima

to commemorate the bicentenary of the opening of the Besshi Copper Mine

(Battleship Island) and is located toand presented to thethe southwest of Takashima.

Imperial Household
Agency in 1900.
Masashige KUSUNOKI
outside Tokyo's
Imperial Palace* The current Mitsubishi Corporation wasestablished in 1954.

Battleship Island

Former Noritake Bone China Clay Factory
Seto Inland Sea Copper

Old Noritake products were marked with a backstamp known as the

The Port of Yokohama (Yokohama Customs House)
The building opened as

Maruki Mark. Ichizaemon MORIMURA VI, the founder of Morimura
Brothers Inc., is reputed to have said, “You are bound to confront withdifferent ideas and customs. However, you should overcome them to

Yokohama Customs House

Kanagawa Tax Office insucceed.” To ensure the words would not be

1859, but after going throughforgotten, Kanji “困” (“difficulty”) became theseveral name changes, including

company logo; “木” (“tree”) inside “困” is symbolized

Yokohama Government Office

as an arrowhead that breaks through “difficulty.” The

and Yokohama Tax Office,logo was also used in the back of potteries andporcelain wares until World War II. It was known as

became Yokohama Customs

Nobuyuki
NAKAJIMAHouse on November 28, 1872.

Maruki markthe “spider mark” in the United States.

The head of the office at the time was Nobuyuki NAKAJIMA, a memberof the Kaientai (maritime corps) created by Ryoma SAKAMOTO. He wasalso the father of the first chairman of JFTC, Kumakichi NAKAJIMA.
Various events are held annually on November 28 to celebrate Customs
Memorial Day.

Yahata Steel Works-related Heritage Sites
The government-managed Yahata Steel Works was established with aview to manufacturing various types of steel materials with a focus on
weapons at a time when demand for steel for military purposes was rising,and started operations in 1901. As production grew, sales to the private

Tomioka Silk Mill

sector also began. These were referred to as ‘disposals by the government,’
The Tomioka Silk Mill started
operations in 1872 and the raw silk
manufactured there was initially
exported to Lyon in France by the
French company Hecht Lilienthal & Co.
until 1877, when direct exports by theformer Mitsui & Co. commenced.
Tomioka Silk Milland Okura Gumi and Morioka Shoten of Tokyo, and Kishimoto Shoten andTsuda Katsugoro Shoten of Osaka were recognized as ‘disposal merchants.’
After World War I, the focus shiftedfrom disposals of physical items tofutures contracts, and Mitsui, Mitsubishi,
Iwai and Ataka. were active as
recognized merchants.
A night view of Yahata Steel Works today

Shosha Handbook 2017 35

Chapter 4 The Activities of Japan Foreign Trade Council, Inc. (JFTC)

The Activities of Japan Foreign Trade
Council, Inc.（JFTC）
1 About the JFTC
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2 Principal Business Activities(1) Submission of Policy Proposals and Requests to Government:RUNLQJWRLPSURYHDQGGHYHORSWKHLQWHUQDWLRQDOWUDGHHQYLURQPHQWE\VXEPLWWLQJVSHFL¿FSROLF\ SURSRVDOVDQGUHTXHVWVWRJRYHUQPHQWDXWKRULWLHVFRQFHUQLQJ SUREOHPVIDFLQJWKH
LQWHUQDWLRQDOWUDGHLQGXVWU\＜Principal Areas of Recommendations＞$FFRXQWLQJVWDQGDUGV WD[DWLRQSURPRWLQJHFRQRPLFWLHV FRRSHUDWLRQVHFXULW\H[SRUWFRQWUROVWUDGLQJV\VWHPUHIRUPVWUDGHLQVXUDQFHV\VWHPUHIRUPVSURPRWLQJLQYHVWPHQWDJUHHPHQWV WD[WUHDWLHVLPSURYLQJWKHLQZDUGLQYHVWPHQWHQYLURQPHQWSURPRWLQJVRFLDOVHFXULW\DJUHHPHQWV VHFXULW\ VDIHW\ PHDVXUHVRYHUVHDV FRRSHUDWLRQ ZLWKRYHUVHDVFRPPHUFH LQGXVWU\DVVRFLDWLRQV-(752HWFLQIRUPDWLRQVHFXULW\PHDVXUHVWKHZRUNLQJHQYLURQPHQWLPSURYHPHQWVHWF
(2) Initiatives to Expand Trade and Overseas Business① Initiatives to increase overseas expansion of infrastructure system exports② Support for exports of agricultural and marine products, and promotion of CoolJapan
③ Initiatives to promote free trade systems, including TPP, EPA/FTA and the WTO④ Initiatives to streamline trade-related procedures⑤ Improve logistics, including overseas logistics(3) Promote Domestic Globalization, Strengthen Human Resources① Special Research Projects

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UROHV6KRVKDVKRXOGIXO¿OO
② Initiatives to foster global human resources
6XSSRUWHGXFDWLRQIRUFKLOGUHQOLYLQJRYHUVHDVDQGUHWXUQHHVVXSSRUW-DSDQHVHVWXGHQWVVWXG\LQJDEURDGDQGVXSSRUWDQGZHOFRPHIRUHLJQVWXGHQWVVWXG\LQJLQ-DSDQ
③ Encourage exchanges of information and educational seminars on promoting
diversity, particularly the advancement of women in the workplace(4) Information Service Activities:RUNLQJWRHQKDQFHUHFRJQLWLRQRIWKHLQGXVWU\DQG-)7&LWVHOIWKURXJKFRPPXQLFDWLRQVWKDWSURYLGHHDVLO\XQGHUVWRRGH[SODQDWLRQVRIWKH6KRVKD VDFWLYLWLHV
① Regular Chairman's press conferences (five times a year) and announcements ofcomments from the Chairman② JFTC Essay Competition

36 Shosha Handbook 2017

③ Symposiums and other events④ Publication of the JFTC Monthly Report and the JFTC News; website⑤ Keizai Koho Center (KKC; Japan Institute for Social and Economic Affairs)(5) Training Programs① JFTC management seminars by former Shosha presidents (four times a year)② On-the-job training in trade, training for new Shosha recruits, pre-overseas
posting training (seven times a year)(6) Research & Analysis, Information Services① Regular lecture meetings (regular lecture luncheons, JFTC seminars, etc.; around24 times a year)②Publication of the Foreign Trade (annual) and the Shosha Handbook③ Preparation and publication of the Outlook for Japan's Trade Balance andCurrent Account (annual)(7) Corporate Social Responsibility (CSR) Initiatives① Initiatives to deal with global environmental problems (promoting a low-carbon
society, creating a recycling-based society, etc.)② Initiatives relating to corporate ethics and compliance, measures to deal with fraud
risk,etc.
③Exchanges of information on the social contribution activities of member
companies④ Other initiatives relating to CSR
3XEOLFL]HWKH6XSSO\&KDLQ&65$FWLRQ*XLGHOLQHV 5HYLVHG(GLWLRQ GLVSDWFKOHFWXUHUVWRXQLYHUVLW\FRXUVHVUHODWHGWRWKHHQYLURQPHQWHWF
(8) Other① Attend luncheons and dinners to welcome state guests② Exchanges with VIPs from overseas and Foreign Embassies in Japan③ Visit Japanese Chambers of Commerce and Industry overseas(9) Cooperation with Action for a Better International Community (ABIC)(see Chapter 3.2)

Location: World Trade Center Bldg.,
6th Floor (Hamamatsu-cho)

Shosha Handbook 2017 37

Attached Table■ The World Economy and Trade
The World

Japan

Business Cycle

JFTC
ChairmanWorld War II ends.

1945 The United Nations is established.
The GHQ orders Japan to dissolve the big fourfamily-run conglomerates.

1946
1947

Marshall Plan: European Recovery Program
The GATT is signed.

The GHQ allows Japan to resume private trading Post-war Inﬂation
but with constraints.
Japan Foreign Trade Council, Inc. (JFTC) isestablished on May 28.

1948
The Coordinating Committee for Multilateral

1949 Export Controls (CoCom) is established.
The People's Republic of China is established.

The exchange rate against US dollar is ﬁxed at¥360.

1950 The Korean War begins.

Japan resumes private trading.
The GHQ agrees in general for the Shoshas toestablish overseas branches.

1951

The JETRO is established.
San Francisco Peace Conference; The Treaty ofPeace with Japan is signed.
The Security Treaty between the US and Japanis signed.
Operation of civil aviation resumes.

1952

Japan joins the IMF and World Bank.

1953 The Korean War Armistice is signed.

Three Objectives and Four Principles for
Economic Independence: Austerity measures

1954

105 Shoshas specialized in textile go bankrupt(the post-war highest record).
The Bandung Conference: Asian-African

1955 Conference

Japan joins GATT.

1956

The systems that allow Shoshas to purchaseand hold foreign currencies and to settle netbalances between main and branch ofﬁces go
into effect.

1957

The Japanese Government establishes anexport council for trade business under the
Export Council.

1958 established.

The Ministry of International Trade and Industry(MITI) announces the outline for effective
placement of overseas locations for Shoshas.

1959 The GATT Conference is held in Tokyo.

Japan Trade Charter is adopted on November
19.

The European Economic Committee is

EFTA is established.

1960 The Dillon Round of the GATT is launched.
OPEC is formed.
The OECD is established.

The Basic Guidelines for the Liberalization ofTrade and Exchange is decided.
The Treaty of Mutual Cooperation and Security
between the US and Japan is signed.

Recession
Induced by the
Post-war Stability(1947.5-1953.4)

SpecialProcurement
Boom Brought by
the Korean War

Expansion
Period of the 3rd
Business Cycle

Contraction
Period of the 3rd
Business Cycle

HeitaroINAGAKI
Expansion
Period of the 4th
Business Cycle

1961 The Dillon Round of the GATT is concluded.

The Joint US–Japan Committee on Trade andEconomic Problems is created.

1962 The naval quarantine of Cuba

Japan-China Trade Memorandum

1963

Trade Day is designated on June 28th.

1964 The Kennedy Round of the GATT is launched.

Japan accepts the obligations of Article VIII of
the IMF Agreement.
Japan joins the OECD.
New tax breaks for export promotion comeinto effect; The export income credit system isabolished.
The Tokyo Olympics

Boom Broughtby the Tokyo
Olympics

1965 American bombing of North Viet Nam begins.

The Treaty on Basic Relations between Japanand the Republic of Korea is signed.

Post-olympics
Recession

38 Shosha Handbook 2017

Kumakichi
NAKAJIMA(1953.4-1972.10)

The World

1966 The Cultural Revolution begins in China.

Japan

Business Cycle

JFTC
Chairman

Deﬁcit-covering government bonds are issued
for the ﬁrst time.

The Six-Day War begins.

1967 The Kennedy Round of the GATT is concluded. The capital liberalization ofﬁcially begins.
The ASEAN is established.
The OAPEC is established.

1968 The Treaty on the Non-Proliferation of Nuclear
Weapons is signed.

Joint Japan-US Committee on Trade andEconomic Affaires meeting in Honolulu:
Cooperation to support the dollar

1969

The 2nd stage of capital liberalization

1970

JFTC relocates head ofﬁce from Bouekikaikan (Ginza) to World Trade Center Building(Hamamatsu-cho).
The Japan-US textile negotiations begin.
The 3rd stage of capital liberalization

1971

New economic policy is announced in the US;
The Nixon ShockChina joins the UN.
Multilateral currency adjustment: Smithsonian
Agreement

The yen is revalued upward against the US dollar
to ¥308 under the Smithsonian Agreement.
The 4th stage of capital liberalization (93%)
Japan agrees to a 3-year deal to limit textile
exports to the US.

1972

The US-Japan Textile Agreement
Okinawa is returned to Japan.
Sino-Japanese relations are normalized.

1973 The 4th Arab-Israeli War begins.

100% trade liberalization is decided.
JFTC draws up the "Shosha's Corporate Codeof Conduct" in May.
The ﬂoating exchange rate system essentiallycomes into effect: The end of Smithsonian
System.
Fact-ﬁnding survey on the largest 6 Shoshas(MITI)The Act on Emergency Measures against
Cornering and Speculative Stocking of Materials
and Products Related to Daily Life is ofﬁciallyannounced.

UK joins the EC.
The Tokyo Round of the GATT is launched.
The 1973 oil crisis

1974

Fact-ﬁnding survey on Sogo Shoshas (Japan
Fair Trade Commission)
JFTC establishes Committee on Japan-Korea
Trade Expansion and Balance.

1975 The 1st G6 Summit: Rambouillet Summit

The 2nd Fact-ﬁnding survey on Sogo Shoshas(Japan Fair Trade Commission): "Sogo Shoshas
in relation to Antitrust Policy"
JFTC sends 1st friendship delegation to People’s
Republic of China.

1976

The Lockheed bribery scandals

The Viet Nam War ends.

Expansion
Period of the 6th
Business Cycle

HeitaroINAGAKI(1953.4-1972.10)

Recession
Induced by the
Nixon Shock

Boom Induced by
the Reconstructing
the JapaneseArchipelago

TatsuzoMIZUKAMI(1972.10-1985.5)
Oil Crisis

1977
The Sino-Japanese Peace and Friendship Treaty
is signed.
The Narita International Airport begins its
operation.

1978
The 1979 energy crisis
The 5th G7 Summit in Tokyo

1979 The Tokyo Round of the GATT is concluded.

Douglas-Grumman scandal

The Soviet-Afghan War begins.

1980 The Iran–Iraq War
The Cancun Summit on International

1981 Development: The 1st North-South Summit

Japan-US Auto Trade Talks begin.
The Foreign Exchange and Foreign Trade Act isrevised.
Japan agrees to limit Auto Trade.
International Trade Institute (ITI) is organized.

1982 The invasion of the Falkland Islands

Shosha Handbook 2017 39

Attached Table

The World

Japan

Business Cycle

Korean Air Lines Flight 007 is shot down bySoviet interceptors.

1983
1984

Yen Expensive
Recession

The 1985 Mexico City earthquake

1985 The Plaza Accord

The Chernobyl disaster1986 The 12th G7 Summit in Tokyo
The Uruguay Round of the GATT is launched.

Perestroika begins in the Soviet Union.

1987 The Louvre Accord
Black Monday

1988 The Iran–Iraq War ends.
The Tiananmen Square Massacre

1989 The 1st APEC Economic Leaders' Meeting
The Berlin Wall is dismantled.

Iraq invades Kuwait.

1990 Germany reuniﬁes.

JFTC
Chairman

TatsuzoMIZUKAMI(1972.10-1985.5)

Privatization of Nippon Telegraph and Telephone,and Japan Tobacco
Sharp appreciation of the yen against US dollar
JFTC is reorganized from an economic
organization to industry organization in June.
The US announces to impose restrictions on
Japanese imports.
The Japan National Railways is privatized anddivided into companies collectively called JRgroup.
The Revised Trade and Investment Insurance
Act comes into force.
The US and Japan reach an agreement on theliberalization of beef and orange markets inJapan.

Bubble Economy

Yohei
MIMURA(1985.5-1992.5)

Sales tax is introduced.
The US-Japan working group on the Structural
Impediments Initiatives begin.
Stock market plunges showing signs ofcollapsing bubble in February.
The International Garden and Greenery
Exposition in Osaka
The ﬁnal report of the US-Japan working groupon the Structural Impediments Initiatives

Coalition forces attack Iraq.

1991 The Gulf War begins.
The Soviet Union collapses.
The International Peace Cooperation Law (PKO
Law) is enacted.
The Japan Self-Defense Forces (JSDF) are
deployed to Cambodia (PKO).

1992
The 19th G7 Summit in Tokyo

1993 The EU single market is created.
Maastricht Treaty enters into force.

The Japanese Government eases regulations on
94 items.

Koichiro
EJIRI

The CoCom is disbanded.

1994 The Uruguay Round of the GATT is concluded. The yen rises above 100 yen to US dollar.
1995 The WTO is established.

The Great Hanshin earthquake
US-Japan Automotive Agreement

1996

JSDF are deployed to the Golan Heights (PKO).
US-Japan Semiconductor Agreement
Japanese embassy hostage crisis in Peru

1997 the UK to the People's Republic of China

Sales tax is raised to 5%.
The 50th Anniversary of JFTC
The Bank of Japan Act and Act on Prohibition ofPrivate Monopolization and Maintenance of Fair
Trade are revised, eliminating a ban on holding
companies.
The Guidelines for Japan-US Defense
Cooperation are approved.
The Conference of Parties to the Framework
Convention on Climate Change in Kyoto

Transfer of sovereignty over Hong Kong fromThe Asian ﬁnancial crisis

1998

Underground tests of nuclear weapons by
India and Pakistan
The European Monetary Union begins.

1999 The NATO bombing of Yugoslavia in the
Kosovo War
The 26th G8 Summit in Okinawa and Kyushu

2000 The Inter-Korean Summit in Pyongyang

40 Shosha Handbook 2017

The Act on Emergency Measures for the
Revitalization of the Financial Functions isenacted.
The Nagano Winter Olympics
JFTC publishes the revised "Shosha's Corporate
Code of Conduct" in July.
JFTC sets up the Action for a Better
International Community (ABIC).

(1992.5-1996.5)

Post-bubble
Recession

MinoruMUROFUSHI(1996.5-2000.5)

2001

The World

Japan

Business Cycle

The September 11 Terrorist Attacks in the
US
The WTO Doha Development Round begins.
China joins the WTO.

ABIC is approved as NPO.
SFDF are deployed to Indian Ocean to support
the US.

Post-bubble
Recession

Euro banknotes and coins come into
circulation.

2002 North Korea declares its development of
nuclear weapons.
North Korea announces its withdrawal from2003 the NPT.
The Iraq War begins.
Repeated suicide bombing attacks in Iraq etc.

2004 EU expands to 25 countries including 10 new
countries from Eastern Europe.

The renminbi appreciates against USD by 2%.

2005 The 1st East Asia Summit (16 countries)

2006

Kenji
MIYAHARA(2000.5-2004.5)

The Act on Special Measures concerning
Humanitarian Relief and Reconstruction Workand Security Assistance in Iraq is enacted forenabling JSDF to be deployed.
JSDF are deployed to Samawah in Iraq.
JSDF's joining to the coalition forces is decided.
The Kyoto Protocol enters into force.
The 2005 World Exposition in Aichi: Love theEarth Expo
JFTC revises the "Shosha's Corporate Code of
Conduct" in June.

Expansion
Period in the 14th
Business Cycle

Mikio
SASAKI

China becomes the world's largest holder of
The end of the BOJ's zero-rate policy (0% toforeign exchange reserves.
0.25%)UN Security Council adopts sanction resolution The announcement is made that the pastagainst North Korea's underground nuclear
longest expansion period during the 6th
test.
business cycle is surpassed.

2007 The US subprime mortgage crisis in August
2008

JFTC draws up the "Shosha's Corporate
Environmental Code of Conduct" in February.
The 1st Japan-North Korea Summit meeting in
Pyongyang

2009

The three-party coalition government of
Democratic Party of Japan, Social Democratic
Party, and the People's New Party is set up.

2010 Financial crisis in Greece

The 10th Anniversary of ABIC

US completes withdrawal of American militaryforces from Iraq.
chairs of WTO Doha round.

(2004.5-2008.5)

The 60th Anniversary of JFTC
Postal privatization

The 34th G8 Summit at Toyako in Hokkaido
Lehman Shock in September
Japan Air Self-Defense Force withdraws fromThe crude oil price soars (above $100/barrel at Iraq after 5-year deployment.
one point).

2011 Documents released from the negotiating

JFTC
Chairman

The Great East Japan Earthquake on March 11
Japan completes analog switch off in terrestrial
television broadcasting.
Japan records ﬁrst trade deﬁcit in 31 years.

2012 Russia joins the WTO.

JFTC becomes general incorporated
association.
LDP & NKP form coalition government.

2013 EU enlargement (28 member states)

Japan formally declares to join TPP in March.
Diet passes the act on the Protection ofSpecially Designated Secrets (SDS).

2014

Japan raises sales tax from 5% to 8% in April.

Global Economic
Crisis

Nobuo
KATSUMATA(2008.5-2010.5)

Expansion
Period in the 15th
Business Cycle

Shoei
UTSUDA(2010.5-2014.5)

European crisis

US-Cuba restores diplomatic relations.

2015 The 70th Anniversary of WWII

The 42th G7 Summit: Ise-Shima Summit (May)2016 BREXIT referendum (UK, June)
Paris Agreement enters into force.
Donald Trump becomes the 45th President of2017 the US.

Japan signs TPP in February.
2016 Kumamoto Earthquake on April 14

Eizo
KOBAYASHI(2014.5-)

The 70th Anniversary of JFTC

Shosha Handbook 2017 41

Shosha’s Corporate
Code of Conduct
Foreword

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1st version established: May 10, 1973
2nd version revised: July 8, 1999
3rd version revised: June 16, 2005
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42 Shosha Handbook 2017

SHOSHA: Creating Value Globally Shosha Handbook 20172017年7月1日

第1刷発行

定

500円
（本体463円＋税）

発

価
行

所

一般社団法人 日本貿易会
Published by Japan Foreign Trade Council, Inc.
〒105-6106 東京都港区浜松町2-4-1 世界貿易センタービル6階
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Tokyo 105-6106, Japan
TEL
03-3435-5959
FAX 03-3435-5979
E-mail chosa@jftc.or.jp
URL http://www.jftc.or.jp/

編集・発行人
広報・調査グループ長
亀岬 睦也
Editor/Publisher Mutsuya KAMESAKIGroup Leader
Public Relations & Research Groupデ ザ イン
Designer

山口 勉 @primary-inc.jp
Tsutomu YAMAGUCHI印

光写真印刷株式会社

刷所© Japan Foreign Trade Council, Inc.
Printed in Japan●乱丁本・落丁本はお取り替え致します。
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