shinco singapore
Transcription
shinco singapore
Ongoing globalization and diversifying customer needs are rapidly changing the business environment. How do we conduct our business so that products get to customers? How do we make connections between technology and society to create new value? We at Shinsho Corporation have a distinct advantage: as part of the Kobe Steel Group, we view the world from the perspective of a global manufacturer dedicated to high quality production. We create perfect designs that will add value to your business. Corporate Philosophy “ Integrity ” is Shinsho Corporation’s company motto. We are committed toward securing prosperity for our clients and shareholders through the creation of new values. Core Values 1. To build the world of tomorrow as the core trading company of the Kobe Steel Group both in name and reality. 2. To accept challenges of the future, and meet them with flexible solutions that help better society. 3. To obtain complete customer satisfaction by judging wisely and acting promptly. 4. To seek fair action and a reasonable profit, while strictly conducting ourselves in an ethical manner. 5. To utilize our full capabilities to maximize corporate growth and promote a harmonious environment for all individuals and their relations. CONTENTS 01 CORPORATE PHILOSOPHY AND ACTION GUIDELINES 03 PRESIDENT’S MESSAGE 07 CORPORATE PROFILE [ Organization and Divisional Consolidated Sales Results ] 08 GROUP SYNERGY 09 CORPORATE HISTORY 11 GLOBAL NETWORK 13 BUSINESS DIVISIONS [ Overview, Business Strategy, Topics, Global Operations, Products, Main Customers, Main Suppliers ] 13 IRON & STEEL 17 FERROUS RAW MATERIALS 21 NONFERROUS METALS 25 MACHINERY & ELECTRONICS 29 WELDING 33 GLOBAL STRATEGY 35 CHINA, TAIWAN AND KOREA 37 SOUTHEAST ASIA AND AUSTRALIA 39 NORTH AND CENTRAL AMERICA 41 INDIA, UNITED ARAB EMIRATES AND GERMANY 43 ESG REPORT [ Corporate Governance, Compliance, Environmental Policy, Security Trade Control System, Credit Control, Oversea Training Programs ] PRESIDENT’S MESSAGE Our Goals as the Kobe Steel Group’s Core Trading Company President and CEO Ikuhiro Yamaguchi 03 Three Strategies for Achieving Our Long-Term Management Vision The Ability to Advance Globally Is the Key Shinsho has adopted a long-term management vision The traditional functions that help a trading company targeting 2020, with three strategies aimed at making grow include the ability to provide information and us the core trading company of the Kobe Steel Group: credit. To this must now be added the ability to operate 1) Accelerate global business, 2) Stronger trading globally. Accordingly, Shinsho has placed particular company functions, and 3) Enhance business founda- emphasis on developing operations in four regions and tion. While implementing these strategies quickly to countries: China, North and Central America, India and achieve our vision, it is also important for us as a ASEAN countries. trading company to understand how we can help our client companies achieve their own business visions. In China, we’ve been developing the market primarily through our subsidiary Kobelco Trading (Shanghai) As globalization continues, more companies are pursuing operations abroad. Shinsho can act as an advance guard for their forays overseas, while also providing them with back-up support. This is precisely Long-Term Management Vision where Shinsho has a crucial role to play. All employees from top management to our newest recruits must work together and keep their eyes on the Vision goal if we are to fulfill our mission. To that end, we will make in-company information more open, promote frank discussion, make fair decisions, and promote speedy action to energize our organization. Aim to be a global trading company Our Strength Is in Responding Sensitively to Customer Needs from the Perspective of High-Quality Manufacturing As a trading company affiliated with a global manufacturer, Shinsho has the advantage of a business at the core of KOBELCO (Kobe Steel Group) Overall Strategy Accelerate global business ●Expand and enhance global locations ●Utilize global locations to expand supply of raw materials, materials and machinery, and combined product sales ●Overseas trading ratio: 50% Stronger trading company functions ●Expand business operations type business ●Stronger proposal type business ●Core trading company of Kobe Steel Group ●Initiatives in growth fields Enhance business foundation ●Obtain & develop human resources ●Stronger financial base ●Enhance management system perspective based on high-quality manufacturing, which makes it possible for us to respond sensitively to customer needs while providing services all over the world. This advantage is based on our close connection to the various companies that comprise the Kobe Steel Group. It’s important for us to accurately grasp the needs of our customers and provide tailored solutions that include aftercare service, while supporting their businesses with the wealth of specialized manufacturing expertise that is available to us. In this way we create an effective supply chain of services that supports every aspect of customer operations. Imagining where we want to be in 10 years, and formulating a long-term strategic vision that will get us there. 04 Goals for Fiscal 2020 by the Numbers Sales: ≥ ¥1,350 billion Ordinary income: Change in Sales /Ordinary Income Iron & Steel Ferrous Raw Materials Machinery & Electronics 840.9 870.4 Stockholders’ equit y 100 390.0 10.0 80 7.5 60 5.0 40 20.0% 15.2% 320.0 284.5 24.0% 20% 9.0 299.1 16.4% 5.3 16.0% 12.0% 40.0 8.0% 59.7 36.9 209.6 2.5 220.0 69.3 40.1 82.0 140.0 50.0 FY 2014 FY 2015 ( target ) FY 20 4.0% 85.0 0 2013 78.0 330.0 0 FY 42.5 35.4 370.0 306.0 328.5 178.1 16.3% 500.0 6.7 500 Equit y Ratio ( Unit : ¥ billion ) 15.0 13.0 1,000 1,000 ≥ 20 % Ordinary Income 1,350 1,500 Equity ratio: Change in Stockholders’ Equity/Equity Ratio Nonferrous Metals Welding ( Unit : ¥ billion ) ≥ ¥13 billion 2020 0 FY 2013 FY 2014 ( target ) FY 2015 ( target ) FY 2020 ( target ) ※Figures for all segments are non-consolidated. Co., Ltd., which functions as a trading company. We’ve of steel plate used in the manufacture of construction also undertaken joint ventures with customers in machinery. China, including a wire material processing plant. In the Singapore is fast becoming the base of operations future, we will place priority on pursuing more joint for management companies in both the ASEAN region ventures and expanding sales of products geared and India. Currently, it is home to eight of our subsidiar- toward Japanese automakers. ies engaged in management activities. To establish a In the region of North and Central America, our main stronger foundation for those activities, we are focus- focus is on Mexico. Auto production in North America ing on strengthening our management and sales continues to grow thanks to brisk car sales in the systems and cultivating global human resources. United States. In Mexico in particular, the production of Through the concentration of management functions, small vehicles aimed at the US market is expanding we can promote demand in the auto industry within the rapidly, and we expect that more automakers and auto region, improve our sales functions, and promote the parts manufacturers will establish themselves there. To iron scrap business, including trilateral trading, which ensure that Shinsho can supply materials locally in a promises future growth. timely fashion, we have founded Kobelco CH Wire Also, we can meet customer needs more quickly by Mexicana, S.A.de C.V., a factory that specializes in the using Singapore as a clearinghouse for information processing of cold heading wire material, which is concerning client companies who have multiple bases scheduled to begin operation at the end of 2015. of operation in ASEAN countries and India. Future Our trading activities in India are carried out by Kobelco Trading India Private Limited, and we also have a steel plate processing plant called Kobelco Plate Processing India Private Limited that recently began full-scale operation. We will continue to develop the Indian market, with an emphasis on expanding sales 05 plans call for the transfer of our financial functions to Singapore, as well. Pursuing Business Operations and Proposal Type Business In strengthening our functionality as a Nurturing Global Human Resources to Enhance Business Foundation trading T he nurturing of human resources is the most impor- company, we will be investing our capital and human tant element in our efforts to strengthen our managerial resources in ways that accord with the overseas base. To further accelerate our overseas business business development of our customers. In the past development, we are hurrying to cultivate global four or five years, Shinsho has rapidly increased its personnel. We’ve introduced a system that requires all overseas subsidiaries as well as distribution, process- new Japanese employees to have experience working ing and manufacturing bases. Focusing on the outside Japan and business training within 10 years of automotive and energy sectors, we currently are entering the company, and we are actively hiring invested in diversified overseas enterprises, including non-Japanese. For local personnel working in our partial investments in the overseas operations of client overseas subsidiaries and offices, we have programs companies. We will use these bases to collect localized that dispatch them to Japan for training so that they information. We maintain close ties with client corpora- have the same technical and specialized knowledge as tions and manufacturers, and have access to a wide their Japanese colleagues and can respond equally range of information as well as a physical presence well to market needs. throughout the world. Using these advantages, we will The most important elements in our business are a shift from our former intermediary, commission-based passion for work and a sense of responsibility. With business model to business operations and proposal persistence and a steadfast commitment to the future type business. and to the business development of our customers, we will forge ahead, enlarging our presence on the world stage. President and CEO Ikuhiro Yamaguchi Born in Nagasaki Prefecture, Mr. Yamaguchi entered Kobe Steel, Ltd. in 1975, after graduating from the Faculty of Economics at Kobe University. After occupying such positions as Head of the Iron & Steel Export Department and Head of the Steel Sheet Sales Department, he became an operating officer in 2004, an managing director in 2007, a senior managing director in 2009, and a vice president in 2010. He assumed his present position in June 2014. 06 CORPORATE PROFILE As the core trading company for the Kobe Steel Group, Shinsho Corporation operates five divisions: Iron & Steel, Ferrous Raw Materials, Nonferrous Metals,Machinery & Electronics, and Welding. We are dedicated to being a business partner that supports high-quality manufacturing. Company Information (as of March 31, 2015) Name Shinsho Corporation Established November 12, 1946 Paid-in Capital ¥5,650.28 million President and CEO Ikuhiro Yamaguchi Head Offices [Osaka] Yodoyabashi Square, 6-18, Kitahama 2-Chome, Chuo-ku, Osaka 541-8557, Japan [ Tokyo] Eitaro Bldg., 2-5, Nihonbashi 1-Chome, Chuo-ku, Tokyo 103-8261, Japan Employees [Consolidated] 1,309 [Non-Consolidated] 439 Average Age of Employees 39 years 2 months Offices Head Offices 2, Branch Offices 3, Branches 6, Offices 3, Overseas Representative Offices 2 Consolidated Subsidiaries 30 Equity Method Affiliated Companies 19 Net Sales 870,407 million Fiscal Year From April 1 to March 31 of the following year Main Business Lines Import/export and trading of products such as iron and steel, raw materials, nonferrous metals, machinery, information industry and welding Major Financial Institutions of the Borrowed Money Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mitsubishi UFJ Trust and Banking Corporation Certified Public Accountants KPMG AZSA LLC Listing of Shares Tokyo Stock Exchange (1st Section) Organization Segment Sales 4.3% Welding Board of Directors Audit & Supervisory Board 7.5% Machiner y & Electronics Audit & Supervisory Board Member President and CEO 22.7% Nonferrous metals Management Committee 32.4% Iron & Steel Segment Component Distribution (FY2014) ※The segment component distribution does not include Corporate Planning Iron & Steel 33.1% reports and other cancelledout sales and internal transac- Ferrous Raw Materials tions that do not belong to any one segment. Personnel Department Ferrous Raw Materials Sales Segment profit (unit: millions of yen) (unit: millions of yen) Iron & Steel 299,146 3,536 Ferrous Raw Materials 306,001 507 Nonferrous Metals 209,691 1,381 Machinery & Electronics 69,309 740 Welding 40,172 478 369 46 Segment Audit Department Nonferrous Metals General Affairs Department Machinery & Electronics Credit & Legal Department Other Adjusted amount Finance Department 07 Welding Total 54,283 21 870,407 6,575 GROUP SYNERGY Because of our close connection to manufacturing, Shinsho has the unique ability to offer manufacturing proposals to customers. Using our integrated strength as the core trading company of the Kobe Steel Group, we contribute to the business growth of our customers and to the creation of a prosperous society. Realizing an Effective Supply Chain Covering All Phases of Business Customer Fields ●Automobiles ●Ships ●Iron & steel ●Nonferrous metals ●Construction ●Machine tools ●Electronic components ●Semiconductors ●Home appliances ●Precision machinery ●Plant engineering ●Food ●Paper & pulp ●Electrical power ●Aeronautics and space ●Oil and chemicals Etc. We maintain close contact with our customers to get an accurate picture of their needs. Then, taking advantage of our strengths as a manufacturer-affiliated trading company, we provide tailored solutions that include after service. With expertise and an ability to make proposals based on a manufacturing perspective, we provide customers with guidance for business growth. MARKETING Sharing customer needs Taking advantage of our physical presence in operating centers around the world, we help customers discover latent needs and create new business opportunities. GLOBALIZATION Using our global network, we develop business projects that are tailored to specific countries and regions. MANAGEMENT The trading experience we have gained on a global scale enables us to conduct business smoothly. Iron & Steel Ferrous Raw Materials ・ Suppor ting customer busine sse s with a thorough, specialized knowledge of high-quality manufacturing ・ Establishing our own material processing centers as part of a comprehensive support system that includes manufacturing functions ・ Working jointly with manufacturing customers to develop products that meet emerging needs ・ Creating new business opportunities by taking advantage of our quick access to information about the latest developments within the Kobe Steel Group ・ Using high value-added products and cutting-edge technologies to make proposals for business ventures that result in market dominance ・ A global supply system that handles products of uniform high quality everywhere in the world ・ Discovering and attentively serving local needs by pursuing a business model oriented toward operations. ・ A th o ro u g h c o m m i tm e nt to r i s k m a n a g e m e nt th at provides customers with peace of mind ・Support for the acceleration of imports and exports ・ Enhancement of specialized knowledge through personal interaction with the Kobe Steel Group ・ Nurturing human resources who can effectively conduct global business Nonferrous Metals Machinery & Electronics Welding Using the collective strength of the Kobe Steel Group to meet diverse needs SPECIALTY “Only One” Products and Technologies Iron & Steel Business Aluminum & Copper Business Machinery Business Engineering Business Welding Business Kobelco Eco-Solutions Kobelco Construction Machinery Kobelco Cranes Kobelco Research Institute Other Businesses 08 CORPORATE HISTORY An Ambitious Spirit Founded on Long Experience as a Manufacturer-Affiliated Trading Company ’40 5V]LTILY ;HPOLP*VYWVYH[PVUMV\UKLKPU 2P[HOHTH6ZHRHJHWP[HSPaLKH[ TPSSPVU`LU;VR`V)YHUJO UV^;VR`V/LHK6MÄJLHSZV VWLULK ’50 March 1954 Toyama 6MÄJL (now Hokuriku )YHUJOVWLULK ’60 ’70 1\UL 4HYJO (JX\PYLKHZ[HRLPU(ZPH *OLTPJHS,UNPULLYPUN*V3[K *VTWHU`UHTLJOHUNLK[V :OPUZOV*VYWVYH[PVU May 1954 Fukuoka 6MÄJL (now Kyushu Branch VMÄJLVWLULK :LW[LTILY :OPUZOV*VYWVYH[PVUZOHYLZ ZLSLJ[LKHZHTHYNPU[YHKPUN PZZ\L March 1955 :LUKHP6MÄJL (now Tohoku BranchVWLULK May 1955 2\YL6MÄJL (now *O\NVR\ )YHUJOVWLULK “ T h e t im e i s c o m i n g w h e n t r a d i n g companies will lead manufacturers. Manufacturers will need direct connections with their own specialized trading companies if they want to follow their own course.” This idea, conceived by Chohei Asada, the sixth president of Kobe Steel, gave birth to Taihei Corporation (precursor to Shinsho Corporation), the first manufacturer-affiliated trading company in postwar Japan. 4H` 5HNV`H6MÄJL (now 5HNV`H)YHUJO6MÄJL VWLULK (WYPS 6WLYH[PVUHSYPNO[Z[V:LU^H :HUN`V*V3[KHJX\PYLK 1\S` Sapporo 6MÄJL (now Sapporo )YHUJOVWLULK 6J[VILY @\HZH*VYWVYH[PVUHJX\PYLK (WYPS 2HRVNH^H6MÄJL (now 2HRVNH^H )YHUJOVWLULK I n 19 6 0 , t h e 14 t h y e a r a f t e r t h e company was founded, its name was changed from Taihei C orporation to S hinsh o C o r p o r at io n. T h e C hine s e character “shin” is the first character for the name of Kobe, and thus symbolizes Kobe Steel. The character “sho” means “trade.” The new name reflected the company’s ambition to become the core trading company of the Kobe S teel Group. (\N\Z[ :OPUZOV*VYWVYH[PVUSPZ[LKPU [OL:LJVUK:LJ[PVUVM[OL ;VR`V:[VJR,_JOHUNL (WYPS :OPa\VRH6MÄJLUV^:OPa\VRH )YHUJOVWLULK (\N\Z[ ;OL:OPUZOV(TLYPJHU*VY WVYH[PVUUV^:OPUZOV(TLYP JHU*VYWVYH[PVULZ[HISPZOLK S hinsho began f ull-s c ale over sea s expansion in the late sixties and established The Shinsho American Corporation in 1966. Sales for the first fiscal year of operation reached $1.19 million. (\N\Z[ :OPUZOV*VYWVYH[PVUPZSPZ[LKPU [OL-PYZ[:LJ[PVUVM[OL;VR`V :[VJR,_JOHUNL 09 6J[VILY Gunma 6MÄJLVWLULK (WYPS 2\THTV[V6MÄJLVWLULK 6J[VILY *HWP[HSPaH[PVUPUJYLHZLK[V TPSSPVU`LU 1\UL :`Z[LTVM[^VOLHKVMÄJLZ HKVW[LKVULPU6ZHRHHUK VULPU;VR`V (WYPS Gifu 6MÄJLVWLULK Shinsho Corporation’s history goes back to November 1946 with the founding of its precursor company Taihei Corporation. Established to handle Kobe Steel products, Taihei was Japan’s first postwar trading company exclusively affiliated with a manufacturer. At the time, many Japanese manufacturers had lost their production facilities in World War II, and distribution functions were paralyzed. Company founders passionately believed that trading companies exclusively affiliated with manufacturers would provide crucial support to the manufacturing sector, and strove to supply the market with high-quality products. This spirit of high-quality manufacturing has been transmitted for more than 60 years. Today, Shinsho Corporation remains committed to the cause of high-quality manufacturing and, in partnership with Kobe Steel and the Kobe Steel Group, pursues business opportunities by proposing projects to client companies. In today’s quickly changing world, new demand must be discovered and developed. Never forgetting the aspirations of our founders, Shinsho will continue to develop as a trusted corporation that contributes to the wellbeing of society. ’80 4HYJO )LPQPUN9LWYLZLU[H[P]L6MÄJL VWLULK I n the 19 6 0 s and 70 s, as J apan’ s e c o n o m y g r e w, S h i n s h o ex p a n d e d operations in China, the world’s most populous nation. In 1972, we created a n e w C h i n a Tr a d e D e p a r t m e n t t h a t gathered information and conducted surveys. ’90 -LIY\HY` :OPURV:OVQP:PUNHWVYL7[L 3[KLZ[HISPZOLK 5V]LTILY ;HP^HU:OPUZOV*VYWVYH[PVU LZ[HISPZOLK 5V]LTILY :OPUZOV(\Z[YHSPH7[`3[K UV^2VILSJV;YHKPUN(\Z[YHSPH 7[`3[K)LZ[HISPZOLK (WYPS Tokuyama 6MÄJLVWLULK (WYPS :OHUNOHP:OPUZOV;YHKPUN *V3[KLZ[HISPZOLK 1\S` :OPUZOV4L[HS7YVJLZZPUN*VYW UV^:OPUZOV5VU-LYYV\Z 4L[HSZ*VYWLZ[HISPZOLK :LW[LTILY :OPUZOV)\ZPULZZ:\WWVY[ *V3[KLZ[HISPZOLK 1HU\HY` :OPUZOV4L[HS7YVK\J[Z *VYWVYH[PVUUV^:OPUZOV :[LLS7YVK\J[Z*VYWVYH[PVU LZ[HISPZOLK -LIY\HY` 2VIL)YHUJO6MÄJLVWLULK :LW[LTILY :OPUZOV4HSH`ZPH:KU)OK LZ[HISPZOLK ’00 6J[VILY *LY[PÄLKHZJVTWSPHU[^P[O 0:6LU]PYVUTLU[HS THUHNLTLU[JYP[LYPH 5V]LTILY :OPUZOV4LPOVR\>PYL0UJ LZ[HISPZOLK 1HU\HY` .YHUK)SHUJ7YVJLZZPUN33* HJX\PYLK 1HU\HY` :OPUZOV2VYLH*V3[K LZ[HISPZOLK (\N\Z[ :OPUZOV7OPSPWWPULZ *VYWVYH[PVULZ[HISPZOLK 1HU\HY` *HWP[HSPaH[PVUPUJYLHZLK[V TPSSPVU`LU 1\UL :\aOV\:OPURV:OVQP4H[LYPHS *V3[KLZ[HISPZOLK :LW[LTILY 2VILSJV;YHKPUN:OHUNOHP *V3[KLZ[HISPZOLK ’10 1\S` 4PKKSL,HZ[9LWYLZLU[H[P]L 6MÄJLVWLULK 6J[VILY 2VILSJV7YLJPZPVU7HY[Z :\aOV\*V3[KLZ[HISPZOLK 4HYJO 2VILSJV;YHKPUN0UKPH7YP]H[L 3PTP[LKLZ[HISPZOLK 4H` 7;2VILSJV;YHKPUN0UKVULZPH LZ[HISPZOLK 1\UL 2VILSJV;YHKPUN=PL[UHT *V3[KLZ[HISPZOLK +LJLTILY 4H[Z\IV*VYWVYH[PVUHJX\PYLK 1HU\HY` 2VILSJV7SH[L7YVJLZZPUN0UKPH 7YP]H[L3PTP[LKLZ[HISPZOLK 1HU\HY` :OPUZOV6ZHRH:LPRV5HU[VUN *VYWVYH[PVULZ[HISPZOLK (WYPS :OPUZOV4L_PJV:(KL*= LZ[HISPZOLK 1\S` 2VILSJV;Z\[Z\UHRH;YHKPUN *V3[KLZ[HISPZOLK 4H` ;OHP,ZJVYW3[KLZ[HISPZOLK :LW[LTILY 2VILSJV*/>PYL4L_PJHUH :(KL*=LZ[HISPZOLK Kobelco Trading (Shanghai) Co., Ltd. is a wholly owned subsidiar y of Shinsho Corporation that has trading, exporting, Thai Escorp Ltd. was established in 19 8 8, at a time when T hailand was experiencing rapid development. The company has achieved notable results in such fields as welding material supply, as well as copper tube and aluminum material supply to Japanese-owned air conditioner manufacturers. and importing rights in Shanghai. It was established to accommodate the market expansion that has accompanied China’s rapid economic growth. 4HYJO :*;LJOKL4L_PJV:(KL*= LZ[HISPZOLK 4H` 2;5*V3[KLZ[HISPZOLK 1\S` (PRLU>PYL7YVJLZZPUN33* LZ[HISPZOLK 4HYJO ;,:,4:LY]PJL*V3[K LZ[HISPZOLK 1HU\HY` :OPUZOV,\YVWL.TI/ LZ[HISPZOLK 10 GLOBAL NETWORK The world market continues to change from day to day, with diversifying needs. We at Shinsho Corporation conduct global business operations that are tailored to local customer needs throughout the world. GERMANY JAPAN CHINA / KOREA / TAIWAN UAE UNITED STATES OF AMERICA INDIA SOUTHEAST ASIA AUSTRALIA 1 Tokyo Head Office 4 Asia Chemical Engineering Co., Ltd. 2 Matsubo Corporation 4 Shinsho Business Support Co., Ltd. Osaka Tokyo 2 JAPAN Osaka Kobelco Tsutsunaka Trading Co., Ltd. 5 Nagoya Branch Office Tokyo 4 3 7 1 2 5 3 Osaka Head Office 6 Kobe Branch Office 4 Shinsho Steel Products Corporation 7 Kyushu Branch Office Fukuoka Osaka 6 4 Shinsho Non-Ferrous Metals Corp. Osaka 2 CHINA, TAIWAN AND KOREA 1 1 Kobelco Trading (Shanghai) Co., Ltd.[Dalian Office] 6 Ondo Shinsho Precision Technology Corporation 11 2 Kobelco Trading (Shanghai) Co., Ltd.[Beijing Branch] 7 Kobe Special Steel Wire Products (Pinghu) Co. Ltd. 12 Beijing Representative Office 8 Shanghai Shinsho Trading Co., Ltd. 12 4 Kobelco Precision Parts (Suzhou) Co., Ltd. 8 Kobelco Trading (Shanghai) 13 Allmet Co., Ltd. Co., Ltd.[Shanghai Head Office] [Seoul suburbs] 4 Suzhou Shinko-Shoji Material Co., Ltd. 9 Kobelco Trading (Shanghai) Co., Ltd.[Chengdu Branch] 14 Shinsho Osaka Seiko (Nantong) Corporation 10 Kobelco Trading (Shanghai) Co., Ltd.[Guangzhou Branch] 15 3 4 3 13 5 7 8 15 10 11 14 5 11 Shinsho Korea Co., Ltd. [Seoul suburbs] 12 6 9 VSC Shinsho Company Limited KTN Co., Ltd. [Seoul suburbs] Taiwan Shinsho Corporation Taipei Office, Hsinchu Office, Taoyuan Office Kobelco Trading (Shanghai) Co., Ltd.[Wuhan Office] ● Domestic operating location ● Domestic subsidiary ● Overseas representative office ● Overseas subsidiary ● Overseas affiliate ※As of July, 2015 1 Shinsho (Philippines) Corporation 8 2 2 6 5 SOUTHEAST ASIA AND AUSTRALIA 7 8 3 4 9 Shinko Shoji Singapore Pte. Ltd. Kobelco Trading Vietnam Co., Ltd. 10 PT. Futabadenshi Indonesia 11 PT. Shinsho K’mac Precision Parts Indonesia [Ho Chi Minh City Head Office] 4 Vina Washin Aluminum Co., Ltd [Ho Chi Minh City] 9 12 Kobelco Trading Vietnam Co., Ltd. [Hanoi Office] 1 3 Naito Asia Sdn. Bhd. [Kuala Lumpur] [Manila] 5 10 11 Bangkok Head Office, Bo Win Branch, Ayutthaya Branch, Anatanakorn Branch 5 [Jakarta] Thai Escorp Ltd. TES E&M Service Co., Ltd. 12 13 [Bangkok] 6 Ondo Shinsho (Thailand) Co., Ltd. Kobelco Trading Australia Pty Ltd [Brisbane Office] 14 Kobelco Trading Australia Pty Ltd [Sydney Head Office] 13 7 14 PT. Kobelco Trading Indonesia [Jakarta] Shinsho (Malaysia) Sdn. Bhd. [Kuala Lumpur Head Office, Penang Office] 1 Shinsho American Corporation 6 Aiken Wire Processing, L.L.C. [Detroit Head Office] 1 NORTH AND CENTRAL AMERICA 1 Grand Blanc Processing, L.L.C. 7 Aiken Precision Technologies, L.L.C. 2 Shinsho K’mac Precision Parts, L.L.C. 8 Shinsho Mexico S.A. de C.V. 3 Dexter Fastener Technologies, Inc. 8 Kobelco CH Wire Mexicana, S.A. de C.V. 4 SST Forming Roll, Inc. 8 SC Tech de Mexico, S.A. de C.V. 2 3 5 4 6 7 8 5 9 Shinsho-Meihoku Wire, Inc. 9 Shinsho American Corporation [Los Angeles Branch] 6 Shinsho American Corporation [South Carolina Branch] 1 5 Kobelco Trading India Private Limited [New Delhi Head Office] 2 Kobelco Trading India Private Limited [Chennai Office] INDIA, UNITED ARAB EMIRATES AND GERMANY 2 Kobelco Plate Processing India Private Limited [Chennai] 3 Shinsho K’mac Precision Parts (India) Private Limited 1 4 4 3 Middle East Representative Office [Dubai] 2 5 Shinsho Europe GmbH [Dusseldorf] 12 IRON & STEEL Our Global Network Enables Us to Lead the Way Shinsho’s Iron & Steel Division utilizes the Kobe Steel Group’s global network to satisfy customer requirements in all phases of their business, from overseas start-ups to stable product supply. We offer not only localized market information but also the kind of technical and production expertise that only a trading company affiliated with a manufacturer can provide. By tapping into the vast and varied sources of the Kobe Steel Group, we can supply the ideal products to meet diverse customer needs. 13 OUR STRATEGY Providing Support for Overseas Business Development Right from the Start One of Shinsho’s greatest strengths is the high value-added “Only One” products manufactured by Kobe Steel, which are backed by a wide array of purchasing sources through which we can reliably supply the steel products our customers need anywhere in the world. We are currently establishing joint ventures in North and Central America, China and Southeast Asia so that we can supply Japanese-owned automakers and Accelerating Overseas Business auto parts manufacturers operating abroad with products of the same high quality as those bought in Japan. One of our most important missions is to support client companies as they set up their own business operations abroad. We provide parts makers and other companies who Growth While Satisfying Japanese Domestic Demand are looking to expand abroad with information we’ve gathered from our own overseas operating bases as well as from other members of the Kobe Steel Group, with whom we maintain close ties. In this way we become a true partner in our customers’ enterprises by advising them about siting and plant construction and providing them with information about the purchase of equipment and furnishings. Active Expansion into Fields and Regions of Growth Mexico has become a major focal point as a base for manufacturing and exporting products to North and South America. Auto part manufacturers in particular are expected to continue setting up Mexican operations in large numbers, and Shinsho is ready to support them with local subsidiaries that import and export steel products and gather information on new developments as they happen. We have also established a secondary wire processing facility that will further expand business opportunities. Similarly, we have opened a new factory in the suburbs of Chennai, India that processes steel plate used to manufacture construction machinery. Infrastructure is being built at a rapid pace in India, and this has increased demand for construction machinery. Our new plant will enable use to reliably supply construction machinery manufacturers with high-quality steel plate at a reasonable cost. Taking advantage of technical expertise and information that only a trading company closely affiliated with a manufacturer can provide, we help our client companies pursue their businesses in fields and regions that promise future growth. Kobelco Plate Processing India Private Limited 14 A New Secondary Wire Processing Plant Anticipates Increased Car Production in Mexico TOPICS 1 In September 2014, Shinsho and several other investors established a MEXICO joint venture in Santa Fe Industrial Park in Mexico called Kobelco CH Wire Nissan Guanajuato Aguascalientes San Luis Potosi Guanajuato Santa Fe Industrial Park Silao Santiago de Querétaro Honda Mazda Nissan Manzanillo heading (CH) steel wire. Automotive production in Mexico is expected to grow steadily, creating an anticipated need for a local supply of CH wire as Japanese automakers continue to expand their Mexican operations. KCHM will manufacture CH Honda Mexico City Port Mexicana, S.A. de C.V. (KCHM), which will manufacture and sell cold wire used to make automotive fasteners and cold-forged parts, which it will supply primarily to Japanese-owned automotive parts manufacturers operating in the area. Location of Kobelco CH Wire Mexicana S.A. de C.V. TOPICS 2 Satisfying Growing Demand Through A Joint Venture That Manufactures Automotive Parts More than 20 million vehicles are now sold in China annually, making it the largest automotive market in the world. Against this background, Shinsho has established two joint ventures in Nantong, China that manufacture automotive parts. Ondo Shinsho Precision Technology Corporation primarily manufactures and sells parts used in automotive differential gear Ondo Shinsho Precision Technology Corporation units. The forgings, special steel round bar, and cut-processed materials Nantong used to make those parts are supplied by Shinsho Osaka Seiko (Nantong) Corporation. Because automotive demand is also expected rise in Thailand and Shinsho Osaka Seiko (Nantong) Corporation Indonesia, Shinsho is establishing other joint ventures in those countries that will quickly serve the needs of Japanese automakers and related companies who are expanding operations there. Global Operating Locations ● Domestic subsidiary ● Overseas representative office ● Overseas subsidiary ● Overseas affiliate ※ As of July, 2015 Ondo Shinsho Precision Technology Corporation Shinsho Osaka Seiko (Nantong) Corporation Shanghai Shinsho Trading Co., Ltd. Kobelco Trading (Shanghai) Co., Ltd. [Shanghai Head Office] Kobe Special Steel Wire Products (Pinghu) Co. Ltd. VSC Shinsho Company Limited Shinsho Europe GmbH [Dusseldorf] Kobelco Plate Processing India Private Limited [Chennai] Shinsho Korea Co., Ltd. [Seoul suburbs] Allmet Co., Ltd. [Seoul suburbs] Shinsho Steel Products Corporation [Osaka] Kobelco Trading India Private Limited [New Delhi Head Office] Thai Escorp Ltd. Bangkok Head Office, Bo Win Branch, Ayutthaya Branch, Anatanakorn Branch TES E&M Service Co., Ltd. [Bangkok] Ondo Shinsho (Thailand) Co., Ltd. Shinsho (Malaysia) Sdn. Bhd. [Kuala Lumpur Head Office, Penang Office] 15 Shinsho K’mac Precision Parts, L.L.C. Shinsho American Corporation [Detroit Head Office] Grand Blanc Processing, L.L.C. Shinsho-Meihoku Wire, Inc. Shinsho K'mac Precision Parts(India) Private Limited Middle East Representative Office [Dubai] Dexter Fastener Technologies, Inc. SST Forming Roll, Inc. Taiwan Shinsho Corporation [Taipei Office, Hsinchu Office, Taoyuan Office] Kobelco Trading (Shanghai) Co., Ltd. [Guangzhou Branch] Kobelco Trading Vietnam Co., Ltd. [Ho Chi Minh City Head Office, Hanoi Office] PT. Futabadenshi Indonesia PT. Shinsho K’mac Precision Parts Indonesia [Jakarta] PT. Kobelco Trading Indonesia [Jakarta] Shinsho American Corporation [South Carolina Branch] Aiken Wire Processing, L.L.C. Aiken Precision Technologies, L.L.C. Shinsho American Corporation [Los Angeles Branch] Shinsho Mexico S.A. de C.V. Kobelco CH Wire Mexicana, S.A. de C.V. Shinko Shoji Singapore Pte. Ltd. (Plus 22 joint ventures not listed) Main Products Handled by the Iron & Steel Division Wire Rods and Bars Steel Plates Steel Sheets KOBELCO wire rods and bars are used in the automotive industry and other fields. Working with secondary processors, Shinsho provides customers with a reliable supply of high value-added wire rod and bar products. K n ow n fo r i t s u p e r b p ro c e s s a b i l i t y a n d we l d a b i l i t y, KOBELCO steel plates provide the foundation for a wide range of industries. Kobe Steel was a pioneer in the production of high-strength steel sheet, another product that Shinsho supplies. Half-finished Steel Products Special Steel Products Construction Materials Castings and Forgings Titanium Steel Powders Applications for titanium are expanding in many fields. Kobe Steel was the first in Japan to develop titanium for commercial use. Shinsho supplies KOBELCO titanium products to meet diverse customer needs. We provide a steady supply of various KOBELCO steel alloy powders, which are highly regarded overseas as material for making automotive and other sintered parts. Ingots, blooms, billets, slabs Carbon Steel Products Carbon and alloyed steel for structural use in machiner y, stainless steel, heat-resistant steel, tool steel, spring steel, bearing steel, free-cutting steel, high tensile-strength steel, high manganese steel, special alloys Wire Rod Products Columns, tie rods, steel pipe piles, guard cables, guard rails, gratings, anti-sway bars, high-tension bolts, stud dowels, steel fibers, high-strength shear reinforcement, geogrids, other general construction and civil engineering materials, safety fences for walkways, mesh to prevent falling rocks Engine crankshafts, stern frames, propellers, turbine shafts and blades, various rolls, die steel Main Customers O&K Company Limited Casting Materials and Cast Products Steel wires for cold forging, hard steel wires, PC steel wires, wire ropes, spring wires, stainless steel wires, annealed steel wires, nails, thin wires, wire mesh, barbed wires, polished steel bars, screws, bolts, nuts, binding wire, cold-forged products Titanium material (powder), pure titanium, titanium alloys, secondary titanium products, titanium building materials and seamless pipes, welded pipes, sheets, bars Pig irons for casting, auxiliary materials for casting, iron scrap, cast and forged products, steel powders Main Suppliers KS Summit Steel Co., Ltd. Osaka Seiko, Ltd. Shimabun Corporation Meihoku Kogyo Co., Ltd. Nakajima Sangyo Co., Ltd. Mitsui Engineering and Shipbuilding Co., Ltd. Titanium and Nickel Alloys Wire rods, hard steel wire rods, bars in coil, steel plates, hot-rolled steel strip, cold-rolled steel strip, surface treated steel sheets, colored steel sheets, steel pipes, round reinforcement bars, deformed bars, section steel Maruichi Steel Tube Ltd. Yodogawa Steel Works, Ltd.※ Sanwa Tekko Co., Ltd. Tsuneishi Shipbuilding Co., Ltd.※ Futaba Corporation※ Shinko Wire Company, Ltd. Fukuda Saga Tekkohsho Co., Ltd.※ Futaba Industrial Co., Ltd. Sakai Steel Sheets Works, Ltd Ondo Corporation※ Name Main Products Supplied Kobe Steel, Ltd. Wire rods, steel plates and sheets, steel castings and forgings, titanium, steel powders, etc. Kobe Special Tube Co., Ltd. Seamless stainless steel tubes, precision pipettes, special tubes Shinko Kenzai Ltd. Guard fences, steel gratings, soundproof wall products, disaster prevention products, landscape products, marine and structural materials Shinko Wire Company, Ltd. Special steel wire products, wire rope products, engineering-related products Tesac Shinko Wirerope Co., Ltd. Wire rope and related products, secondary wire material products Shinko Bolt, Ltd. Various types of bolts for use in construction and civil engineering Nippon Koshuha Steel Co., Ltd. High-grade special steels and special alloys Shinko Kohan Kako, Ltd. Fused steel plates Osaka Steel Co., Ltd. Billets, steel materials, and processed steel products Kanto Steel Ltd. Billets, steel materials, and processed steel products Kyoei Steel Ltd. Billets, steel materials, and processed steel products Maruichi Steel Tube Ltd. Steel tubes and processes products Nisshin Steel Co., Ltd. Steel sheets and plates, stainless steel sheets and plates Nippon Yakin Kogyo Co., Ltd. Stainless steel, nickel and nickel alloy sheets and plates ※ Includes overseas group companies. 16 FERROUS RAW MATERIALS We Supply the Energy That Moves Society The Ferrous Raw Materials Division handles a wide range of resources needed by society and provides our customers with business support. We supply the coal and iron ore that go into blast furnaces and iron slag that is melted in electric furnaces. Keeping the environment in mind, we also focus on recycling slag, waste plastic, and other materials to make RPF (Refuse Paper and Plastic Fuel) that can be burned instead of coal. 17 OUR STRATEGY Earning Customer Trust Through Reliable Product Supply The Ferrous Raw Materials Division indirectly supports economic growth in Japan and throughout the world by supplying the iron ore and coal needed to operate blast furnaces, and the iron scrap needed for electric furnaces. Slag is one of the byproducts of the steelmaking process. It can be combined with recycled waste plastic and other materials to make RPF (Refuse Paper and Plastic Fuel) that can be Using Our Physical Presence in used as a coal replacement. We expect the market for RPF to grow as the world tries to conserve limited fossil fuels and reduce CO ² emissions. The strength of the Ferrous Raw Materials Division lies in its physical presence in many locations around the world. While Locations Throughout the World to Help Guide Client Businesses maintaining close ties with purchasing departments within Kobe Steel’s Iron & Steel Business as well as iron and steel manufacturing departments, we often visit production sites to get a first-hand view of what is needed. Seeking out materials that are ideally suited to our clients, we ensure them a stable supply through appropriate, fine-tuned service that earns their trust. Meeting Customer Needs While Expanding Markets and Operations Although the Ferrous Raw Materials Division has grown alongside Japanese steelmakers, the market has changed dramatically in recent years. Japanese manufacturers are increasingly shifting their production facilities abroad, and new steelmakers are starting up overseas, further increasing the scale of the industry. To meet customer needs, Shinsho must serve the international market. Therefore, the Ferrous Raw Materials Division is expanding its bases of operation in such locations as Australia, the U.S., China and Singapore to accommodate localized demand, while building systems to ensure our customers have a stable supply. As part of that effort, we work closely with our clients and are building our own raw material processing facilities. By expanding our own operations, we create demand and provide a reliable supply of materials. Adopting a long-term perspective that looks five to ten years ahead, we provide the support our customers need to expand their business by analyzing market trends using massive amounts of high-quality information. Ore vessel 18 TOPICS 1 Investment in the Moranbah North Coal Mine in Australia Coal is an indispensable material for the production of iron and steel, which is a mainstay of Japan. In 1996, the Ferrous Raw Materials Division became a joint venture partner in the Moranbah North Coal Mine Project in Australia, from which it provides a steady supply of coking coal to Japan and other major steel producing countries throughout the world. While accurately grasping the raw material needs of Kobe Steel and working in partnership with that company, the Division will continue to seek out other investment opportunities in the field of ferrous raw materials. Moranbah North Coal Mine Project TOPICS 2 Further Expansion of Environmental Business Aimed at Realizing a Recycling Society We are expanding our environmental business in the ferrous raw material field to help realize a society that’s based on recycling. One way we do this is by selling iron scrap from demolition sites to steelmakers who use electric furnaces. Recognizing this use of cold steel resources as a growth field, we are currently expanding operations by engaging in trilateral trading between Japan and ASEAN countries such as Vietnam and Indonesia. We are also expanding our recycling business by handling RPF (Refuse Paper and Plastic Fuel), which can be burned instead of coal in the steelmaking process, as well as the slag that’s a byproduct of the steelmaking process, which can be used as a constituent in cement. Iron scrap Global Operating Locations ● Overseas representative office ● Overseas subsidiary ※As of July, 2015 Kobelco Trading (Shanghai) Co., Ltd. [Beijing Branch] Kobelco Trading (Shanghai) Co., Ltd. [Shanghai Head Office] Kobelco Trading Vietnam Co., Ltd. [Ho Chi Minh City Head Office, Hanoi Office] Shinsho American Corporation [Detroit Head Office] Shinsho Europe GmbH [Dusseldorf] Kobelco Trading India Private Limited [New Delhi Head Office] Middle East Representative Office [Dubai] Kobelco Trading India Private Limited [Chennai Office] Thai Escorp Ltd. Bangkok Head Office, Bo Win Branch, Ayutthaya Branch, Anatanakorn Branch Shinko Shoji Singapore Pte. Ltd. PT. Kobelco Trading Indonesia [Jakarta] 19 Shinsho American Corporation [Los Angeles Branch] Kobelco Trading Australia Pty Ltd [Brisbane Office] Kobelco Trading Australia Pty Ltd [Sydney Head Office] Main Products Handled by the Ferrous Raw Materials Division Ferrous Raw Materials Slag Titanium Materials Shinsho provides Kobe Steel with a reliable supply of iron ore, coking coal, limestone and other materials used in the steelmaking process. Wo r k i n g i n c o o p e r a t i o n w i t h Ko b e S te e l a n d ot h e r steelmakers, Shinsho provides a stable supply of slag in Japan and around the world. Shinsho supplies titanium sponge and scrap as a resource for such applications as the aerospace industry and water desalination plants. Coal for Boilers Alloy Steel Coke Breeze Shinsho supplies the coal and auxiliary materials used by Shinko Kobe Power Station, which generates up to 70% of the electric power used by the city of Kobe. There are many different types of alloy steel with a wide variety of characteristics. Shinsho has access to many sources of alloy steel in Japan and abroad. Coke breeze consists of small particles of coke that are a byproduct of the coke-making process. Shinsho supplies it to steelmakers who use electric furnaces as well as to alloy steel manufacturers. Materials for Making Iron and Steel Coal, iron ore, coke, pig iron for steelmaking, hot briquetted iron (HBI), iron scrap, stainless steel scrap, titaniferous ore, limestone, dolomite, alloy iron, zinc, electrodes, refractories, petroleum products, other auxiliary materials Others Main Customers Kobe Steel, Ltd. Kyoei Steel Ltd. Osaka Steel Co., Ltd. Nippon Koshuha Steel Co., Ltd. Kanto Steel Ltd. Kubota Corporation Titanium sponge, coke breeze, slag products, slag powder for blast furnaces, cement, Refuse Paper and Plastic Fuel (RPF), secondary cement products, iron sand, plastics, chemical products, titanium scrap, new materials, other auxiliary materials Main Suppliers Nippon Denko Co., Ltd. Osaka Special Alloy Co., Ltd. Kmew Co., Ltd. Sumitomo Osaka Cement Co., Ltd. Nippon Paper Lumber Co., Ltd. Name Main Products Supplied Kobe Steel, Ltd. Cold iron materials (pig iron, ore) Shinko Slag Co., Ltd. Slag products, coke breeze Glencore International AG Coal Peabody Coaltrade International Limited Coal Nittetsu Mining Co., Ltd. Limestone Sumitomo Osaka Cement Co., Ltd. Limestone Taiheiyo Cement Corporation Limestone Ube Industries, Ltd. Limestone Santhad Group Co., Ltd. Dolomite Kanna Shoten Co., Ltd. Cold iron materials (metal charge, iron scrap) Matsumoto Sangyo Co., Ltd. Iron scrap Osaka Titanium Technologies Co., Ltd. Titanium sponge Daio paper Corporation 20 NON FERROUS METALS Providing a Stable Supply of High-Quality Products That Support the Next Generation The Nonferrous Metals Division constantly monitors global developments and stays in the forefront by satisfying emerging needs. The main products we handle are aluminum and copper, but aluminum in particular has recently been in the spotlight. To reduce the burden humankind places on the environment, there has been a worldwide trend toward using aluminum to make automotive vehicles more lightweight and energy efficient. 21 OUR STRATEGY We Complete a Supply Chain That Satisfies Customers’ Exacting Requirements Aluminum has become essential in the transportation industry as a means of lightening the weight and improving the energy efficiency of automotive vehicles, rolling stock and planes. Making vehicles lighter is one way to reduce greenhouse gas emissions, and aluminum parts contribute to that goal. To date, We Meet Customer Needs the shift to aluminum has been seen primarily in Japan, North America and Europe, but because climate change is an issue that transcends national boundaries, it is fast becoming a global with High Value-Added trend that includes newly developed countries. Demand for copper is also on the rise, reflecting an increase in hybrid vehicles and automotive electronics, as well as the global dissemination of portable IT terminals that require connectors that are both strong and flexible. With our deep Products Processed at Our Own Localized Plants knowledge of various metal alloys, we serve as a crucial bridge between materials manufacturers and end users. To better serve diversifying customer needs. Shinsho has established an aluminum processing plant in China that enables us to go beyond simply finding suppliers and selling materials; now we can actually process the material ourselves to meet specific customer requirements. In this way we act as an important link in our client companies’ supply chain. Our Strength Lies in Our Technical Expertise as a Member of the Kobe Steel Group We at Shinsho fully understand the technical characteristics of the value-added aluminum and copper products we sell. Taking advantage of the technical resources we enjoy as a member of the Kobe Steel Group, we can go the extra mile to ensure that our customers get exactly what they need. Our processing facilities located in various locations throughout the world handle not just KOBELCO products but materials produced by other manufacturers in Japan and abroad. We are familiar with the characteristics of materials made by many different companies, which allows us to select and process the products that precisely match customer specifications. With a focus on operating locations in China and Southeast Asia, we have laid out a fine-tuned network that supplies products with the same high quality as those produced in Japan, giving customers the peace of mind that only comes from a trading company that is closely associated with quality manufacturing. Slitter line at Suzhou Shinko-Shoji Material Co., Ltd., an aluminum processing plant in China. 22 TOPICS 1 An Aluminum Extrusion and Processing Joint Venture Established in Vietnam with an Integrated Production System That Includes Melting, Casting and Final Processing Vina Washin Aluminum Co., Ltd is located in My Phuoc Industrial Park north of Ho Chi Minh City in Binh Duong Province, Vietnam. It is an integrated production facility engaged in melting, casting and processing operations with an output of aluminum extrusions and processed products. Until recently, there were no manufacturers in the ASEAN region that could produce the special alloys needed for precision equipment and motorcycle/automobile parts, making it necessary to import them from Japan. This joint venture takes advantage of the expertise of our partner company Washin Kogyo Co., Ltd., which has long experience extruding aluminum in an integrated production system. By introducing this system to Vina Washin Aluminum Co., Ltd Vietnam, it becomes possible for us to provide a local supply of high-quality, high-strength aluminum parts that improve the production efficiency of our customers and stabilize their supply chains. TOPICS 2 Bolstering Our Domestic Distribution System for Nonferrous Metals Shinsho acquired Kobelco Tsutsunaka Trading Co., Ltd. when the latter was established through an incorporation-type company split carried out by Tsutsunaka Metal Industry Co., Ltd. It became a Shinsho subsidiary and started operating in July 2014. Also, on May 1, 2015, Kobelco Tsutsunaka Trading acquired Korea Tsutsunaka & Namekawa Aluminum Co., Ltd. from Tsutsunaka Metal and renamed it KTN Co., Ltd. Tsutsunaka Metal Industry was a commission agent with a long history dealing in Kobelco Tsutsunaka Trading Co., Ltd. nonferrous metals, materials and finished goods primarily within Japan. It had many excellent customers in fields that Shinsho was particularly interested in, including automobiles, liquid crystals and semiconductor devices. This made it an ideal partner for generating a synergistic effect. KTN cuts, processes, and wholesales high-precision aluminum plate. As Shinsho’s first nonferrous processing and sales facility to operate in Korea, it contributes to a more efficient supply chain for overseas customers. KTN Co., Ltd. Global Operating Locations ● Domestic subsidiary ● Overseas representative office ● Overseas subsidiary ● Overseas affiliate ※As of July, 2015 Kobelco Precision Parts (Suzhou) Co., Ltd. Suzhou Shinko-Shoji Material Co., Ltd. Kobelco Trading (Shanghai) Co., Ltd. [Chengdu Branch] Kobelco Trading (Shanghai) Co., Ltd. [Guangzhou Branch] Shinsho Europe GmbH [Dusseldorf] Kobelco Trading India Private Limited [New Delhi Head Office] Middle East Representative Office [Dubai] Kobelco Trading India Private Limited [Chennai Office] Thai Escorp Ltd. Bangkok Head Office, Bo Win Branch, Ayutthaya Branch, Anatanakorn Branch Naito Asia Sdn. Bhd. [Kuala Lumpur] Shinsho (Malaysia) Sdn. Bhd. [Kuala Lumpur Head Office, Penang Office] Shinko Shoji Singapore Pte. Ltd. 23 Kobelco Trading (Shanghai) Co., Ltd. [Beijing Branch] Shanghai Shinsho Trading Co., Ltd. Kobelco Trading (Shanghai) Co., Ltd. [Shanghai Head Office] Kobelco Trading (Shanghai) Co., Ltd. [Dalian Office] Shinsho Korea Co., Ltd. [Seoul suburbs] Shinsho American Corporation [Detroit Head Office] KTN Co., Ltd. [Seoul suburbs] Shinsho Non-Ferrous Metals Corp. [Osaka] Kobelco Tsutsunaka Trading Co., Ltd. [Tokyo] Taiwan Shinsho Corporation [Taipei Office, Hsinchu Office, Taoyuan Office] Shinsho American Corporation [Los Angeles Branch] Shinsho (Philippines) Corporation [Manila] Kobelco Trading Vietnam Co., Ltd. [Ho Chi Minh City Head Office, Hanoi Office] Vina Washin Aluminum Co., Ltd [Ho Chi Minh City] PT. Kobelco Trading Indonesia [Jakarta] (Plus 4 joint ventures not listed) Main Products Handled by the Nonferrous Metals Division Aluminum Sheets Leadframes Copper Sheets and Strips for Electronic Applications Shinsho handles high-grade aluminum sheet made by Kobe Steel, one of the world’ s top aluminum manufacturers. With activities ranging from in-house processing to sales, we seek out new ways for aluminum material to meet the growing demands of the auto industry. Leadframes are indispensable for semiconductors. We supply semiconductor makers with high quality KOBELCO leadframes produced through an integrated system that covers every phase of the manufacturing process, from raw materials to final product. Kobe Steel produces high-quality copper alloy sheets and strips tailored to automotive terminals and connectors, leadframes that support smaller, higher density integrated circuits, and other applications. Shinsho supplies these materials in a wide range of industrial fields. Photoconductor Drums High-performance Deformed Heat Exchanger Tubes With the dissemination of color laser printers, demand for aluminum photoconductor drums is growing year by year. Engaged in both manufacturing and sales, we supply high-grade drum material to secondary processors, as well as components to printer manufacturers. Kobe Steel manufactures various types of copper tube with its world-leading thin-wall technology. By supplying p ro d u c ts fo r u s e i n a i r c o n d i ti o n e r s a n d oth e r h e at exchange applications as well as heating pipes, we contribute to the creation of a comfortable living environment. Aluminum and aluminum alloys in the forms of plate, bar, shapes, pipe, rod, wire and foil Aluminum Products Cast Products Precision aluminum and magnesium cast products Main Customers Kobe Steel, Ltd.※ Panasonic Corporation※ Inaba Denki Sangyo Co., Ltd.※ Sanken Electric Co., Ltd. Sumitomo Wiring Systems, Ltd.※ Fujisaki Kinzoku Co., Ltd. Furukawa Electric Co., Ltd. Pacific Engineering Corporation※ SWCC Showa Cable Systems Co., Ltd. Amagasaki Pipe Corporation※ Hitachi Appliances, Inc. Hoei Metal Co., Ltd. TS Inc. Kawasaki Heavy Industries, Ltd. Fuji Heavy Industries Ltd. Mitsubishi Electric Corporation※ Copper and copper alloy in the forms of sheet, bar, pipe, rod and wire; copper and copper alloy tube for heat exchange applications Processed Aluminum and Copper Products Par ts, products and half-finished products that primarily consist of aluminum or copper Copper, aluminum, zinc, magnesium, ingots, recycled ingots, general scrap Aluminum and Copper Material Yazaki Corporation※ Copper Products Fuji Springs Co., Inc. Sanoh Industrial Co., Ltd.※ Main Suppliers Name Main Products Supplied Kobe Steel, Ltd. Aluminum and copper sheets and bars, etc. Kobelco & Materials Copper Tube, Ltd. Copper tubes for air conditioning (inner grooved, smooth bore, deformed heat exchanging tube); copper tubes for construction and hot water supply (smooth bore, resin insulated) Shinko Leadmikk Co., Ltd. Leadframes, stampings Shinko Metal Products Co., Ltd. Condensate pipes, mold tubes for continuous steel casting Shinko Engineering Co., Ltd. Mobile power vehicles, winch mechanisms Kobelco Research Institute, Inc. Experimental research, target materials Shinko North Co., Ltd. Various types of processed aluminum products Shinko Aluminum Wire Co., Ltd. Aluminum alloy wires and rods, processed products made from aluminum wires and rods Shinko Kenzai Ltd. Products used in road building and civil engineering, structural materials Kobe Electronics Material (Thailand) Co., Ltd. Grooved and smooth bore copper tubes for air conditioning and other applications Kobelco & Materials Copper Tube (Malaysia) Sdn. Bhd. Copper tubes and secondary processing products Kobelco & Materials Copper Tube (Thailand) Co., Ltd. Inner-grooved and smooth bore copper tubes for air conditioning and other applications Singapore Kobe Pte. Ltd. Slitter-processed copper bars, leadframes Kobe Aluminum Automotive Products, LLC Forged aluminum parts for automobile suspensions ※Includes overseas group companies. 24 MACHINERY & ELECTRONICS Matching High-Grade Technologies with Market Needs to Generate New Business Focusing on industrial machinery and electronic equipment and materials, we supply high-quality products and services by matching leading-edge technologies from the Kobe Steel Group and other companies with market requirements. We are also exploiting networks across China, Southeast Asia and elsewhere to promote our business worldwide. 25 OUR STRATEGY Reliable Overseas Networks Are Our Strength In the Machinery & Electronics Division we handle products from Kobe Steel Group companies and a wide range of other manufacturers in the machinery and electronics/IT fields. Our role is to match these manufacturers’ advanced technologies with user requirements across the world. We also offer a worldwide procurement service to supply steel works and other industrial plants with equipment and materials Using Our Global Networks for a sourced from Japan and overseas. We have affiliated companies and overseas offices in China, Taiwan, South Korea, Southeast Asia, Dubai, Europe and America, and by linking them we are currently developing trilateral business tie-ups and expanding our import and export business. Flexible Response to Customer Requirements Both in Japan In addition we use our networks overseas for ventures to support Japanese customers locating manufacturing overseas, in joint investments in production sites and in funding for new and Overseas projects. The Division’s overseas business already accounts for more than 50% of the total, and the pace of globalization is expected to accelerate in the future. Optimizing Use of Personnel, Equipment, Financial Resources and IT for All-Round Customer Support The Machinery & Electronics Division provides customers with start-to-finish service. For Japanese customers planning to set up production outside Japan, we offer comprehensive service that provides support not only in sourcing and installing plant and equipment, but also addresses issues such as regulatory systems and import/export licenses, and offers after-service, once equipment has been installed, that covers maintenance, supply of parts, and plant overhaul. Depending on requirements we can also provide assistance with financial planning for production start-ups, for an all-round package of support making optimum use of human resources, hardware, finance and information. As we consolidate this support function, we plan to strengthen our overseas networks in India, Vietnam, Indonesia and elsewhere, aiming to give our customers complete and full-fledged service. Steam Star, screw-type compact steam generator 26 TOPICS 1 Bringing Specialized European Machinery and Equipment to Meet Diverse Needs Matsubo Corporation, a Group company, imports quality machinery and equipment sourced mainly from North America and Europe, for delivery to wide-ranging industrial sectors that include pharmaceuticals, foodstuffs, chemicals, paper-making and liquefied crystal displays. We have created a complete service for customer peace of mind, from preliminary provision of technical and product information before deliver y to an after-service including maintenance, modifications and upgrading. Also, through the tie-ups we have with local companies overseas we are focusing on exporting from Japan and other ways of expanding our global business. PI tablet double-sided printer TOPICS 2 A Full Line-Up in Environment and Energy Fields In the steam energy field we have a full product line-up to meet wideranging customer requirements. The MSEG (screw-type compact steam generator) makes ef ficient use of excess steam vented into the atmosphere at industrial plants, to generate electricity and help reduce CO ² . Other major products include the MSRC screw-type compact steam compressor and ‘Microbinary’, a high-efficiency compact binary generating system. We are also aiming for business growth in the solar battery field, in part through increased sales of silicon processing equipment to Taiwan and China. `Microbinary´ binary power generator Global Operating Locations ● Domestic subsidiary ● Overseas representative office ● Overseas subsidiary ※As of July, 2015 Kobelco Trading (Shanghai) Co., Ltd. [Beijing Branch] Kobelco Precision Parts (Suzhou) Co., Ltd. Kobelco Trading (Shanghai) Co., Ltd. [Chengdu Branch] Kobelco Trading (Shanghai) Co., Ltd. [Guangzhou Branch] Shinsho Europe GmbH [Dusseldorf] Kobelco Trading India Private Limited [New Delhi Head Office] Middle East Representative Office [Dubai] Kobelco Trading India Private Limited [Chennai Office] Thai Escorp. Ltd. Bangkok Head Office, Bo Win Branch, Ayutthaya Branch, Amata Nakorn Branch TES E&M Service Co., Ltd. [Bangkok] Shinsho (Malaysia) Sdn. Bhd. [KualaLumpur Head Office, Penang Office] Shanghai Shinsho Trading Co., Ltd. Kobelco Trading (Shanghai) Co., Ltd. [Shanghai Head Office] Kobelco Trading (Shanghai) Co., Ltd. [Dalian Office] Shinsho Korea Co., Ltd. [Seoul suburbs] Shinsho American Corporation [Detroit Head Office] Matsubo Corporation [Tokyo] Asia Chemical Engineering Co., Ltd. [Osaka] Taiwan Shinsho Corporation [Taipei Office, Hsinchu Office, Taoyuan Office] Shinsho American Corporation [South Carolina Branch] Aiken Wire Processing, L.L.C. Shinsho American Corporation [Los Angeles Branch] Kobelco Trading Vietnam Co., Ltd. [Ho Chi Minh Head Office, Hanoi Office] P.T. Kobelco Trading Indonesia [Jakarta] Shinko Shoji Singapore Pte. Ltd. (Plus 12 joint ventures not listed) 27 Main Products Handled by the Machinery & Electronics Division Steam Star Rotating machinery; compressors Standard compressors Meeting demands to save energy, the world’ s first screwtype micro steam generator delivers high-efficiency power generation not achievable with a turbine generator. Turbo, screw and reciprocating machinery for wide-ranging applications including gas, air and steam-related installations. An energy-saving line-up centered on screw-type equipment for air compressors and freezers that includes centrifugal and scroll models. Tire and rubber machinery Arc ion plating ( AIP) plant Target materials A broad line-up of tire and rubber machiner y used for vehicles, construction machinery etc., that includes rubber kneading and tire vulcanizing machiner y, and testing equipment. Equipment acclaimed both in Japan and overseas that includes AIP plant and roll coaters (roll-to-roll coating) for newly developed and high-function materials and other advanced applications. Our aluminum alloy target material based on spray-foaming technology achieves high consistency and fine crystallization, and is popular as a coating material for wiring for LCD panels. ( screw-t ype micro steam generator) Chemicals, food processing equipment Iron and steel, non-ferrous metal related equipment Electronic and IT equipment Processing, kneading and forming ; reacting, mixing and drying; pipe-laying work Steelmaking, rolling plant, forming and processing, transportation, installation and maintenance Environment and energy-related equipment General industrial equipment Air and gas-related, steam-related, electrical-related, waterrelated High-function products, brakes and clutches, vacuum and sintering furnaces, industrial furnaces, weighing equipment, filling and packaging equipment, crushing balls, motors, reduction gears, bearings, fabricated products Sputtering target materials, FPD-related, hard disk-related, semiconductor-related, solar batteries Main Customers Main Suppliers Kobe Steel, Ltd.※ Bridgestone Corporation ※ Kobelco Construction Machinery Co., Ltd.※ Sumitomo Rubber Industries, Ltd.※ Kobelco Cranes Co., Ltd.※ Mitsubishi Electric Corporation Tokuyama Corporation Kyoei Steel Ltd. Shin-Etsu Chemical Co., Ltd. Shenzhen China Star Optoelectronics Technology Co., Ltd. Denki Kagaku Kogyo Kabushiki Kaisha Hiyama e-Film (Suzhou) Mfg. Co., Ltd. Air Water Inc. AUO Crystal Corp. (Taiwan) Taiyo Nippon Sanso Corporation Samsung Electronics Co., Ltd. (South Korea) Sumitomo Electric Industries, Ltd.※ OCI Materials Co., Ltd. (South Korea) Denso Corporation※ PT Multistrada Arah Sarana Tbk (Indonesia) Name Main Products Supplied Kobe Steel, Ltd. T i r e a n d r u b b e r m o l d i n g , v u l c a n i z i n g , te s t i n g m a c h i n e s; e x t r u d e r s , m i x e r s , p l a s t i c s e q u i p m e n t, l a r g e c o m p r e s s o r s , s t e a m g e n e r a to r s , cold energy equipment, rolling equipment Kobelco Eco-Solutions Co., Ltd. Water treatment plants, water purification plants, cooling towers Kobelco Compressors Corporation Standard compressors, freezers Sinfonia Technology Co., Ltd. Vibrator y equipment, clutches and brakes, industrial motors Shinko Engineering Co., Ltd. Power generating plants, co-generation systems, conductors and testing devices Kobelco Research Institute Inc. Target materials, wafer inspection equipment Yiyang Yishen Rubber Machinery Co., Ltd. Tire and rubber machiner y Shimadzu Mectem, Inc. Heat treatment furnaces ※Includes overseas group companies 28 WELDING High Quality Welding The Welding Division at Shinsho Corporation supports a diverse range of manufacturing industries. In particular in recent years, we have been active in fulfilling welding requirements in projects in Thailand and other ASEAN countries, China and other locations overseas. In addition to welding materials we supply equipment such as welding robot systems and automated welding plant in comprehensive proposals for our customers. 29 OUR STRATEGY A Preeminent Lead in Value-Added Business Through Technical Prowess The Welding Division supplies welding materials used on site in industries such as shipbuilding and construction, construction m a c h i n e r y a n d ve h i c l e m a n u f a c tu r i n g, a n d at g e n e r ati n g stations and chemical e ngine ering plants. We also supply welding-related equipment such as welding robot systems. A characteristic feature of our business is our comprehensive approach putting together welding materials with automated Selected by Customers for systems for a complete advanced package. Shinsho’s greatest strength lies in our affiliation with Kobe High Value-Added Manufacturing Steel, one of Japan’ s leading companies. We supply some 800 welding-related branded items produced by Kobe Steel, and with our detailed technical support and capability to meet Support customers’ requirements, we are in a preeminent position in the high value-added business. The Welding Division of Shinsho Corporation directs efforts to technical projects in which we can rapidly assess needs with the necessar y technical know-how that has grown out of manufacturing, and offer realistic proposals matched to the application. Winning Customers’ Trust and Developing Overseas Business One foreseeable trend in the Japanese market is the growth in demand for construction for the 2020 Tokyo Olympic Games and related growth in demand for welding for steel frame construction. Fulfilling these requirements will be vital for the expansion of the Welding Division. Overseas, we see greater importance in the future in our long-term relations with customers to whom we supply welding equipment and robots, and provide maintenance. Shinsho currently places priority on setting up maintenance networks for our overseas locations. In Thailand, for example, we have a maintenance department set up within Thai Escorp Ltd. and we are building trust with our customers through regular checks and repairs of their equipment. We plan to extend such activities in the future, not just throughout the Asian region but also to North, Central and South America. Advanced welding technology utilized in construction of giant structures such as Tokyo Sky Tree 30 TOPICS Developing New Business in Line with North American Growth in the Auto and Construction Machinery Industries In line with the North American expansion of Japanese auto and construction machinery business, the Welding Division is actively promoting its welding-related equipment. As part of this, we have set up a manufacturing and marketing company, SC Tech de Mexico, S.A. de C.V. in Mexico making welding equipment units for Japanese auto body and auto parts manufacturers. Global Operating Locations ● Overseas representative office ● Overseas subsidiary ※As of July, 2015 Kobelco Trading (Shanghai) Co., Ltd. [Chengdu Branch] Kobelco Trading (Shanghai) Co., Ltd. [Guangzhou Branch] Beijing Representative Office Kobelco Trading (Shanghai) Co., Ltd. [Beijing Branch] Shanghai Shinsho Trading Co., Ltd. Kobelco Trading (Shanghai) Co., Ltd. [Shanghai Head Office] Shinsho Europe GmbH [Dusseldorf] Kobelco Trading India Private Limited [New Delhi Head Office] Middle East Representative Office [Dubai] Shinsho Trading India Private Limited [Chennai Office] Thai Escorp. Ltd. Bangkok Head Office, Bo Win Branch, Ayutthaya Branch, Amata Nakorn Branch TES E&M Service Co., Ltd. [Bangkok] Shinsho (Malaysia) Sdn. Bhd. [Kuala Lumpur Head Office, Penang Office] 31 Kobelco Trading (Shanghai) Co., Ltd. [Dalian Office] Shinsho American Corporation [Detroit Head Office] Shinsho Korea Co., Ltd [Seoul suburbs] Taiwan Shinsho Corporation Taipei Office, Hsinchu Office, Taoyuan Office Shinsho (Philippines) Corporation [Manila] Kobelco Trading (Shanghai) Co., Ltd. [Wuhan Office] Kobelco Trading Vietnam Co., Ltd. [Ho Chi Minh City Head Office, Hanoi Office] P.T. Kobelco Trading Indonesia [Jakarta] Shinko Shoji Singapore Pte. Ltd. Shinsho American Corporation [South Carolina Branch] Aiken Wire Processing, L.L.C. Shinsho Mexico S.A. de C.V. SC Tech de Mexico, S.A. de C.V. Shinsho American Corporation [Los Angeles Branch] Main Products Handled by the Welding Division Welding materials Welding equipment Kobe Steel welding materials we supply cover some 800 different branded items, from shielded metal arc welding rods to wire and flux for automated or semi-automated welding, and are widely acclaimed as technically sophisticated products suited to all welding needs. Welding equipment generates the arc necessary for welding. We handle many different types including shielded metal arc welding and CO ² arc welding kits. Welding Robot Systems Laser welding equipment Welding raw materials Welding robot systems offer personnel-free welding for steel frame construction, bridge beams, construction machinery and others. The fast and stable-quality welding our systems offer can meet the most complex user requirements. Laser equipment for cutting and welding. This is a noted new welding method and the market is expected to grow. Raw materials such as minerals, various metals, alloys etc. needed to manufacture welding materials are procured worldwide. Welding materials Materials for production Shielded metal arc welding rods, solid wires, flux-cored wires, submerged arc welding wires and fluxes, inert gas wires, and ancillary materials for welding use Welding-related equipment Alloys, metal powders, mining products, ilmenite, hoop materials (mild, stainless steel), plastics and plastic products, special steel wires, spools for welding wire, polypropylene, paper and cardboard products, packing materials Welding robots & FA systems, arc welders, low frequency resistance welders, laser welding equipment, laser cutting equipment, plasma cut ting machines, gas cut ters, stud welders, high pressure gas containers, low-energy automated welding equipment and peripheral devices, dryers, transporters, equipment and materials for brazing, dust collectors Main Industrial Fields Steel frames Construction machinery Chemical engineering installations Shipbuilding Bridges Automotive Chemical engineering Welding materials Steel frames Construction machiner y Heav y electrical Fabrication Others 32 GLOBAL STRATEGY Responding fast to requirements worldwide. There is still much we can do. Accelerating Our Global Business Shinsho Corporation Group’s long-term management vision is to grow into a global trading enterprise at the center of the Kobe Steel Group, fulfilling local requirements appropriately in different parts of the world. We have three targets as we expand our overseas presence: to expand and enhance global locations, boost overseas trading ratio, and strengthen trading company functions. 33 Strategies and Targets for Business Overseas - Long-Term Management Vision EUROPE MIDDLE E AST (¥billion) ○Expand business with European companies in Middle East and Asia, centering on Shinsho Europe, (Düsseldorf Germany). (¥billion) 50 35 25 7 ○Develop new business opportunities in Middle East region and Asia centering on machiner y and equipment, with Dubai representative office as the basic point. 0 ○Expand locations of Kobelco Trading (Shanghai). ○Expand transactions by expanding and enhancing locations of wire products processing, steel sheets coil center, aluminum coil center, tire machinery manufacturing, and welding material manufacturing. ○Investigation of entering into thick aluminum plate/informationrelated processing business. AUSTRALIA & OCEANIA ○Expand raw materials business with Shinsho Australia as the basic point ( Interest investment in iron ore and coal). 15 2009 ASIA 250 215 200 150 100 38 0 2009 ○Expand business in Vietnam and Indonesia (transforming Ho Chi Minh /Jakar ta of fices into local corporations). ○Stronger partnerships between locations in Thailand, Malaysia, Singapore, Philippines, Indonesia, Taiwan, and Korea. 2020 (¥billion) 230 250 200 150 100 105 50 0 2020 NORTH AMERICA ○Expand and enhance business investment type business centering on automotive wire products. ○Develop new business in machinery/IT and nonferrous metals units. ○Expand raw material business centering on new iron sources. 25 2020 (¥billion) 50 30 0 2009 CHINA 50 2009 2020 INDIA (¥billion) 150 105 100 50 37 0 2009 2020 (¥billion) 180 200 150 ○Develop and reinforce infrastructure of Kobe Steel Group for branching out into India. (Investigation of transforming New Delhi representative office into a local corporation, establishment of offices in Kobe Steel G roup’ s manufacturing locations such as Chennai.) 75 50 50 25 6 0 2009 2020 BR A ZIL ○Location for development of new businesses such as resources and energy. 120 (¥billion) future bases 100, 50 0 2009 2020 34 GLOBAL STRATEGY 1 Shinsho Osaka Seiko (Nantong) Corporation Aiming for greater cost merits CHINA TAIWAN KOREA Product processing here is followed by further processing at Ondo Shinsho Precision Technology for shipping automakers in Japan and Thailand. We utilize a system specific to China to minimize customs duties and reduce costs. ○Established: January 2013 ○Main activities: Cutting and chamfering, cold forging proce ssing and shaving processing for round stick of specialt y steel and impor t /expor t and trade of these products 2 China, Taiwan and South Korea are Asia’s focal points of the global economy. We are taking on new challenges to identif y local requirements and service customers. Shanghai Shinsho Trading Co., Ltd. Cornerstone for Shinsho Corporation’s trade in China We play a major functional role in arranging bonded and brokered trading business meeting Chinese regulations. Located in the Jinqiao Export Processing Zone, designated a free trade model zone, we ex p e c t f u r th e r g row th i n c o o p e r ati o n w i th Ko b e l c o Tr a d i n g (Shanghai) based on the years of trust we have built up locally. ○Established: April 1998 ○Main activities: I n te r n a t i o n a l t r a d e a n d consulting of trade, proxy ser vices for B to B in bonded district, commercial simple processing 3 Kobelco Trading (Shanghai) Co., Ltd. Using Chinese market to drive Shinsho Corporation’s global business With trading rights for imports and sales activities within China, we cover all of Shinsho’s five business fields. We are developing business in China using the know-how we have built up as the central trading arm of the Kobe Steel Group. We aim to be a ‘functional trading company’ placing particular emphasis on IT, distribution and maintenance functions. ○Established: September 2006 ○Locations: Shanghai Head Office, Beijing Branch, Guangzhou Branch, Chengdu Branch, Dalian Office, Wuhan Office ○Main activities: Import/export and trade of products and semimanufactures of iron and steel, raw materials, nonferrous metals, and electronics, machines, apparatus, facilities and related parts, materials of welding. Commission substitution, import/export duties mentioned above, maintenances of machines, apparatus and facilities, and other related services 4 Ondo Shinsho Precision Technology Corporation ○Established: February 2012 ○Main activities: Manufacture and sales of differential gears, engines, transmissions and pedal assemblies for vehicle use Subsidiary 35 Affiliated company Overseas representative office 5 Taiwan Shinsho Corporation 9 Suzhou Shinko-Shoji Material Co., Ltd. Building networks to fulfill sophisticated requirements Supplying high-value products meeting customers’ exacting requirements Dealing in high value-added products, we are working to identify high-quality low-cost vendors. Utilizing our acknowledged strength in communications, Taiwan Shinsho is building cooperative networks between vendor companies and working to provide solutions for sophisticated technical issues. Set up as China’s one and only specialist aluminum coil center, we supply a range of precision-processed aluminum materials matching customize d consumer re quire ments, and of fe r wide-ranging customer support. ○Established: July 2006 ○Main activities: Slit shirring processing and sales of aluminum rolling materials ○Established: November 1992 ○Locations: Taipei Office, Hsinchu Office, Taoyuan Office ○Main activities: Import/export and trade of iron and steel, nonferrous metals, machines, information device s and ele ctronic mate r ials and welding-related equipment 10 Kobelco Precision Parts (Suzhou) Co., Ltd. Promoting new business in cutting and sales of aluminum plate Specializing in small-quantity production of a wide range of goods, we prioritize customer needs and supply high value-added products. With a new venture business in stocking, cutting and sales of aluminum plate, we plan in the future to move further into source materials, in addition to processing. We also plan to strengthen our production capacity. 6 Beijing ○Established: December 2010 ○Main activities: Manufacturing aluminum component for liquid cr ystal and solar panel production device, bonding of target materials, and cutting processing of the aluminum plate and sale of products Seoul 11 12 13 1 9 4 10 7 Chengdu 2 3 Shanghai Chongqing 11 Taipei 5 8 6 Shinsho Korea Co., Ltd. Supporting customers in wide-ranging business Our wide-ranging business covers all five of Shinsho’s divisions, and we are developing considerable potential through cross-connections to create new initiatives. Our future objectives focus on high valueadded business as we seek to boost sales of target materials. ○Established: January 2005 ○Main activities: Impor t /expor t and trade of electronic materials, nonferrous metals, steel plate, car component (castings), raw materials, welding materials, Kenny coat coating, facilities and component for chemical plant Beijing Representative Office ○Opened: March 1980 7 Kobe Special Steel Wire Products (Pinghu) Co., Ltd. 12 KTN Co., Ltd. ○Established: May 2015 ○Main activities: Cutting, processing and wholesales of high-precision aluminum plates ○Established: November 2007 ○Main activities: Manufacture and sales of cold heading (CH) and bearing steel wire 8 VSC Shinsho Company Limited ○Established: July 1993 ○Main activities: Funding and management of China coil center, import/ export and trade of steel, nonferrous metals and machinery 13 Allmet Co., Ltd. ○Established: August 2002 ○Main activities: Sales of titanium materials, processing and sales of products of titanium and other special metals 36 1 GLOBAL STRATEGY SOUTHEAST ASIA AUSTRALIA Shinsho (Philippines) Corporation From our core business of nonferrous metals and welding materials to new product development The strength of Shinsho in the Philippines lies in being able to import and market to the export-processing zone free of tax. Currently we specialize in sales of aluminum can stock, sheet copper for semiconductors and welding materials for the shipbuilding industry. In the future we aim to increase our business handling ferrous raw materials and steel products and take on new projects. Hanoi ○Established: August 2005 ○Main activities: Import/export and trade of nonferrous metals and welding products Chiang Mai 2 Bangkok 3 13 Ho Chi Minh City The economies of Southeast Asia are growing fast. With the expansion of their affluent middle classes the region is of even greater importance and markets are getting more extensive. Development and stable provision of raw materials from Australia is another important mission for us. Shinsho Corporation’s group ne t wor k ex tends w idely across Southeast Asia and Australia. 4 2 Thai Escorp Ltd. 12 Kuala Lumpur 5 Founded in 1988, we continue to grow as a long standing enterprise well rooted in the region Thai Escorp addresses diverse requirements in four business sectors: steel and ferrous raw materials, nonferrous metals, machinery and electronics, and welding materials. Our objective is to boost auto and air-conditioning related business that is forecast as a growth area in Thailand, and to increase machinery business projects for Japanese corporate customers. ○Established: May 1988 ○Locations: Bangkok Head Of fice, Bo Win Branch, Ayut thaya Branch, Amata Nakorn Branch ○Main activites: Import/export and trade of iron and steel, raw materials, nonferrous metals, machines and welding products 3 TES E&M Service Co., Ltd. ○Established: March 2007 ○Main activities: Contract of the construction and maintenance services for machines 4 Kobelco Trading Vietnam Co., Ltd. Vina Washin Aluminum Co., Ltd set up to target the ASE AN region In addition to steel products, we are developing business in other fields including nonferrous metals and machinery. We recently invested in a joint venture with Washin Kogyo Group and set up Vina Washin Aluminum for aluminum extrusion processing. We are supplying high quality, high strength aluminum products to regional markets. ○Established: June 2011 ○Locations: Ho Chi Minh Head Office, Hanoi Office ○Main activities: Import/export and trade of iron and steel, raw materials, nonferrous metals, machines, electronic materials and devices, and welding materials, consulting services mentioned above Subsidiary 37 Affiliated company 9 Singapore 7 11 Jakarta 10 8 5 Shinsho (Malaysia) Sdn. Bhd. 7 Shinko Shoji Singapore Pte. Ltd. Heightened functions as a trading enterprise for robust support of customers’ businesses Demonstrating our all-round strengths as a manufacturer and trading enterprise The OPC drum business is our main type of nonferrous metal business in Malaysia. Working closely with customers and suppliers we offer stable, localized provision of the best materials for price and quality, on the basis of a quick reading of market data. We are also shifting from distribution to project investment, building up a financing arm as we strengthen trading company functions. Shinko Shoji Singapore’s marketing activities demonstrate its comprehensive strength in wide-ranging segments, including nonferrous metals, welding materials, ferrous raw materials and steel. Notable in recent years has been the development of exports and trilateral trading in nonferrous metal products, welding materials and ferrous scrap to the Philippines, Vietnam and Indonesia. ○Established: September 1987 ○Locations: Kuala Lumpur Head Of fice, Penang Branch ○Main activities Import/export and trade of iron and steel, nonferrous metals, machines, electronic materials and devices, and welding products ○Established: September 1989 ○Main activities: Import/export and trade of iron and steel, raw materials, nonferrous metals, machines and welding products 1 Manila 8 PT. Kobelco Trading Indonesia Setting up six joint ventures with auto parts makers The company’s strengths are its personnel and product knowledge fostered over 20 years of corporate history. By setting up joint ventures with auto par ts makers we can guarantee stable product supply, and in the future we aim to develop follow-up services in each of our business fields and further develop our stock-holding function. ○Established: May 2011 ○Main activities: Import/export and trade of iron and steel, raw materials, nonferrous metals, machines, electronic materials and devices, and welding materials Brisbane Sydney Canberra 6 Melbourne 9 ○Established: November 1998 ○Main activities: Processing aluminum tubes for photoreceptor drums 10 6 Kobelco Trading Australia Pty Ltd Extending our territory and focusing on trilateral business Ferrous raw materials, coal for power generation, and cold steel source for steelmakers who use electric furnaces are business growth areas. Supplying raw materials to Kobe Steel, we are extending our territory to steam coal and iron ore for IPP (independent power producer) business. We are also promoting trilateral business in ferrous scrap among ASEAN countries. ○Established: November 1996 ○Locations: Sydney Head Office, Brisbane Branch ○Main activities: Investment in production and marketing for high grade raw coal, import/export and trade of steel, ferrous raw materials, nonferrous metals, machinery etc Naito Asia Sdn. Bhd. PT. Futabadenshi Indonesia ○Established: February 2013 ○Main activities: M a nu fac tu re a nd s a l e s of produc ts for m eta l molding parts 11 PT. Shinsho K’ mac Precision Parts Indonesia ○Established: October 2012 ○Main activities: Import/export and trade of auto parts 12 Vina Washin Aluminum Co., Ltd ○Established: August 2013 ○Main activities: Manufacture and sales of aluminum tubes, bars, extrusions and fabricated products 13 Ondo Shinsho (Thailand) Co., Ltd. ○Established: February 2013 ○Main activities: Manufacture and sales of transmission parts for transportation equipment 38 GLOBAL STRATEGY 1 Shinsho American Corporation Building supply chains in raw materials NORTH & CENTRAL AMERICA The US economy continues to see slow but steady growth. Auto sales are holding up well and Mexico continues to grow as a production base for compact cars for the U S market. Shinsho Corporation maintains a network of bases in North and Central America. We are building supply chains in the automobile industry, from sales of source materials to secondary processing and sales, and also parts manufacture and sales. Our product quality is widely acclaimed in the industry. We are planning to widen our activities, including moving into the energy field. ○Established: August 1966 ○Locations: Detroit Head Office, Los Angeles Branch, South Carolina Branch ○Main activities: Impor t /expor t and trade of products of iron and steel, raw materials, nonferrous metals and electronic machine parts 2 Aiken Wire Processing, L.L.C. ○Established: July 2015 ○Main activities: Wire drawing for bearing steel Los Angeles 4 Guanajuato 3 5 Mexico City Subsidiary 39 Affiliated company 3 Shinsho Mexico S.A. de C.V. 6 Grand Blanc Processing, L.L.C. Production base for compact cars for the American markets Meeting growing demand from Japanese auto parts makers Shinsho Mexico’ s strength lies in our ability to supply wire material and steel rods for auto manufacturing at excellent quality and price for on-time delivery. We are also able to market a broad selection of steel materials from Kobe Steel and other manufacturers around the world, including the US, Mexico and China. With Shinsho American Corporation as its main investor, Grand Blanc Processing undertakes secondary processing of steel wire and wire products, with order books currently swelling for fastener-use materials for auto parts makers. We are actively addressing expanding needs through cooperation with the Kobe Steel Group as production facilities are increased. ○Established: April 2013 ○Main activities: Import/export and trade of iron and steel products ○Established: September 1995 ○Main activities: Second processing of the wire rod products 7 Shinsho-Meihoku Wire, Inc. North American node contributes to just-in-time production Shinsho-Meihoku Wire is largely a warehousing business handling materials for auto production. We stock and deliver materials traded by Shinsho American Corporation for Japanese auto parts makers, to meet our customers’ just-in-time production schedules. Customers benefit by avoiding excess production. 8 1 6 9 11 ○Established: November 2001 ○Main activities: Warehouse Chicago New York 7 2 10 8 Dexter Fastener Technologies, Inc. ○Established: April 1989 ○Main activities: Manufacture and sales of high-strength fasteners for auto use 4 Kobelco CH Wire Mexicana, S.A. de C.V. ○Established: September 2014 ○Main activities: Manufacture and sales of cold heading (CH) steel wire 5 SC Tech de Mexico, S.A. de C.V. ○Established: March 2015 ○Main activities: Manufacture and sales of welding equipment unit, sales of imported welding equipment unit, processing and sales of parts for maintenance and modifications, sales of welding robots, electric power sources and various consumables 9 Shinsho K’ mac Precision Parts, L.L.C. ○Established: September 2003 ○Main activities: Import/export and trade of auto parts 10 Aiken Precision Technologies, L.L.C. ○Established: May 2002 ○Main activities: Manufacture and sales of cold forged parts 11 SST Forming Roll, Inc. ○Established: September 1989 ○Main activities: Import/export and trade of forming rolls 40 GLOBAL STRATEGY INDIA UNITED ARAB EMIRATES GERMANY Shinsho Corporation is expanding into new business fields as it grows into a global trading enterprise at the center of the Kobe S teel Group 1 Shinsho Europe GmbH Breaking into European markets with value-added products As Shinsho Corporation Group’s sole base in Europe, we are importing and exporting steel, nonferrous metals, machinery and welding materials largely in European markets, as well as gathering information on European automakers, and undertaking surveys of markets and suppliers. We are aiming for global provision of high value-added products to supply European automakers and parts makers. ○Established: January 2009 ○Main activities: Impor t /expor t and trade of iron and steel, raw materials, nonferrous metals, machines and welding products 2 Middle East Representative Office Creating a foundation for Shinsho Corporation in the Middle East Shinsho Corporation considers the Middle East an important base from which to develop global business, and set up the Middle East Representative Office as a starting point for Kobe Steel Group globalization. We are currently actively seeking business partners in the region, as we open up new business ventures in steel, nonferrous metals, and machinery. ○Opened: July 2010 3 Shinsho K’ mac Precision Parts ( India) Private Limited ○Established: May 2012 ○Main activities: Import/export and trade of auto parts Subsidiary 41 Affiliated company Overseas representative office 4 Kobelco Trading India Private Limited 5 Kobelco Plate Processing India Private Limited Linking countries of South Asia with the ASE AN region for business challenges in new fields Aiming for an established position in India as a plate processing business With cooperative ties with Shinsho subsidiaries in the ASEAN region, we are developing trilateral business boosted by the fast-growing Indian market, linking up other South Asian countries with the ASEAN region. In addition to dealing in our main products of steel, nonferrous metals and industrial machinery, we plan to stimulate new demand by expanding our export business. Kobelco Plate Processing India has grown largely from plate processing and fabrication for use in construction machiner y. With high-level processing technologies for steel plate products, we plan to expand our production capacity, boosting productivity in fabrication, and in this way we aim to establish a robust presence as a plate processing company. ○Established: January 2012 ○Main activities: Products and sales of thick steel plate and parts for can manufacture ○Established: March 2011 ○Locations: New Delhi Head Office; Chennai Office ○Main activities: Impor t /expor t and trade of iron and steel, raw materials, nonferrous metals, machines, electronic materials and devices, and welding materials 1 Dusseldorf (Germany) 4 New Delhi (India) Dubai (UAE) 3 Jaipur 2 5 Chennai 42 ENVIRONMENT, SOCIAL RESPONSIBILITY, GOVERNANCE [ ESG ] Corporate Governance In the management of its businesses, the Group regards the strengthening of corporate governance as an issue of the upmost importance. Our basic policy towards corporate governance is to promote business that is wor thy of the trust of shareholders and clients by maintaining the integrity of management and strengthening the competitive position of the Company through swift and flexible adaption to changes in the business environment. Furthermore, the Group places great importance on compliance management and in light of this it has constructed systems for compliance with laws and regulations and risk management. These systems include the establishment of a Compliance Committee, an Investment and Loan Committee, and an Environment Committee, as well as the development of a system for security export control. In addition, in order to ensure the integrity in business activities, in accordance with the administrative authority regulations, the Staff Department at the Head Office utilizing their specialist knowledge conducts preliminary reviews of decisions made. The Department also monitors the performance of business conducted by the Group while cooperating with the Business Planning Office placed at each sales section and if necessary makes suggestions for improvement and provides specific advice and instruction. Moreover, the Auditing Department and Accounting Auditors make efforts to strengthen their partnership through regular exchange of opinions and endeavor to monitor legality and fairness in the business performed by each department. We aim to not only ensure compliance through these systems and activities, but to also enhance and maintain the integrity and transparency of our business and prevent management risk. An outline of the Company's corporate governance and internal control system is described below. SHAREHOLDERS MEETING Selection Selection Audit Board of Directors (Directors) Audit &Supervisory Board (Members) Selection Selection President & CEO Compliance Committee Accounting Auditors Security Export Control Council Environment Committee Management Council Investment and Loan Committee Selection Sales Sections and Management Sections 43 Cooperation Auditing Department Executive Officers Accounting Audit internal audit As we play our part in support of manufacturing activities worldwide, we are active in our day-today business tackling issues related to the environment, wider society and corporate administration or governance. This report sets out our approach to these issues. Compliance Environmental Policy We enacted Code of Compliance and Ethics of Shinsho Corpo- To actively address global environmental problems, we set ration, including its group companies, in August 2003 to clearly up specify the compliance rules to be followed by all Managing Offi- ISO14001 accreditation on 18 October 2000. cers and Employees. an internal Environment Committee and gained In the period up to the present time, environmental In addition, Compliance Commit tee, which comprises the management activities have been reviewed by the Environ- President, Managing Officers and External Lawyers, has been ment Committee on a periodic basis for ongoing upgrad- established as an Advisory Body to the Board of Directors. ing. We contribute to society by promoting environmental T h e C o m plian ce Commi t te e ha s t wo re gul a rl y sc h edu led management, including to our affiliated companies. meetings each year to formulate policies and measures for compliance and implementation of the policies. The Credit and Legal Department is responsible for carrying out company-wide compliance promotion, and it focuses on the planning and implementation of stratified compliance training per theme, consultation for compliance, summarizing the status of compliance based on the sur vey result, and operation of whistleblowing system, etc. Code of Compliance and Ethics of Shinsho Corporation and its group companies ○ Basic Philosophy Standing our Corporate Philosophy, “with our Corporate Motto of Integrity, we are committed toward securing ⅠBasic Policy prosperity for our clients and shareholders through the ・ We are committed to sustaining a high standard of corporate ethics and conduct business practices that is trusted by society. ・ We are committed to complying with the laws, regulations and company rules, and conduct fair and equitable business. creation of new value”, we deeply recognize that strong drive against environmental issues is the most indispensable for the subsistence and activities of the Company and eventually challenge to realize Sustainable Growth. ⅡCode of Conduct 1.Fair Trading Observe social rules, laws and regulations, and promote fair and free competition. 2.Compliance with International Laws and Regulations Observe international laws and regulations, and respect the culture and customs of each nation and regions. 3.International Cooperation Devote ourselves to international cooperation, and act with a global perspective. 4.Security Trade Control Ensure strict compliance of security trade control, and contribute for the maintenance of international peace and security. 5.Disclosure of Corporate Information Disclose corporate information in a timely a n d a p p ro p r i ate m a n n e r, a n d m a i nt a i n transparency of management. 6.Ensure the Reliability of Financial Reporting Maintain the fitness of financial statements and the reliable financial reporting to ensure the accuracy. 7.Protect Confidential Information Strictly protect confidential information such as customer information, and honor confidentiality of information from being divulged to others without justifiable grounds. 8.Prevention of Insider Trading Do not engage in any unfair stock trading or other similar act that may be perceived as insider trading. 9.Promotion of Environmental Preservation Take an active approach to global environmental issues, and remain committed to the task of caring for the natural environment. 10.Respect for Intellectual Property Rights Protect and respect intellectual proper ty rights. 11.Interaction with Local Communities Conduct social contribution activities in the local communities as a good corporate citizen. 12.Respect for Human Rights Respect the human rights of others, and do not engage in all forms of unfair discriminatory treatment. 13.Prevention of Political Corruption Avoid any potential acts of briber y, and sustain decent relationships with government officials. 14.Confrontation with Antisocial Forces Stand firmly against antisocial forces and organizations. ○ Core Values 1. Environment-Friendliness Through our Corporate activities, we protect global environment and prevent any pollution, according to this Corporate Environmental Policy, We, furthermore, foster and popularize the environment-considered products all over the world. 2. Compliance with Environmental Legislation and Regulations Through our Corporate activities, we comply with relevant environmental legislation and regulations, both international and domestic, and with other self-imposed commitment. 3. Effective Use of Natural Resources and Energy We effectively use natural resources and energy, recycling and preserving natural resources. 4. Establishment of Environmental Management System According to this Environmental Policy, we establish and maintain our environmental objects and targets, review them periodically and achieve continual improvements through our environmental conservation activities. 5. Availability to The Public This Environmental Policy be notifies to all employees and made public. 44 Security Trade Control System From the viewpoint of upholding international peace and security, we are actively implementing security trade control based on currency exchange and overseas trading legislation, in order to keep from terrorist hands weapons, commodities or technologies that could be turned to military use. AEO Reciprocal Agreements Date concluded Country We have set up a voluntary control system related to security trade control June 2007 New Zealand – USA as required by Japan’s Ministry of Economy, Trade and Industry (METI), and May 2008 Japan – New Zealand separate export licenses. This has meant in practice creating a trading June 2008 Canada – USA monitoring system for export control throughout the company, sharing the June 2008 Jordan – USA departments responsible for export control, and regular internal audits and June 2009 Japan – USA staff training on export control. July 2009 EU – Norway as an Authorized Economic Operator (AEO), indicating full compliance with July 2009 EU – Switzerland customs authorities. This eliminates customs inspections of exports and June 2010 Japan – Canada For trade between Japan and other countries with which we have reciprocal June 2010 Canada – South Korea agreements, customs procedures such as document screening and inspection June 2010 Canada – Singapore June 2010 Japan – EU June 2010 South Korea – Singapore June 2010 South Korea – USA January 2011 Andorra – EU May 2011 Japan – South Korea June 2011 South Korea – New Zealand June 2011 Japan – Singapore May 2012 EU – USA June 2012 China – Singapore November 2012 Taiwan – USA June 2013 China – South Korea July 2013 Singapore – Taiwan October 2013 China – Hong Kong November 2013 India – Hong Kong December 2013 Israel – Taiwan February 2014 Hong Kong – South Korea March 2014 South Korea – Mexico May 2014 China – EU June 2014 South Korea – Turkey June 2014 Japan – Malaysia June 2014 Hong Kong – Singapore June 2014 Israel – USA October 2014 Mexico – USA December 2014 Singapore – USA have obtained special trading authorization that bypasses the need for METI’s latest regulations and export trends at meetings of representatives from all Also, in March 2008 we obtained certification from the customs authorities simplifies other procedures to speed up our exports. are reduced both in Japan and the trading partner, which cuts logistical lead-times. Effect of AEO Certification Japan Trading partner With no AEO certification Lead time Exporter Export Import Importer Without reciprocal Inspection and paperwork certification reduced AEO Exporter Export Import With reciprocal Inspection and paperwork reduced (in Japan) Inspection and paperwork reduced effect of reciprocal agreement Importer Reciprocal agreements can bring added benefits Source: AEO Compendium April 2014 AEO Exporter Export Import Importer There are more than 24 bilateral AEO tie-ups around the world, 7 of which involve Japan. Dif fering enterprises included in the AEO system in partner countries is one of several factors that may affect the benefits of reciprocal agreements in practice. 45 Credit Control An electronic system is used for control of credit limits in Japan and overseas, for all procedures from application to approval, in order to boost speed and efficiency. In the case of credit control in overseas subsidiaries, we try as far as possible to preclude bad debt through periodic checks and sharing of information on the status of debt recovery etc. undertaken by the legal affairs screening department and the subsidiary’s relevant departments. credit agency data sales data transactions data electronic database client summary credit limit application form financial analysis credit agency corporate data client procurement list claims, liabilities stock application forms credit control-related data Judgment made of client creditworthiness based on the above data Overseas Training Programs The Group is actively securing and training human resources with experience in global business, in order to create a sound business foundation from which to realize our long-term business management vision. As part of this in 2010 we launched a program to train young Japanese employees overseas. This program is designed for all non-specialist staff with careers of no more than ten years in the company. Those selected are sent to work with subsidiary companies in the US, China, Thailand and other locations. The intention of overseas training is that participants acquire language skills and develop the ability to communicate easily with people from different cultural backgrounds. Young employees who have already completed this program are now working in our offices in Japan and overseas. We are also recruiting foreign students in Japan to become part of our global team, as well as arranging training in Japan for staff in other countries. In this way we are fostering human resources competent in handling global business in the future. Eligibility Non specialist staff with no more than 10 years’ employment in the company (5 divisions, administrative staff) Locations Decided according to individual’s job etc. Courses Decided on basis of assessment in English/Chinese, or by recommendation Type of training Destination 12-month course Language and business training Subsidiary or Group company 6-month course Language and business training Subsidiary or Group company 3-month course Language training Language school (located close to subsidiary) 46 http://www.shinsho.co.jp/english 15071000 -F