Business content of Mitsui Matsushima Holdings Co., Ltd. <1518>
(8) Japan Katan
Japan Katan, which acquired shares in May 2022, handles overhead line fittings for power transmission lines that connect iron towers and transmission lines.
There are only two companies in Japan that can manufacture all components of overhead line fittings, and Japan Katan is a specialized manufacturer that boasts the top share of domestic high-voltage transmission line fittings market. It has the technical capability to comply with the product standards of power companies, and it is expected that high market share will continue in the future, as it takes a considerable amount of time for other companies to build a strong customer base. In addition, the government is considering the formulation of a next-generation power transmission network construction plan to promote the spread of renewable energy. Therefore, there is an expectation that demand for construction of power transmission equipment will increase.
(9) Plus One Techno
Plus One Techno, which acquired shares in August 2023, joined the group as a business succession case for the first local company in Kyushu. It is based in Kitakyushu City, Fukuoka Prefecture, and mainly manufactures measuring equipment, as well as peripheral devices and other products. It holds the top share in the niche market of lightweight areas in the comma range, where major manufacturers of measuring equipment do not enter. It is used for the measurement and packaging of pet food, preserved food, instant miso soup ingredients, etc., and has a track record of delivery to major domestic companies such as Nissin Foods Holdings Co., Ltd. <2897>, Ajinomoto Co., Inc. <2802>, Calbee, Inc. <2229>, and Eiichi Hanazono Holdings, Inc. <2899>, as well as overseas companies. It aims to expand its performance while utilizing the management know-how possessed by the group.
(10) Japan Chain Holdings Co., Ltd.
Japan Chain Holdings Co., Ltd., which acquired shares in December 2023, possesses three companies: Sugiyama Chien Co., Ltd., Zexus Chain Co., Ltd., and MAXCO Chain, Ltd. (hereinafter referred to as the “JCH Group” in total), and engages in manufacturing and selling industrial roller chains and conveyor chains. The JCH Group has earned high trust from customers in a wide variety of industries at home and abroad for over 110 years since its foundation, and has high share in the world for roller chains for power transmission machinery, as well as for large conveyor chains for water treatment facilities, etc. It has the following strengths: (1) offering a wide variety of Japanese-made chains with excellent durability, such as fatigue strength and breaking strength, that are highly evaluated at home and abroad, (2) having a high level of customization capability to respond to various needs by building trust relationships with customers for a long time, and (3) having a strong sales network in the world's largest industrial chain market, the United States, which is expected to continue to grow in the future. It is planned to expand production activities further by utilizing the management know-how possessed by the group, and to achieve an increase in both the top line and profit. In addition, looking at the regional sales structure of Japan Chain Holdings Co., Ltd., it has a considerable amount of sales from the United States. Through this acquisition, the company has incorporated the strong economic growth of the United States into its consolidated performance.
2. Energy Business
This business consists of the coal production and sales segment, which corresponds to the main coal-related business, and the renewable energy segment, which started in 2012. The sales composition ratios (as of March 2024) for each segment are 98.8% for coal production, 0.4% for coal sales, and 0.9% for renewable energy, with coal production accounting for the majority.
(1) Coal Production Segment
MITSUI MATSUSHIMA AUSTRALIA PTY. LTD. has been operating the Liddell coal mine in New South Wales, Australia as a joint venture with Glencore and has obtained coal mine rights commensurate with its ownership ratio (32.5%). It produces high-quality general coal (about 84% of the total) and raw coal, mainly for export to Japan.
Regarding the Liddell coal mine in Australia, the mining area that has obtained permission from the state government became the final mining area in the March 2024 period. As a result, coal production ended in the March 2024 period.
(2) Coal Sales Division
This is a newly split area following the transition to a pure holding company in October 2018. Mitsui Matsushima Industries Co., Ltd. has been selling coal to electrical and iron and steel companies in Japan. The impact of profit due to changes in coal prices is limited as it earns commission (brokerage fee) according to the amount handled. Note that the same business also ended in the March 2024 period due to the end of the Liddell coal mine in Australia.
(3) Renewable Energy Division
MM Energy Co., Ltd. operates a 6MW photovoltaic power station called "Megasolar Tsuyazaki Power Station" using its own land in Fukutsu City, Fukuoka Prefecture. The annual power generation capacity is equivalent to the annual power consumption of about 2,000 households.
(Written by FISCO Guest Analyst Yoichiro Shimizu)