Sojitz Corporation of America

El día de ayer nuestro CEO Rogerio Marcondes Barros y el equipo de nuestro socio Sojitz Corporation of America participaron de una reunión en el Ministerio de Economía y Finanzas del Perú con la viceministra Denisse Miralles con el objetivo de reafirmar nuestro profundo compromiso de seguir con las inversiones en infraestructura social, un pilar importante que tiene que ir de la mano con el crecimento económico del país. Como grupo económico seguiremos trabajando para promover?la mejora de la salud de los ciudadanos a quienes siempre ponemos al centro de nuestras operaciones.

What’s in a name? Today kicks off the “Tuesday Trivia” series, where we’ll share interesting facts about our company on the 2nd Tuesday of each month. Our first post dives into the meaning behind the word “Sojitz.” If we break down Sojitz into its Japanese syllables, we get “so,” “ji,” and “tsu” (which is simplified to “tz” for easier pronunciation in English). Using Japanese characters called “kanji,” originally derived from Chinese, so-ji-tsu can also be written as 双 (so), meaning double, and 日 (jitsu), meaning sun. So-jitsu, therefore, means “two suns.” So why name the company “Two Suns”? The answer lies in the history of the two?storied Japanese trading companies Nissho Iwai (日商岩井) and Nichimen (日綿) that merged to create Sojitz in 2004. You’ll notice that both names have the 日 character, which can be read nichi, jitsu, or hi depending on the kanji with which it is paired. And there you have it—the new entity became 双日 (Sojitz), reflecting Nissho and Nichimen’s legacy in a fresh way. And speaking of the sun, the Japanese word for Japan is Nihon (日本), which also has the sun character…the Land of the Rising Sun!?

Sojitz Corporation of America and Sojitz Aerospace America Corporation have made a joint donation to support the American Red Cross in its relief and recovery efforts responding to the Southern California wildfires. As communities in the Los Angeles area deal with the aftermath of destruction that engulfed entire neighborhoods, we hope that help reaches all of those who need it as quickly as possible. Below: American Red Cross distributing relief supplies in neighborhoods affected by the wildfires. Photo by Jason Colston/American Red Cross American Red Cross Los Angeles Region

Sojitz, Champion Iron, and Nippon Steel Corporation have agreed to work together on a feasibility study and potential development of the Kamistiatusset (Kami) Project in Newfoundland and Labrador, Canada. Through the electric arc furnace method, the Kami Project aims at drastically reducing CO2?emissions while producing Direct Reduction ("DR") grade quality iron ore that is indispensable for steel production. If the partners decide to go through with a final investment decision post-feasibility study, development and construction costs will be shared in accordance with their respective ownership interests. Upon closing these interests would be Champion at 51% equity interest in Kami with minority positions by Nippon (30%) and Sojitz (19%). Nippon and Sojitz would be entitled to an allocation of the iron ore produced from Kami in accordance with their proportional ownership.?

“Trading companies” like Sojitz are famously wide-ranging in their business activities, handling everything “from ramen to missiles” as the old saying goes. Sojitz’s recent transactions in the U.S. certainly seem to support that diversity. In just the last half year alone, we’ve invested in an electrical company, a sushi distributor, and a rail car repair enterprise. But how did we get to where we are now? More generally, how did trading companies evolve? An original manga series traces the story of Sojitz’s birth in the late 1800s and it’s transformation over time. Part 1: The Sojitz Pioneers When Commodore Perry’s fleet arrived in Japan in 1853, the country had almost no modern industries. A relatively short time later Japan had transformed into a powerhouse with a trade surplus. Starting in the Meiji Era, Sojitz’s original companies — Suzuki & Co., Iwai & Co., and Japan Cotton Trading — ?led Japan’s industrial revolution with innovative ideas and an entrepreneurial spirit that Sojitz carries in its DNA to this day.? https://lnkd.in/eXtBHMyR https://lnkd.in/eBUZnfyC

The circular economy endeavors to reduce waste and extend product life cycles. As part of Sojitz’s entry into this sphere, in 2023 Sojitz acquired 34 percent of the shares of eCycle Solutions, based in Mississauga, Ontario. A wholly owned subsidiary of JX Metals (Japan’s leading copper smelter and refiner), eCycle is Canada’s largest collector and processor of electronic waste – discarded electronic devices and household appliances. As the electronics and digital boom shows no signs of slowing down, resource recycling is becoming an increasingly important issue, with a growing need to address natural resource depletion and reduce environmental impacts. eCycle operates recycling sites with well-established collection networks across Canada where e-waste is sorted into copper, precious metals, iron, aluminum, and plastics, and then sold as recycled materials. eCycle is also a leader in IT Asset Disposition (ITAD)?services. Sojitz seeks to position ITAD as one of its core businesses and through “urban mining” create a comprehensive recycling platform for metals and materials.?

Where there's no path, make one.

Much has evolved over the last two decades. Both at Sojitz and within society at large, the changes have been enormous. Let’s start with the immediate post-merger Sojitz of 2004 and the Sojitz of today. It has been quite a turnaround. Fiscal year 2003 (ending April 2004) concluded with a Net Loss in excess of USD $200 million!?Fast forward to the 2023 fiscal year, which came in at a Net Profit of over USD $600 million, and a significantly changed balance sheet/business portfolio.?What an evolution! (Annual reports: https://lnkd.in/ecZN-WyX) As for society, well, digitization and interconnectedness has continued apace! (Comparison chart below). Who remembers MySpace?!

Sojitz Corporation of America acquired railcar repair company Washamerica Inc. over the summer. Doing business under the “BW Services” (or “BWS”) brand, the Texas based company has been providing repair and qualification services for tank cars since 1967. Texas has the most extensive rail network of any state in the U.S. and the BWS shop in Angleton is adjacent to a bustling Union Pacific railyard. Working mostly with major U.S. oil companies, BWS has established a strong customer base by providing short turnaround time and high-quality service. Sojitz continues to build out its network in the railcar repair industry that started with the 2015 acquisition of the Canadian maintenance, repair, and overhaul (MRO) company CAD Railway Industries Ltd. Industries (Quebec). In 2017, Sojitz purchased Caltrax Inc (Alberta), which provides railcar repair services in Western Canada. A few years later, Sojitz entered the railcar leasing business in Texas with its acquisition of Southwest Rail Industries Inc. Industries in 2021. This BWS acquisition expands Sojitz’s footprint in the southern U.S. as it strengthens its overall presence in North America, one of the world’s largest freight rail markets. Not only is the rail industry essential in providing logistics infrastructure that supports the economy and society, rail also produces roughly one-tenth the carbon footprint of trucks, contributing to reduced carbon emissions and the efficient transport of goods. Texas rail network map: https://lnkd.in/eacVxkcB

Sojitz recently entered the burgeoning U.S. market for takeout sushi with its acquisition of Eagan, Minnesota based Sushi Avenue. While high-end sushi restaurants have been around since the 1980’s, sushi has recently become much more widespread and available in casual dining settings such as cafeterias and at “ready to go” kiosks. Sushi Avenue sells takeout sushi that’s been freshly prepared in-store at supermarkets in over 20 states. Many of the company’s 300 locations are scattered around the Midwest, giving the company a strong foothold from which to diversify geographically. https://lnkd.in/eJGdzcgm The sushi market in the U.S. is now 1.6 times the size of Japan’s sushi market, with long-time favorites like California rolls a staple of American cuisine and nigiri sushi growing in popularity. Using well-established ties in Japan, Sojitz is strengthening its sourcing capabilities while expanding overseas. Marine Foods America (MFA) was established this past year to provide a foothold in the US market for Sojitz’s Marine Foods business. MFA ?supplies a wide variety of sushi ingredients that extends beyond staples like tuna and salmon. Marine Foods’ supply chain prowess and Sushi Avenue’s extensive market reach make for a deliciously fresh combination! https://lnkd.in/ed_yCMwk