Reading Global(2022.01.26)
Japanese construction companies were overtaken by Chinese companies and sought change
Japan Economic News reported on the 26th that in the global construction market, Japan's sense of presence is low. In the list of total sales and overseas sales of the world construction industry in 2020 published by the American magazine "Engineering News Record" (ENR), the top 5 construction companies in Japan only ranked 20-30 in the total sales list.
These Japanese companies, which ranked 2nd to 6th in the world in 1990, were overtaken by European and Chinese companies after the collapse of Japan's bubble economy. Now Chinese companies occupy 8 seats in the top 10.
In order to diversify its operations in areas other than the construction industry, the Obayashi Group, a Japanese construction company with a high proportion of overseas sales, has also taken into account the development of renewable energy business overseas in addition to real estate development. The Obayashi group launched the business of producing hydrogen through geothermal power generation in New Zealand, and began construction of a hydrogen refueling station in the port of Auckland in 2021.
The trend of moving away from engineering contractor status is also expanding among quasi-large companies centered on Japan's domestic market. Land transformation, commercial facility construction, and facility operation income are all within the scope of consideration.
Since 2016, Maeda Construction has strengthened its infrastructure operation business (obtaining "concessions" for public facilities, etc. from national or local governments) and promoted the transformation into an infrastructure integrated service company.
In October 2021, Maeda Construction Industries merged with its highway subsidiary Maeda Road to form a joint shareholding company, INFRONEER Holdings.
Maeda Construction has achieved significant operational performance in the fields of expressways, exhibition venues, and water supply, and its single-division profit in fiscal 2020 (ending March 2021) reached 3.2 billion yen, an increase of about 7% of the consolidated operating profit. Based on the medium-term management plan formulated by INFRONEER Holdings, it plans to increase profits in this area to 11.5 billion yen by fiscal year 2023 (ending in March 2024).
Another Japanese construction company, Toda Construction, participated in the "Agriscience Valley", a regional construction business centered on agriculture, which was promoted by Tsunaga City in Ibaraki Prefecture since 2017.
The trend of Japan's largest construction companies to enter other industries is expanding. On the other hand, there are also large companies proposing an active merger and acquisition (M&A) route.
The court dismissed the EU's $1.2 billion antitrust fine against Intel
Reuters reported that Intel won an appeal against the 1.06 billion euros ($1.2 billion) antitrust fine imposed by the European Union 12 years ago for suppressing competitors.
The European Commission imposed penalties on Intel in 2009 for trying to crowd out rival Advanced Micro Devices by offering kickbacks to PC makers Dell, HP, NEC and Lenovo.
Europe's second highest court, the General Court, criticized the ANALYSIS from the EU competition enforcement agency and scrapped the fine.
"The European Commission's analysis of the case is incomplete and therefore it is not possible to determine, under the necessary legal standards, whether the disputed issue of kickbacks would create unfair competition," the judges said. ”
The European Commission said it would study the judgment and think about possible next steps.
In 2014, the General Court of Justice of the European Union expressed support for the European Commission's ruling in 2009, but was subsequently told in 2017 by the European supreme court, the EU Court of Justice, that Intel's appeal should be re-examined.
Typically, regulators focus on rebates, especially dominant companies, because they fear they could cause anti-competitiveness. However, regulators must prove that rebates have anti-competitive effects in order to impose sanctions.
Bentley will produce its first pure electric vehicle in 2025
The Guardian reported on the 26th that luxury car manufacturer Bentley announced that its first all-electric vehicle will be developed and manufactured in the Uk klu plant in 2025.
Bentley began producing cars in 1919 and is now owned by Volkswagen AG of Germany. Bentley has committed to investing £2.5 billion in sustainability over the next 10 years. This will include a "complete overhaul" of all Bentley cars and its Crewe plant.
Workers who make the brand's internal combustion engines will be retrained and redeployed to work in different parts of the plant.
Bentley announced at the end of 2020 that it would stop producing fossil-fueled cars by 2030, with the aim of making its business fully carbon neutral by the same date. From 2030, the UK will ban the sale of new petrol and diesel cars.
Bentley's shift from manufacturing traditional internal combustion engine cars will first build hybrids and then launch its first pure electric vehicle to achieve zero carbon emissions. The company has not disclosed any details of its first all-electric vehicle.
Earlier this month, Bentley said global sales were up 31 percent due to strong demand for high-end cars, and the company had already hit a record high in 2021.
Yahoo parent company Z Holdings launched a courier service with the fastest 15-minute delivery
Kyodo News Agency reported that Yahoo parent company Z Holdings announced on the 26th that it has officially launched a courier service with the group company "ASKUL" and Izumaekan, and users can deliver food or daily necessities as soon as 15 minutes after placing orders online. We have conducted verification trials at eight stores in Tokyo, and we plan to expand our scope to cover all 23 wards of Tokyo and other major cities in FY2022.
Under the COVID-19 pandemic, home-based consumption is very active, and people's attention to easy-to-use instant delivery services has increased. Amazon Japan and home appliance giants are also committed to this field, and competition may become fierce.
Z Holdings began on the 26th with the theme of "Yahoo! The service was launched under the name Mart, and about 1,500 kinds of goods can be delivered, mainly food and daily necessities. After the user places an order in the ex-shop APP, the nearest store operated by Isoker will provide the goods.
This service can be used for orders of 800 yen or more, and the courier fee is 420 yen. If the order amount is 1,500 yen or more, the courier fee is 310 yen.
In terms of instant express delivery, Amazon Japan, together with LIFE CORPORATION and Valor Holdings, which operate supermarkets, provides Amazon fee-based members with a minimum of 2 hours of fresh food and side food delivery services in the Tokyo metropolitan area and parts of Kansai and Aichi Prefecture. Yamada Electric also provides home appliance delivery within 90 minutes in Miyagi And Fukushima Prefecture, Tokyo Prefecture, and parts of Aichi Prefecture.
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Image source: Visual China
Colombia will export more than 650 million flowers to the United States
On January 25, 2022, local time, in El Rosal, Colombia, a local flower company rushed to package roses and prepare to ship more than 650 million flowers to the United States before Valentine's Day. Valentine's Day is the biggest flower sales of the year.
(This article is compiled from Nihon Keizai Shimbun, Reuters, The Guardian, Kyodo News Agency)
Economic Observation Network intern reporter Zhou Yuqing sorted out