Japan’s Marubeni returns to Sri Lanka, FDI boost expected

Friday, 20 January 2012 00:54 - - {{hitsCtrl.values.hits}}

In a major boost to Sri Lanka’s international investment profile and its FDI inflows, Japan’s top multinational conglomerate Marubeni Corporation is returning to Sri Lanka.

“Marubeni wants to re-commence operations in Sri Lanka in the due course. The discussions with their fact-finding mission were very successful,” Industry and Commerce Minister Rishad Bathiudeen said yesterday.

Industry and Commerce Minister Rishad Bathiudeen greets Marubeni India Chairman and Managing Director Shinya Watanabe as Marubeni Sri Lanka Mission team leader Wataru Yoshida, Marubeni’s Tokyo based Corporate Officer and Senior Operating Officer (right) looks on

Marubeni’s two day visit is led by Wataru Yoshida, Marubeni’s Tokyo based Corporate Officer and Senior Operating Officer. Also taking part in the mission with three other Marubeni members was Shinya Watanabe, Chairman and Managing Director of Marubeni India.

Marubeni, which was already active in Sri Lanka for 25 years, closed its operations on 1 May 2008, citing unfavourable economic conditions. Marubeni’s return is also expected to boost Sri Lanka’s FDI inflows further.

Marubeni reported $ 48 b revenue in 2010. Among Marubeni’s major stockholders is JP Morgan Chase Bank. The diversified multinational conglomerate is engaged in diversified trading activities. In that, it handles imports and exports of food materials, food products, textiles, materials, pulp and paper, chemicals, energy, metals and mineral resources, transportation machinery, offshore trading.

“We also are present in power projects and infrastructure, plants and industrial machinery, finance, logistics and information industry, and real estate development and construction,” said Yoshida, speaking to Bathiudeen.

“We are the largest independent power operator in Japan and energy trader in Japan. We have more than 40 operations across the world including Qatar and even Papua New Guinea. We have projected a net profit of $ 1.8 b for 2011 which we want to invest in selected countries, including Sri Lanka. Now, we want to recommence operations in Sri Lanka. In fact, we want to open our Colombo office as soon as possible,” Yoshida informed Bathiudeen.

“We warmly welcome you back. The Government will give any and all assistance you need to recommence your operations here,” Bathiudeen responded.

Watanabe revealed: “Marubeni India is keen on power projects in Sri Lanka. Marubeni India is now in a position to supply with LNG Gas (Domestic gas) to Sri Lanka if necessary, using our LNG terminals across the Eastern Indian shore. We import around five million tonnes of LNG to India.”

Watanabe added: “We are also strong in the Combine Cycle Power Plants (CCPP) sector which we think that Sri Lanka can make good use of. We already have ongoing CCPP projects in Thailand and Indonesia in association with Siemens, among the many project countries.”

CCPPs use both gas and steam turbines to supply power to the grid and is considered to be an efficient generation mechanism since it uses waste heat to produce steam which in turn generates additional electricity through the steam turbine.

“A number of investment sectors that Marubeni is involved across the world are priority sectors of President Mahinda Rajapaksa’s development vision as well, and therefore we believe that you should be readily accommodated into Sri Lanka’s new phase,” Bathiudeen informed the Marubeni team.