In the 25th installment of this series, we spoke with Toru Shida (55), president of Sojitz Brazil. Sojitz is planning to reduce its consolidated financial results (under International Financial Reporting Standards) for the fiscal year ending March 2023, as the pandemic begins to calm down. The company has set new records for net profits for two consecutive years, and since its establishment, Sojitz Brazil has played a key role in the global Sojitz Group. Under the new initiative, the company is now focusing on a project aimed at creating a decarbonized society originating in Brazil, which it is promoting with partner companies.
A bridge between Japan and Brazil’s key industries
The company was founded in 2004 as a successor to the former Nichimen and Nissho Iwai, which were once two of Japan's top 10 trading companies. The former was established in São Paulo in 1955, and the latter in São Paulo and Rio de Janeiro between 1957 and 1958. As a general trading company, they have been providing a wide range of necessary goods and services related to Brazil to those in need, with the majority of the business being in the metal resources and chemicals sectors.
In the 1950s, the company was the first to introduce Brazil's core industry, and its leading company, Rio Doce (now Vale), to Japanese steel companies. In 1955, the company imported the first Rio Doce iron ore to Japan. In the process of expanding Japan's imports of Brazilian iron ore, the company has been operating as an iron ore import agent and lead trading company connecting Japanese steel companies with Rio Doce for over half a century, and has played a key role in expanding iron ore trade and contributing to the expansion of the iron ore trade. It has also indirectly contributed to the expansion of infrastructure, including ports, which was needed in the region, by connecting Japanese steel companies with Rio Doce.
Nibrasco, a joint venture between Rio Doce, which started production in 1978 and is still in operation, and Nippon Steel Corporation and Nibrasco, a joint venture of the iron ore pellet company jointly invested in by Rio Doce and Petrobras, has also been involved in floating offshore oil projects since the 1990s. By always responding to the needs of the times, such as bareboat charter contracts for production facilities, the company has earned the respect of its Brazilian partner companies.
In recent years, the company has also expanded its business as an authorized dealer for premium brand vehicles in the states of Santa Catarina and Rio Grande do Sul.
A decarbonized society project from Brazil
The company is currently focusing on two businesses in Brazil as it moves towards a decarbonized society.
One of these projects is a green MEG production project using biomass-derived PET resin raw material (used to produce PET bottles, etc.), which is being promoted with Braskem, the largest South American chemical manufacturer in which the company has a large foreign shareholder. Unlike petroleum, this product is made from biomass, and is the second product after the green polyethylene that is currently on sale. Biomass is a renewable organic resource derived from living organisms, excluding fossil resources. Mainly wood, food waste, manure, etc.
Furthermore, green polyethylene is made from bioethanol derived from sugarcane, and because sugarcane absorbs CO2 through photosynthesis during its growth, it can offset the CO2 generated during the manufacturing process (compensating for CO2 emissions), making it environmentally friendly. Braskem is a global leader in biochemicals and is expected to continue to grow in the future.
The second is the commercialization of next-generation lithium-ion batteries using niobium titanium oxide, for which CBMM, Toshiba and the three companies have signed a joint development agreement. Niobium, a metallic element, is particularly important for automobiles. Niobium is considered essential for reducing the weight and strength of steel materials, and CBMM is the world's largest producer and seller of niobium (approximately 80%), with advanced technological capabilities and product development programs. Next-generation lithium-ion batteries, which have high energy density and can be charged quickly, are suitable for electric vehicles and other applications.
Attractive projects that outweigh the risks in Brazil
President Shida, who has been stationed in Brazil for a total of 10 years this year, has been involved in Brazilian iron ore business since before he was first posted there in 1996. He has experienced the unique Brazilian conditions of large fluctuations in exchange rates and interest rates, and things not always going according to plan. have also faced the risk of
However, Brazil is a country with a scale that is not found in Japan, and I believe that its potential can be brought out by "projects that are attractive enough to outweigh the negative aspects." In addition, hydroelectric power generation and bioethanol, which were commonplace due to Brazil's natural conditions, With the trend towards a decarbonized society, the field has suddenly come into the spotlight, and he feels that there is great potential in the "deep potential for business opportunities no matter what form the world takes."
Sojitz-related site near former immigrant detention center in Kobe
One of the origins of the former Nissho Iwai Corporation, one of the predecessors of Sojitz Corporation, was Suzuki Shoten, which was founded in Kobe in 1874. In 1917, the store recorded sales equivalent to 10% of the GNP at the time, becoming the largest general trading company in Japan. There are many places related to the store around the road connecting the Kobe Cultural Exchange Center and Kobe Port, and the Suzuki Shoten Memorial Hall on the company's website introduces nostalgic old and new scenery that immigrants would have seen, along with a tourist map. It has been done.
| Overview of Sojitz Brazil
Official name: SOJITZ DO BRASIL SA |
*This article is reprinted from the Brazil Nippo (March 29, 2024).
© 2024 Tomoko Oura
