NEC Corporation (TSE: 6701) and Sumitomo Corporation (Sumitomo) have signed a strategic partnership agreement to expand global sales of NEC’s agricultural ICT platform CropScope. Based on this partnership, NEC and Sumitomo aim to develop markets mainly in South America and the ASEAN region by utilizing Sumitomo’s global network. To this end, NEC will expand the range of crops from the tomato farming support it has been focusing on and add functions to optimize and streamline a series of processes from cultivation to harvesting and processing. Through this partnership, CropScope is initially being introduced on a trial basis to major sugar companies in Thailand and Brazil.
Background
Since population growth and economic development are projected to increase global food demand, there are concerns that ongoing climate change will cause a serious impact on crop production. In addition, recent pandemics and unstable global situations have caused a sharp rise in prices of agricultural materials and stagnation of exports, threatening the stable supply of food. Increasing agricultural productivity is essential for ensuring food security on a global scale, and countries where agriculture is a key industry face the challenges of upgrading production technology and increasing the efficiency of farm management.
Summary of the Partnership
1. Expand sales of CropScope to emerging countries
Sumitomo has a network of regional organizations in 65 countries around the world and is engaged in sales and distribution of agricultural materials such as agrochemicals and fertilizers in about 40 countries. Through this partnership, Sumitomo will utilize its global network to expand CropScope’s sales area to Thailand, Brazil, and India, aiming for business growth.
2. Expanding the range of focus crops and integrating management from cultivation to processing
CropScope has been expanded to support sugarcane, wheat, soybeans, and corn, as focus crops in addition to processed tomatoes. AI functions will be applied for these new crops, learning from past farming and harvesting data to recommend the optimal time and amount of harvest, and a harvest planning function will be added to manage harvest planning and results. Combining this function with the existing optimization of fertilizer application and irrigation will enable comprehensive management from cultivation to harvesting and processing.
Future developments
NEC has been continuously enhancing the functionality of CropScope and collaborating with various partners to meet the diverse needs of customers involved in agricultural production. This partnership with Sumitomo, which has a broad global network and extensive knowledge in the agricultural and food fields, will be a significant milestone in the expansion of CropScope’s global sales.Sumitomo has been focusing on developing new businesses that contribute to sustainable food production with high efficiency and low environmental impact by utilizing advanced technologies, in addition to expanding its existing business base in the agriculture and food fields. One of the most important themes is smart farming, which contributes to the realization of safe and highly efficient food production by utilizing such technologies as automation of agricultural operations and data analysis. This collaboration with NEC, which has established AI technologies in agriculture and other fields, will be an important initiative.NEC and Sumitomo will continue to expand the range of focus crops and functions of CropScope while responding to issues and needs of agricultural production and processing sites. This will be performed as part of the companies’ support for environmentally friendly and profitable farming globally, and to contribute to sustainable agriculture and global food security.
NEC Smart Farming Management CropScope www.nec.com/en/global/solutions/agri/index.html
About NEC CorporationNEC Corporation has established itself as a leader in the integration of IT and network technologies while promoting the brand statement of “Orchestrating a brighter world.” NEC enables businesses and communities to adapt to rapid changes taking place in both society and the market as it provides for the social values of safety, security, fairness and efficiency to promote a more sustainable world where everyone has the chance to reach their full potential. For more information, visit NEC at https://www.nec.com.
About Sumitomo CorporationSumitomo Corporation is a leading Fortune 500 global trading and business investment company with 128 locations in 65 countries and regions. The entire Sumitomo Corporation’s group consists of around 900 companies. Sumitomo Corporation conducts commodity transactions in all industries utilizing worldwide networks, provides customers with financing, serves as an organizer and a coordinator for various projects, and invests in companies to promote greater growth potential. Our corporate message, “Enriching lives and the world”, was created to encapsulate our vision for sustainability in the next 100 years. Our mission is to grow sustainably alongside society, pursue development for the world, and enable better lives for all.
On February 6, 2024, Mitsubishi Corporation (MC), KDDI CORPORATION(KDDI), Lawson, Inc.(Lawson), announced that the companies signed a capital business partnership agreement to aim for creation of new consumer values by integrating “Real, Digital, and Green” elements.
MC and KDDI agreed on the deal related to Lawson delisting after public tender offer, and KDDI is planning to conduct a public tender offer for shares of Lawson. After the deal is completed, MC and KDDI will own 50% of Lawson shares each, and the companies will commit to enhance corporate value of Lawson as business partners.
1.Vision
In the convenience store business of Lawson, MC and KDDI aim to realize the “Hub of refreshment in every community” which integrates “Real, Digital, and Green” to create new consumer values.
Through this partnership, MC, KDDI and Lawson aim to provide sustainable services addressing various societal challenges including “Green” (reduction of environmental footprints) by combining the functionalities and services of KDDI and Lawson with one of the Japan’s largest consumer touchpoints including Lawson’s real customers of over 10 million per day at approximately 14,600 stores with the digital customers of over 31 million from KDDI.
2.Considerations in this Partnership
(1) Real
Lawson and KDDI will merge their real touchpoints (Lawson stores: approximately 14,600, au Style/au shop stores: approximately 2,200) to establish large real-store networks in Japan. This will enable Lawson to expand its store network and enhance its functionalities, aiming for further improvement in customer convenience.
Example
– Handling Lawson Products/Services(PB, Loppi, Lawson Bank ATM etc.) in au Style/au Shop. – Handling KDDI products/services in Lawson stores (telecommunication-related products, Bank/Insurance services, Healthcare services, Entertainment services, Mobility services, etc.). – Providing services supporting everyday lives of Lawson customers by installing online remote customer service.
(2) Digital
KDDI’s customer attribute data and location data, along with Lawson’s customer purchase data, will be integrated leading to establishment of one of the largest customer data platforms in Japan, utilized for data analysis.
Example
– Developing services for KDDI and Lawson customers to provide good shopping deals, expanding customer visits to Lawson stores. – Optimizing Lawson’s store operations through the provision of KDDI’s digital transformation insights and technology.
(3) Green
We aim to realize green and sustainable consumer society by contributing to Lawson’s Environmental Vision “Lawson Blue Challenge 2050!”(Note), as making the most of our business foundations.
Example
– Reducing CO2 emissions by installation of solar panels at Lawson Stores. – Circular economy businesses, such as manufacturing biodiesel from oil waste disposed at Lawson Stores. – Reducing plastic use by replacing plastic containers and PET bottle materials with biomass materials at Lawson stores.
(Note) “Lawson Blue Challenge 2050!” was formulated in 2019 as the Lawson’s environmental vision that focuses on three areas: (i) reduction of CО2 emissions, (ii) reduction of food waste, and (iii) reduction of plastic use (e.g. containers and shopping bags)
3. Background about this Partnership
(1) Overview of business environment
We anticipate the increasing significance of convenience stores as essential regional infrastructure based on the projection of accelerated population decline and aging demographics. Meanwhile, utilization of “digital technology” will be essential to supplement labor shortages due to declining working populations and regional disparities. Furthermore, with increase of societal demands for “green”, we anticipate that there will be more significant shifts in consumer consciousness for “green,” and changes in external environment.
Moreover, in the retail sector in recent years, companies are expanding businesses areas, developing cross-industry operations and services, constructing their respective economic zone. In such an environment, we believe it is crucial to provide convenience and profitability suited to customer preferences to continue being chosen by customers.
(2) Purpose of the Partnership
The convenience store industry has become an indispensable part of society as a stable supplier of food and daily necessities. After diversification of customer lifestyles, consumption behaviors, and values, triggered by COVID’ 19, Lawson has been addressing these changes by enhancing products and services such as in-store kitchens, frozen foods, and delivery services to adapt to the “new normal.”
Meanwhile, Lawson aims to strengthen collaboration with KDDI, which has a customer base built on telecommunications-related businesses and various digital services to respond to the accelerating changes in the business environment. This led to the signing of the partnership agreement.
KDDI is expanding into a wide range of business areas including mobile telecommunications as core business, as well as banking, insurance, education, travel, and delivery services. Additionally, KDDI operates one of Japan’s largest subscription services au Smart-Pass Premium with over 13 million users.
Lawson has a broad range of customer touchpoints with approximately 14,600 convenience stores in Japan, as well as supermarket chains “SEIJO-ISHII”, entertainment business including ticket sales, movie theaters, travel agencies of “Lawson Entertainment”, and financial services of ”Lawson Bank” through in-store ATMs.
By developing real-digital hybrid services as leveraging each other’s customer bases and services, we aim to expand our store networks, enhance service offerings at Lawson stores such as telecommunication, finance, healthcare, and education, and expand economic zones of loyalty point program. Additionally, we work towards achieving Lawson’s long-term goal of realizing a decarbonized society by environmental reduction measures.
4. Overview of the public tender offer
KDDI is planning to conduct a public tender offer for shares of Lawson. If the offer is completed, we plan to conduct series of procedures to make MC and KDDI the only major shareholders of Lawson. After the deal, MC and KDDI will hold 50% of voting rights in Lawson. If the procedures are conducted, it is expected to result in Lawson being delisted from the stock exchange.
We consider that this transaction will allow us to deal with environmental changes more flexibly and accelerate the strengthening of our partnership as outlined above by making the most of MC and KDDI’s business foundations, human resources, expertise, and networks, leading to enhancement of Lawson’s corporate value.
About Mitsubishi Corporation (MC)
Head office address: 2-3-1 Marunouchi, Chiyoda-ku, Tokyo,Japan
Business: MC is a global integrated business enterprise that develops and operates businesses together with its global network of around 1,700 group companies. MC has 10 Business Groups that operate across virtually every industry（Natural Gas, Industrial Materials, Petroleum & Chemicals, Mineral Resources, Industrial Infrastructure, Automotive & Mobility, Food Industry, Consumer Industry, Power Solution, and Urban Development）, plus the addition of Industry DX Group and Next-Generation Energy Business Group.
About KDDI CORPORATION
Head Office address: 3-10-10 Iidabashi, Chiyoda-ku, Tokyo, Japan Business: Telecommunications business
About Lawson, Inc.
Head Office address: 11-2, Osaki 1-chome, Shinagawa-ku, Tokyo, Japan Business: Franchise chain development of “LAWSON”
Chiyoda Corporation and Toyota Motor Corporation have agreed to jointly develop a large-scale electrolysis system and construct a strategic partnership and have signed a basic agreement on cooperation. The goal is to contribute to achieving the government targets(1) for the introduction of electrolysis equipment both in Japan and overseas as part of the Basic Strategy on Hydrogen formulated by the government.
The production and mass production technologies for electrolysis cell stacks using the fuel cell technology held by Toyota and the processing plant design technologies and large-scale plant construction technologies held by Chiyoda will be brought together to develop a large-scale electrolysis system that can be competitive. This will allow adaptation to the rapidly expanding hydrogen production markets both inside and outside Japan.Specifically, the goal is to develop an electrolysis system with high hydrogen production efficiency while being the world’s smallest in size.
To be able to respond to the various needs of customers, such as the amount of hydrogen used or limitations on plant floor area, 5 MW-class equipment will be used as the basic unit (floor area: 2.5 m x 6 m, hydrogen production capacity: approx. 100 kg/hr) for development, and will be combined to create a standard package, allowing the construction of large-scale electrolysis systems.
The merits of this equipment include the fact that it only takes up about half the floor area of conventional equipment and offers ease of maintenance while allowing easier shipping, shortened on-site construction times, and lower civil engineering and construction costs. Toyota’s particular expertise in industrial products and Chiyoda’s particular expertise in plant engineering will be combined and optimized, allowing benefits such as lower costs, increased production efficiency, and more stable quality for the electrolysis systems required to produce green hydrogen.
With the signing of this basic agreement on cooperation, the introduction of an electrolysis system in Hydrogen Park at the Toyota Honsha Plant will start in FY2025. It will be expanded in the future to the 10 MW class and used for verification and development. Any further developments will be released as they happen.
Both companies will exhibit at the H2&FC EXPO (organized by RX Japan Ltd., held from Feb. 28 to Mar. 1, 2024) held at Tokyo Big Sight (Koto-ku, Tokyo).
Toyota will continue working on “Producing Happiness for All” with the aim of achieving a hydrogen-based society through a multi-pathway approach in the value chain of “Produce / Transport / Store / Use” which aims for the social implementation of hydrogen.
(1) The government targets for the introduction of electrolysis equipment are set at about 10% (approx. 15 GW) of the share of Japan-based companies (including parts manufacturers) within the 134 GW forecast for introduction globally by 2030. (
The World of Concrete will be hosting its 50th Anniversary trade show and is the world’s largest gathering for the concrete and masonry industries with total attendance at 60,000+ from 34 countries and representing over 1,300 companies of industry professionals from around the world. World of Concrete is evolving and plays an integral role in facilitating improvements in sustainability in its impacts towards environmental and social responsibility.
SMC will feature its newest innovation in industrial dust removal and mitigation with its Smart VentTM Jet Pulse Valves that have integrated a solenoid valve and printed circuit board (PCB) into each individual pulse valve to clean bag filters on-demand by monitoring differential pressure of each bag filter. This eliminates the old school timer box which indiscriminately cleaned the complete row of bag filters when only one was clogged in dust.
SMC automation and process components:
JSXFA 2-Port Dust Collector Jet Pulse Valve – is rated for 10 million cycles for extended longevity in reverse jet dust collector baghouse applications
XT316 Air Shocker Cylinder – Prevents and dislodges adhesion and blockage of bulk powder materials inside hoppers and storage units
UV Resistant Products – Robust fittings and tubing designed for prolonged outdoor exposure
Environmental Resistant Actuators – Pneumatic stainless-steel cylinders rated for IP65 and IP67 protection
AMG Water Removal System – Removes 99% of moisture and liquids trapped inside air tubing
VBA Air Pressure Booster Regulators – Increase pressure by up to two times while reducing product size by 40%.
IDFB/IDU Refrigerated Air Dryers – Protect and extend the cycle life of downstream pneumatic components by lowering the dew point of compressed air with refrigerated air dryers
Visit SMC’s Booth N1969, North Hall – Las Vegas Convention Center, 3150 Paradise Road, Las Vegas, NV 89109.
About SMC Corporation of America SMC Corporation of America (Noblesville, IN), a subsidiary of SMC Corporation (Tokyo, Japan), is a comprehensive manufacturer of components for the Automation, Controls, and Process industries. With technical centers in Japan, the US, Europe, and China, our vision to be the global standard for sustainable automation is realized through partnering with our customers to discover opportunities for energy and resource savings by reducing overall compressed air and electrical consumption.
SMC Corporation of America Tak Takahashi 800-762-7621
Mitsubishi Corporation and Amogy are excited to announce a strategic partnership that will focus on accelerating the adoption of Amogy’s ammonia-to-power and ammonia cracking technology in large-scale hydrogen carrier applications in East Asia, particularly Japan and South Korea.
The joint study set to commence in December 2023 with SK Innovation, will first assess a large-scale deployment of Amogy’s technology, including analysis of costs across the value chain, and explore opportunities for market expansion across the ammonia and hydrogen supply chain. Upon the completion of the initial phase, three companies are looking to explore joint pilot opportunities in the strategic regions.
Ammonia, a versatile and widely used chemical compound, has emerged as a promising renewable fuel and a cost-effective carrier of hydrogen. Ammonia can be created by combining hydrogen and nitrogen at the export location. It is then decomposed (cracked) back to hydrogen and nitrogen at the receiving site and used in multiple applications including power generation, a process that enables safe and efficient transportation. Ammonia has high energy density, favorable storage characteristics, and a well-established transportation infrastructure due to its use in industrial products such as fertilizer. Amogy’s technology combines ammonia cracking and hydrogen fuel-cell power generation into a single system, enabling streamlined and efficient use of this low-carbon fuel. In addition, Amogy’s ammonia cracking technology is expected to have high potential to be utilized as hydrogen carrier in large-scale transportation.
Countries such as Japan and Korea suffer from the lack of abundant renewable resources, necessitating the imports low-carbon fuels. Both countries have identified ammonia as an attractive and commercially viable hydrogen carrier and plan to use it to decarbonize their power generation, industrial heat generation, and maritime shipping in the near future. Japan plans to utilize 3 million metric tons per year (MTA) of ammonia as fuel by 2030 and anticipates increasing its ammonia imports to 30 MTA by 2050. Korea announced ambitious plans to utilize hydrogen and ammonia to meet 7.1% country’s power demand by 2036.
This collaboration marks an important step towards advancing clean energy solutions for a sustainable future by informing how we transport and utilize hydrogen, transforming the energy landscape in both Japan and Korea. With the urgent need to reduce emissions in both countries, this partnership underscores the importance of innovative thinking to progress technologies that will help us achieve that goal.
Both Mitsubishi Corporation and SK Innovation have participated in Amogy’s recent $150M Series B fundraising which was led by SK Innovation.
About Amogy
Founded in 2020 by four MIT PhD alumni, Amogy aims to decarbonize hard-to-abate sectors, such as shipping, power generation, and heavy-duty transportation, with its ammonia-based, emission-free, high energy-density power solutions. To date, Amogy’s ammonia-to-power technology has been demonstrated with success in a drone, tractor, and semi-truck. The Amogy team is currently retrofitting a tugboat to be the world’s first ammonia-powered vessel. Amogy’s European headquarters is in Stavanger, Norway. The team in Stavanger has significant experience in the maritime industry and is expanding. The company’s investors include Amazon’s Climate Pledge Fund, AP Ventures, SK Innovation, Aramco Ventures and Mitsubishi Corporation. https://amogy.co/
About Mitsubishi Corporation (MC)
MC is a global integrated business enterprise that develops and operates businesses through its global network. MC has 10 Business Groups including Natural Gas, Mineral Resources, Power Solution and so on. Through the 10 Business Groups plus the addition of its Industry Digital Transformation Group and Next-Generation Energy Business Group, MC’s current activities have expanded far beyond its traditional trading operations to include project development, production and manufacturing operations, working in collaboration with our trusted partners around the globe. With an unwavering commitment to conducting business with integrity and fairness, MC remains fully dedicated to growing its businesses while contributing to a prosperous society.
Specifically, the goal is to develop an electrolysis system with high hydrogen production efficiency while being the world’s smallest in size.
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