Sojitz To Build Wind Farm In NamibiaTOKYO (Nikkei)--Sojitz Corp. is helping to develop Namibia's first wind farm.
The Japanese trading house has partnered local concern United Africa Group (UAG) and a South Korean power company to build a wind farm that can generate 44,000 kilowatts. The facility, to be located in Luderitz in southwestern Namibia, will cost up to 12 billion yen to construct and is slated to come onstream in 2013.
Over the next year, the firms will conduct detailed wind studies. After a long-term electricity supply contract is inked with the African nation's state-owned power provider, Sojitz will take a stake in UAG's wholly owned wind farm development and operation subsidiary as early as 2012 and begin building the plant. Depending on demand, a second power plant could also be constructed in Luderitz.
Namibia currently obtains more than half its electricity from such neighbors as South Africa. For that reason, the Namibian government is expected to support power plant development to improve the country's self-reliance. By participating in the project, Sojitz aims to expand other local operations, including resource development.
Source:The Nikkei Jan. 13,2011
TOKYO (Nikkei)--Prime Minister Naoto Kan is calling his new cabinet, slated to be formed Friday, "the most powerful lineup for the upcoming Diet session."
But because major posts are to be held mostly by the same people, or by individuals moved up from key party positions, the shuffle gives the impression that Kan was forced to revamp his cabinet merely to replace Chief Cabinet Secretary Yoshito Sengoku and Land Minster Sumio Mabuchi, who the opposition-controlled upper house has censured.
Losing Sengoku, the backbone of the Kan administration, is likely to have a huge impact on the government, and the decisions to appoint Yukio Edano as his successor and select Kaoru Yosano as the next minister for economic and fiscal policy are already causing a stir within and outside the ruling camp.
Kan stressed he shuffled his cabinet "not because of the censure motions but to create a new system to promote reform."
Among the top agenda items he mentioned were tax and social safety net reforms and the promotion of the Trans-Pacific Partnership free-trade pact. Yosano, who supports fiscal reconstruction through a consumption tax hike, and Banri Kaieda, an advocate of the TPP, have been selected for the causes.
But it is apparent that the cabinet revamp was prompted to overcome the political impasse in the divided Diet, as the opposition camp demanded that both Sengoku and Mabuchi be replaced if the ruling parties wanted to resume smooth deliberations.
The fiscal 2011 budget bill can be passed in the lower house, which can override the upper house decision on it. But no budget-related or other legislation can be passed without cooperation from the opposition parties.
It may have been difficult, considering Diet deliberations on the fiscal 2011 budget bill, to change key cabinet members involved in the bill's drafting. But if the new cabinet lineup lacks a real sense of freshness, people will be forgiven for feeling that the government succumbed to pressure from the censure motions. The cabinet shuffle has already met with objections.
"The person filling the chief cabinet post should be selected from a wider range of candidates," said an Ozawa group member. Another Ozawa group member said he questioned the rationality of party leaders choosing Yosano, who opposed the supplementary budget bill last year.
Source:The Nikkei Jan. 14,2011
The lineup of the new Cabinet launched Friday by Prime Minister Naoto Kan reflects his administration's focus on implementing a consumption tax hike and studying the possibility of participating in the Trans-Pacific Partnership trade agreement, according to observers.
Kan has said the government would finalize its plans regarding a consumption tax hike by June, and Friday's appointment of Kaoru Yosano and Hirohisa Fujii suggests the prime minister's strong determination to realize an increase.
Yosano, a former chief cabinet secretary under the Liberal Democratic Party and staunch advocate of fiscal reconstruction, was appointed state minister in charge of economic and fiscal policy. Fujii, a veteran Democratic Party of Japan lawmaker and former finance minister, was appointed deputy chief cabinet secretary.
Meanwhile, Kan reassigned outgoing Economy, Trade and Industry Minister Akihiro Ohata--who was in charge of the TPP issue but expressed reservations about joining the trade agreement--to the position of transport minister. Banri Kaieda took over the job of trade minister to promote the nation's joining the TPP, another indication of Kan's enthusiasm to participate in the agreement.
Joining the TPP, which is being negotiated by nine countries, would theoretically help Japan's exports, but because it would in principle eliminate all tariffs, the agricultural sector fears an influx of cheap products from overseas. However, Kan is expected to face a long, arduous road to consolidating the various opinions inside and outside the DPJ, observers said.
On Friday morning, Yosano told reporters it was important for ruling and opposition parties to hold talks on key issues. Fiscal reconstruction and social security reform are not problems that can be resolved by a single party. Various problems now facing the public must be handled outside the whirlpool of political strife," Yosano said.
However, it remains uncertain when the ruling and oppositions blocs will be able to start talks, as the LDP and New Komeito are strongly demanding the government present its policies first. Many hurdles must be cleared before the consumption tax rate can be raised.
Kan has expressed his intention to review the DPJ's manifesto for the 2009 House of Representatives election. The party had initially said it could secure enough revenue through cutting wasteful spending to implement the pledges. Some DPJ members were critical of the decision. "More can be done to cut wasteful spending," a DPJ official said. "Review [of the manifesto] and discussion of a consumption tax hike should come after [thoroughly rooting out wasteful spending]."
Source:The Yomiuri Shimbun,Jan. 15, 2011
TOKYO (Nikkei)--The business community is hoping Prime Minister Naoto Kan's new cabinet will be more positive than its predecessor toward Japan's participation in the planned Trans-Pacific Partnership free trade pact.
One of the highlights of Friday's cabinet revamp is the appointment of Banri Kaieda, regarded as a TPP proponent, to minister of economy, trade and industry. Kan has said the government will make a final decision around June, and businesses are stepping up their calls for participation.
Shoei Utsuda, chairman of Japan Foreign Trade Council Inc., an association of trading houses, issued a statement Friday in which he urged the government to quickly express its intention to participate in the TPP. One reason for this is that trading companies are worried about the rise of South Korea as a corporate rival.
Trade disadvantage
The Japan External Trade Organization (JETRO) estimates that free trade agreements between South Korea and the three economies of the European Union, the U.S. and China would cause Japan's exports to drop 11.2 billion dollars in the first year.
"South Korea is striving for free trade pacts with major economies. If Japan lags behind, that would hurt the country's entire economy," said an executive at a Japanese trading house.
The automobile industry shares the same concern. Toshiyuki Shiga, chairman of the Japan Automobile Manufacturers Association (JAMA), said Friday he wants the government to continue working to stabilize the currency and to achieve a level playing field for Japanese firms so as to maintain and strengthen Japan's manufacturing sector.
The JAMA estimates that South Korean carmakers can enjoy lower tariffs in markets worth 41 million vehicles, or more than 60% of the global total, while the figure for Japanese players is only 8 million vehicles.
Steelmakers are also facing intensifying competition with South Korean and Chinese rivals. Eiji Hayashida, president of JFE Steel Corp., said, "South Korea is forming FTAs with one economy after another, which is making the competition tougher."
Sectors fear harder times
The Democratic Party of Japan-led government has so far been reluctant to take part in the TPP. Hitachi Ltd. President Hiroaki Nakanishi warns that this could have a big impact on manufacturers.
The Ministry of Economy, Trade and Industry estimates that if Japan chooses not to take part in the pact, Japanese companies would become less competitive, resulting in a decrease of 10.5 trillion yen in its gross domestic product in real terms in the automobile, electronics and machinery sectors. On the other hand, the Ministry of Agriculture argues that the TPP would increase imports of farm products, hurting farmers.
Cost of inaction
At a Friday press conference, Kan said the government will take measures to make Japan's farm sector more competitive. Masahiro Sakane, chairman of construction machinery manufacturer Komatsu Ltd. (6301), insists that agriculture is actually a growth sector, given that the world's food supply is projected to eventually fall short of demand. "If Japan does nothing (to improve) its farm sector, there will be serious trouble," he said.
Trading houses are expanding their involvement in the agriculture sector. Mitsui & Co. (8031), for example, has agreed to turn a Brazilian agricultural company into a subsidiary to obtain a stable source of grain supplies.
Sumitomo Corp. , for its part, took a 20% stake in a farming company in Kagoshima Prefecture -- indicating that the business sector can play a meaningful part in invigorating Japan's farm sector.
Source:The Nikkei Business Daily Jan. 17,2011
TOKYO (Nikkei)--The Japanese government, in cooperation with the private sector, will begin to stockpile enriched uranium for nuclear power generation purposes in fiscal 2011.
With global demand for nuclear power expected to rise in response to global warming, Japan aims to secure a stable supply of fuels to bolster its energy security and pitch the country's nuclear power generation technologies to emerging economies.
Although utilities currently hold reserves for their own nuclear power plants, the new initiative will mark the first time the government has stockpiled emergency supplies of nuclear fuel. It plans to accumulate 120 tons through fiscal 2015.
Japan consumes more than 1,600 tons of enriched uranium per year. Japan Nuclear Fuel Ltd. enriches about 4% of domestic demand, while utilities import the remainder from countries such as the U.S., Russia and France.
The government will use two to four storage facilities operated by uranium-processing companies and will cover costs to purchase uranium, as well as the interest on maintenance expenses.
Stockpiling costs are estimated to reach about 24 billion yen over five years, of which the government plans to finance around 400 million yen.
Source:The Nikkei Jan. 16,2011
TOKYO (Nikkei)--The volume of cargo at Tokyo's Haneda airport has been sharply increasing since the domestic hub opened for international passenger service at the end of October. According to Tokyo Customs, cargo volumes at Haneda reached 11,361 tons in November and 12,457 tons in December, helping the 2010 tally surge 240% on the year to 52,086 tons.
Until October, monthly cargo volumes were hovering at the 2,000- or 3,000-ton levels. But November and December figures spiked more than 300% from a year earlier. Most cargo handled at Haneda is transported aboard passenger planes because the airport does not offer scheduled cargo services. Cargo volumes are on the rise as Haneda has begun handling scheduled international passenger
flights, which link Tokyo with 13 cities worldwide. The airport now also offers some chartered cargo service as a part of this deregulation.
Source:The Nikkei Jan. 13,2011
There are some signs of revival at Japanese sewing plants. Thanks of the stable orders under the strategies like focusing on the luxury production; some plants raise its operation rates rapidly.
Among apparel manufacturers, there is a stream to switch the production bases from China to Japan.
KM Hosei Co.,Ltd.(Saitama), received 30-40% more order than last year. They operate the head factory every days including Sunday since last December and produce jackets and coats. In sewing industry, most companies do mass production under the divisional cooperation but in KM Hosei Co.,LTd. a craftman produce one garment by himself. Taking advantage the high quality products unlike mass produced products, they engage special stitches and various kinds of embroidery. They receive the luxury products order from Japanese apparel makers.
Fashion Shiraishi Co.,Ltd.(Suginami-ku, Tokyo) also received about 30% more order than 1-2 years ago. They engage all apparel procedure like designing, the procurement of raw materials, sewing and propose completed products to department stores and apparel retailers. For a bridal booth in the department store, they started to wholesale wedding dresses.
Sara Co.,Ltd.(Fukuoka) fully operates the main factory and the 5 cooperate factories. They succeeded the method to propose garment designs and materials planed by them to sale spaces..
President, Mr. Sakoda said that currently they became to be able to choose the job.
This recovery of Japanese sewing factory is attributed from the risen wage of factories and the low worker retention rate in China. In factories in coastal areas, many migrant workers from inland area were working. Due to the economic rapid development in inland area, many workers moved back to inland area and the labor forces in coastal areas is insufficient.
Other Japanese apparel makers move the production bases from China to another country and they are looking at the domestic stable factory to produce high end products. Due to the recovery of Japanese sewing factories, Japanese leading string company Fujix Co.,Ltd, increased the order in Japan. Now their main factory in Shiga is fully operated and Fujix Co.,Ltd. supplies the machine string to all over the Japan.
Source:The Nikkei Jan. 12,2011
The Office of Commercial Affairs, Royal Thai Embassy in Tokyo, Japan
Source : http://www.depthai.go.th