Forest Products, General Merchandise & Logistics Division

Building Global Value Chains with “the Home and Living” as Keywords

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Out of the three product categories handled by ITOCHU: apparel, food, and the home, “home” is the primary focus of the Forest Products, General Merchandise & Logistics Division. This Division contributes to affluent lifestyles through diverse value creation in the consumer-related sector focusing on the home and living.

In the pulp and paper area, we are advancing a strategy to become the world’s No. 1 pulp trader based on pulp sales networks that we have built in Asia, Europe, and North America. In particular, Celulose Nipo-Brasileira S.A. of Brazil has established competitive superiority in the global market as a pulp production base thanks to high volumes of eucalyptus virgin wood growth and rigorous efforts to increase efficiency. Moreover, ITOCHU acquired 24.9% of the shares outstanding in METSA FIBRE OY, one of the world’s largest softwood pulp producers in 2012.(ITOCHU’s stake is now 25.0%.) As a result, ITOCHU will confirm its leading global position in pulp trading, expanding its sales network and further strengthening its paper pulp business.

In the rubber and tire area, we have built a robust value chain that extends from one of the largest natural rubber processing businesses in Southeast Asia through to tire wholesale and retail businesses in Europe, the United States. In particular, having acquired the Kwik-Fit Group as the leading tire retailer in the United Kingdom, a strategic country, we are further strengthening our sales network.

Logistics Solutions (3PL, Logistics Center Management & Operation, International Multimodal Logistics, Automotive Logistics) and Maritime Shipping Services & Supply Chain Networks

With changes in distribution channels resulting from the emergence of e-commerce giants and changes in the logistics environment such as shortages of truck drivers and trucks, industry demand for new forms of supply chains is growing. Drawing on our strengths as a general trading company, we have moved beyond providing standalone services such as “storage” and “transportation” and begun creating new networks for supply chains that will solve the challenges faced by the industry as a whole, including the creation of collaborative logistics networks.

As an operational company, ITOCHU LOGISTICS CORP. provides customers in a wide range of fields in Japan and overseas with high quality one-stop logistics services utilizing its logistics functions for land, sea and air, its wide domestic and international networks, its rich experience-based knowledge of on-site logistics operations, and added value including the distribution channel function.
In China, ITOCHU is proud to operate the largest-scale 3PL business among Japanese corporations. ITOCHU LOGISTICS (CHINA) CO., LTD. and Dateng Logistics (Shanghai) Co., Ltd. ensure the success of carefully managed logistics operations based on a network covering the whole of China, mainly in the cosmetics/apparel/sundries retail/e-commerce field and the automobile field.
In ASEAN/West Asia, 3PL companies were established, including PT. ILC LOGISTICS INDONESIA (in Indonesia in 2012) and IP Integrated Services Private Limited (in India in 2011). Logistics services have been enhanced in emerging markets.

Maritime Shipping Services

We charter ships and provide transportation services for tramper cargo such as iron ore, coal, grain, cement, power generation fuel and chemicals, automotive cargo such as finished vehicles and machinery, and other scheduled cargo such as CKD parts and service parts.
Japanese shipping companies have, of course, developed friendly partnerships with shipping companies overseas and we utilize our maritime service knowhow and contacts and networks around the world to provide maritime services including chartering vessels for iron ore on behalf of major steel manufacturers in China.
We have also established a collaborative logistics system with ITOCHU Logistics Corporation, putting in in place a system that meets the diverse maritime transport needs of our customers.