Latest news with #Mitsui&Co.
Business Insider
3 days ago
- Business
- Business Insider
Japan seeks to expand investment interests in Africa to wean off China
Japan is stepping up efforts to help its companies expand in Africa and strengthen trade ties across a continent where it has traditionally been viewed primarily as a donor. Japan is increasing efforts to expand its business presence in Africa, shifting from being viewed mainly as a donor. Renewed private sector interest in taking risks is driven by Japan's recovery from decades of deflation. Africa is seen as a key destination for expansion due to its growing population and abundance of natural resources. Takehiko Matsuo, vice-minister for International Affairs at Japan's Ministry of Economy, Trade and Industry, said the country's emergence from three decades of deflation has renewed the private sector's appetite for risk. Matsuo told Bloomberg that this shift is fueling growing interest in African markets. 'Now the mindset of Japanese business leaders has changed dramatically and they are now much more proactive about expanding their business globally,' Matsuo said. 'Africa is one of the destinations where we expect Japanese companies' to grow their presence. The United States and the United Kingdom are the main recipients of Japan's foreign direct investment. In contrast, Africa has attracted only a tiny share, receiving just 0.5% of Japan's total FDI to date. Growing interest in Africa Africa has caught Japan's attention for a few reasons. The continent of 54 countries has a rapidly expanding population, which presents a significant market opportunity, and vast deposits of natural resources. Major sectors of focus for Japan include critical minerals, base metals, and rare earths, as Tokyo seeks to lessen its reliance on China, which happens to be Africa's biggest trading partner. For example, Japanese trading house Mitsui & Co. emerged as the highest bidder for a stake in First Quantum Minerals Ltd.'s Zambian copper mines last year. Meanwhile, Hitachi Construction Machinery Co. Ltd. has been developing hybrid dump trucks to support greener mining operations. For Africa, Japan's renewed focus on trade and investment comes at a crucial moment. The urgency to attract private capital has intensified following the return of President Donald Trump to the White House and subsequent cuts to U.S. foreign aid.
14-05-2025
- Automotive
Mitsui Starts Mass Production of E-Methanol with Danish Firm
News from Japan Economy May 14, 2025 13:26 (JST) Aabenraa, Denmark, May 14 (Jiji Press)--Major Japanese trader Mitsui & Co. and Danish renewable energy company European Energy A/S have jointly launched the world's first mass production of environmentally friendly e-methanol. Their joint venture, Solar Park Kasso ApS, produces low-carbon e-methanol by fusing hydrogen made with the use of electricity generated at solar facilities in a suburb of Aabenraa, southern Denmark, with carbon dioxide captured from biomass sources, according to Mitsui's announcement Tuesday. The annual production amount will total up to 42,000 tons. Through e-methanol supply, Mitsui and European Energy aim to support decarbonization efforts at shipping and other companies heavily dependent on fossil fuels and help realize a sustainable society. The amount of CO2 emitted from e-methanol production is up to 97 pct less than that from methanol produced using fossil fuels. E-methanol can also be processed into sustainable aviation fuel. Solar Park Kasso will sell its e-methanol to major Danish shipping and logistics company AP Moller-Maersk A/S. Lego Group, a construction toy maker in Denmark, will use the e-methanol as a material for its plastic products. [Copyright The Jiji Press, Ltd.] Jiji Press
NHK
04-05-2025
- Business
- NHK
Japan's firms conservative on profit forecasts amid US tariff impact
Some major Japanese companies are expecting a fall in their net profits for fiscal 2025 amid uncertainties caused by US tariff policies under the Trump Administration. Mitsubishi Corporation says it projects a 26.4 percent decline in its net profit for the business year through March 2026, compared to the figure the previous year. Mitsui & Co. also says it expects a 14.5 percent drop in its net profit for the year. The two Japanese leading trading companies said one reason is a projected drop in profitability stemming from a fall in resource prices. Since the United States imposed additional tariffs in April, concern over a global economic slowdown has led to a slump in crude oil prices. There are views that an economic slowdown in China due to the country's trade conflicts with the US may drive down prices of natural resources, such as iron ore and coal. Mitsubishi Corporation President and CEO Nakanishi Katsuya said his company would keep on monitoring macroeconomic factors for effects caused by further intensification of trade friction between the US and China. Shipping company Mitsui O.S.K. Lines said it sees net profit plunging 60 percent in fiscal 2025, as the risk of slowdown of global flows of goods linked to the US tariff measures becomes more apparent. The company cited a decrease in container transport of goods from China to the US, and lower car carrier shipments. The Japanese marine shipping company plans to set up an office in Washington in June to gather information on the Trump administration's policies. The company also plans to revise vessel operation in accordance with changes in demand.
02-05-2025
- Business
3 Major Japanese Traders Expect Lower Profits
News from Japan Economy May 2, 2025 22:10 (JST) Tokyo, May 2 (Jiji Press)--Three of seven major Japanese trading companies expect to post lower consolidated profits for the year ending in March 2026, citing uncertainty surrounding U.S. President Donald Trump's trade policies. Mitsubishi Corp. expects its net profit to decrease 26.4 pct from the previous year to 700 billion. Mitsui & Co.'s net profit is projected to drop 14.5 pct to 770 billion yen. Toyota Tsusho Corp. forecasts a 6.2 pct decline in net profit to 340 billion yen. Itochu Corp., Sumitomo Corp., Marubeni Corp. and Sojitz Corp. anticipate higher profits. But they said their profits will be reduced by billions to tens of billions of yen by the possible economic impact of Trump's tariffs. CEOs expressed concerns about a possible tariff-induced global economic downturn. "I think there could be a global recession," said Shingo Ueno, president and CEO of Sumitomo. [Copyright The Jiji Press, Ltd.] Jiji Press
Bloomberg
02-05-2025
- Business
- Bloomberg
Japan's Buffett-Backed Trading Houses Brace for Tariff Impact
Major Japanese trading houses, backed by Warren Buffett, this week released cautious profit forecasts for the year, setting aside millions to hedge against persistent tariff uncertainty. Mitsubishi Corp. and Mitsui & Co. forecast this fiscal year's net income will fall 26% and 14%, respectively, from a year earlier, according to filings. Sumitomo Corp. and Marubeni Corp. expected theirs to rise 1.4% while Itochu Corp. saw a 2.2% climb. All five firms allocated funds as a buffer to hedge against tariff impacts, they said, with Sumitomo and Itochu setting aside 40 billion yen ($276 million).
