- Overview of Operations
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- At a Glance
- Metal Products Business Unit
- Transportation & Construction Systems Business Unit
- Environment & Infrastructure Business Unit
- Media, Network, Lifestyle Related Goods & Services Business Unit
- Mineral Resources, Energy, Chemical & Electronics Business Unit
- Messages from Regional Organizations
Main Business
- Environment & Infrastructure Project Field
- Global Power Infrastructure Field
- Logistics and Insurance Field
Organization
- Planning & Administration Dept., Environment & Infrastructure Business Unit
- Environment & Infrastructure Project Business Division
- Global Power Infrastructure Business Division
- Logistics & Insurance Business Division
Environment & Infrastructure Business Unit
Message from the General Manager
→ Aiming to expand the earnings base by tapping growing demand for social infrastructure and logistics
A[Summary of Fiscal 2013] Profit for the year totaled ¥19.1 billion in fiscal 2013, up ¥5.1 billion year on year. This mainly reflected a solid performance by the power infrastructure business, such as the Tanjung Jati B Coal-Fired Power Plant (TJB) in Indonesia, and profit contributions from value realization projects.
We are developing a number of projects to expand our earnings base. These include participation in an IWPP project in Kuwait, an offshore wind power project in Belgium and an industrial park project in Myanmar. We are constructing a gas-fired thermal power plant in the U.A.E. and a wind farm in South Africa. We have also sold part of our stake in a U.K. water supply company to a strategic partner and replaced our domestic wind farm asset. In this way we are making steady progress with the initiatives outlined in the BBBO2014.
Northwind Offshore Wind Farm (Belgium)
[Initiatives for FY2014] In the overseas power infrastructure business, we are developing new projects and also pushing ahead with existing projects, such as the IWPP project in Kuwait, large-scale power plant EPC projects in Thailand and Malaysia, wind farm construction projects in South Africa and the U.S., and the offshore wind power project in Belgium. In the domestic power field, we have started building our new power plant that uses biomass fuel. We are also developing new overseas industrial parks and working on new water projects.
→ Making steady progress with existing projects and developing new projects
Large-scale power storage system utilizing used EV batteries
AWe have been working with eight other private-sector companies and Osaka City on the Osaka Hikari-no-Mori Project, a mega-solar power generation project that makes effective use of a landfill site on Yumeshima in Konohana Ward, Osaka. The project started generating electricity in November 2013.
In February 2014, at a neighboring site on the island, we also began operating a large-scale power storage system, which utilizes used batteries collected from electric vehicles (EVs). We will make use of the system to verify and measure the smoothing effect on energy output fluctuations from mega-solar farms, which are affected by the weather. By utilizing used EV batteries, which are likely to be available in greater numbers in the future, we aim to develop highly economical large-scale power storage systems. The used EV batteries installed in this project were supplied by 4R Energy Corporation, a joint venture between Sumitomo Corporation and Nissan Motor Co., Ltd.
Performance Highlights
| (Billions of yen) | FY2012 | FY2013 | FY2014
forecast |
|---|---|---|---|
| Gross profit | 60.3 | 63.7 | 66.0 |
| Operating profit | 13.6 | 19.2 | - |
| Share of profit of investments accounted for using the equity method | 4.2 | 5.2 | - |
| Profit for the year (attributable to owners of the parent) | 14.0 | 19.1 | 21.0 |
| Total assets | 605.1 | 597.0 | - |
Business Field Overview
Environment & Infrastructure Project Field
What We Aim to Be 
We will help create a sustainable society and sustainable industries by implementing highly efficient infrastructure projects with low environmental impact.
[Business Environment]
In the renewable energy power field, some advanced countries scaled back incentive schemes, but we expect the global trend promoting the introduction of renewable energy to continue. Japan is moving toward greater deregulation in the domestic electricity retail market.
Demand for clean water is likely to increase, mainly in emerging countries, spurred by rapid industrialization and urbanization.
[Strengths and Strategies]
We will develop new projects to expand our earnings base by leveraging our track record in renewable energy power projects in the U.S. and South Africa, and our expertise in the water infrastructure field from our water supply business in the U.K.
In Japan, we plan to take advantage of further deregulation in the energy market to expand our electricity retail business, using Summit Energy Corporation's wealth of experience in power operations and its diverse portfolio of energy sources.
[Actions for What We Aim to Be]
Dorper Wind Farm (South Africa)
In Japan, the U.S. and South Africa, we are pushing ahead with the construction of wind and solar farms, and in Belgium we are developing an offshore wind power project. In Japan, we are building a biomass power plant to add to our portfolio of energy sources. In the water infrastructure business, we are constructing a desalination plant in Oman.
Global Power Infrastructure Field
What We Aim to Be
We aim to make a stable, long-term contribution to the development of society and the Group's earnings by expanding our power infrastructure business in line with market needs.
[Business Environment]
We anticipate further growth in electricity demand worldwide on the back of economic expansion and population growth in emerging regions such as Southeast Asia, the Middle East and Sub-Saharan Africa.
[Strengths and Strategies]
Our strength is the ability to propose and establish the type of projects that no one but Sumitomo Corporation can deliver by using our regional and business networks to meet market needs accurately and rapidly, and combining them with our long experience in EPC and I(W)PP businesses. We aim to build up a high-quality earnings base in regional markets that we know well, such as Asia, the Middle East and the Americas, and expand our presence in emerging markets, which offer significant potential.
[Actions for What We Aim to Be]
Image of completed Kinyerezi gas-fired combinedcycle thermal power plant (Tanzania)
The Shuweihat S3 gas-fired thermal power plant, currently under construction in the U.A.E., is scheduled to start commercial operations in August 2014. Also, we are constructing the Az-Zour North IWPP project in Kuwait. The project is the country's first public private partnership (PPP) in the sector and is scheduled to come on stream in 2016. In the power infrastructure EPC field, we are working on major projects in Malaysia and Thailand and developing a number of new large-scale projects in Southeast Asia and Sub-Saharan Africa.
Logistics and Insurance Field
What We Aim to Be
We aim to contribute to Group profit by enhancing our logistics and insurance functions, and to expand our business base in the overseas industrial park business.
[Business Environment]
We have to upgrade logistics and insurance functions to keep pace with the Group's expanding and increasingly complex business operations. Also, demand for high-quality logistics services and industrial parks is growing as Japanese manufacturers move into overseas markets, particularly Southeast Asia.
[Strengths and Strategies]
As an integrated trading company, we have many years of experience in the transport of various products and materials worldwide and are well-versed in insurance risk management for large-scale projects. Using this know-how, we will play our part in expanding the Group's business base by supporting the startup and expansion of businesses, while also generating earnings for the business unit itself. In the overseas industrial park business, we already have a strong presence in the sector and provide clients with high value-added services.
[Actions for What We Aim to Be]
Groundbreaking ceremony for the Thilawa
Industrial Park (Myanmar)
In Japan and overseas, we have built and managed a high-quality logistics system, and also provide support to new large-scale overseas projects in all areas of procurement and management.
In the overseas industrial park business, we plan to expand existing sites in the Philippines and Vietnam. We are also leading the development of the Thilawa Industrial Park in Myanmar.
Project Overview
Our overseas power infrastructure business has become more sophisticated, shifting its focus from exports of power cables and substation equipment in the 1970s to EPC and IPP businesses today. As the business has evolved, it has accumulated a wealth of expertise and know-how in power plant design and construction and in the development and operation of power generation businesses. Leveraging these skills, we are now addressing power infrastructure needs in Asia and in areas as diverse as the Middle East, North America and Australia.
In the Middle East, a large number of IPP and IWPP projects are being planned amid growing demand due to rising living standards accompanying industrialization. In this region, which we position as one of our strategic markets, a dedicated team was established in Abu Dhabi, U.A.E. to develop new projects and manage and operate our working power generation assets.
In January 2014, we started construction on the Az-Zour North project in Kuwait. The project is the country's first public private partnership (PPP) IWPP project and will contribute to stable, long-term power and water supplies for Kuwait based on a 40-year energy conversion and water purchase agreement with the Ministry of Electricity and Water. In the U.A.E., we are currently building the Shuweihat S3 gas-fired combined-cycle thermal power plant, which will have high fuel efficiency and low environmental impact. The plant is scheduled for completion in 2014.
In the overseas power infrastructure business, we are aiming to establish an earnings base capable of generating stable, long-term profits. Specifically, we plan to boost our net generation capacity from 5,478 MW at the end of March 2014 to 10,000 MW in 2019 by increasing our portfolio of prime assets, mainly in strategic markets.
Image of completed Az-Zour North IWPP project (Courtesy of Hyundai Heavy Industries Co., Ltd. and Societe Internationale de Dessalement S.A.)
Overview of the Az-Zour North IWPP Project
| Type of plant: | Gas-fired combined-cycle power plant and desalination plant |
| Capacity: | 1,500 MW |
| (Water production) | (Approx. 480,000 tons/day) |
| Total project cost: | Approx. $1.8 billion |
Overview of the Shuweihat S3 IPP Project
| Type of plant: | Gas-fired combined-cycle power plant |
| Capacity: | Approx. 1,600 MW |
| Total project cost: | Approx. $1.5 billion |