Shinsho Corp Targets 1.35 Trillion Yen Sales and 13 Billion Yen Profit in F2020

Shinsho Corporation, Kobe Steel Group’s trading house, announced on Monday the firm targets consolidated net sales at 1.35 trillion yen with recurring profit at above 13 billion yen along its new long-term management vision till fiscal 2020 ending in March 2021. The firm plans 40 billion yen capital expenditure for fiscal 2010-2015 to acquire equities in iron ore or coal mines and construct a plate cutting center in India. The firm tries to raise the overseas sales ratio to 50% from present 30%.

Mr. Tsuguto Moriwaki, president of Shinsho Corp said the firm eyes long-term growth in next 10 years when offshore market is expected to represent strong growth. Shinsho Corp cultivates growing business fields such as mineral resources, energy, environment and information technology by long-span investment.

The firm plans to invest 23 billion yen to acquire shares in iron ore, coal and ferroalloy mines in Australia and Brazil in cooperation with Kobe Steel. Shinsho Corp will also participate in Kobe Steel’s direct reduced iron plant business and build up warehouses of nonferrous metal scrap in overseas.

Shinsho Corp will invest 5 billion yen in the steel division, including establishment of a plate cutting center for construction machines in India within 2010. The firm also plans to open a sales base of automotive components in India in 2010-2011. In China, the firm plans to invest in coil centers and expand the sales of high tensile steel sheet and electro galvanized steel sheet. The firm will utilize steel wire processing plants in China, USA and Thailand.

Shinsho Corp aims to expand trade sales in China to 215 billion yen in fiscal 2020 from 38 billion yen in fiscal 2009. The firm sets the sales targets at 230 billion yen for other countries in Asia, 50 billion yen in India and 30 billion yen in Middle East for fiscal 2020. The firm plans to increase offshore staff number by 120 until fiscal 2015.