TOPICS

2011 New Year’s speech by Mr M. Tanaka President of Tokyo Boeki Steel & Materials Ltd.

Dear Colleagues,
Happy New year to you all.
I would like to wish you all the best as we begin another journey of challenges in the year ahead.

The global economic crisis relentlessly continues to linger and no optimism is warranted on the economic recovery. A Number of Japanese corporations are facing fierce competition for survival in the global market. Under today’s ongoing changes in the economic situation, we, Tokyo Boeki Steel & Materials, will make every possible effort to expand our business operations and conquer these difficult economic times by promoting globalization and creating unique value in our services.

Tokyo Boeki Steel & Materials will continue to pursue overseas investment operations and implement an overseas personnel strategy as two basic strategies in the Business Development Program, “Challenge 2014”, to achieve JPY100 billion annual turnover and JPY2.2 billion ordinary profit in 2014. In the business investment area, we will further invest in and develop the existing eight joint venture businesses in China. I am pleased to announce that our Shanxi Jindi Coal complex (production capacity of 300 million tons) and Nanyao Coal Mine (production capacity of 1.2 million tons) will be complete and begin their operations this year. The Coal washery plant has already begun its operation, while the coke plant, power plant and the other facilities are scheduled to follow. Procedures to establish a coal marketing company are favorably in progress. Moreover, in the near future, a new joint venture company will be launched in Vietnam to produce Manganese metal and concrete blocks.

Summary of Investment Planning
– Steel service centre for local infrastructure industries in developing countries in Asia
– Manganese metal joint venture in Vietnam
– Investment in steaming coal mine in Indonesia
– Manufacturing and sales business of concrete blocks in Vietnam
– Facility expansion of Jinan Ludong Refractory Co. Ltd in China

To reinforce our global network in Asia, we established a representative office in Jakarta, Indonesia last year in addition to our 4 global locations (Japan, China, Australia and Vietnam). In addition, a representative is going to be stationed in Jinan, China early this year. As seen above, we will continue to explore opportunities to enhance our operations in Asia.

Very best wishes to you and your family for health, happiness and prosperity throughout the New Year.