Sojitz Building Materials Establishes Company for the Sale of Interior Materials and Installation Management in Indonesia
OREANDA-NEWS. Sojitz Building Materials Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director: Tetsuya Onishi; “Sojitz Building Materials”), a fully-owned subsidiary of Sojitz Corporation (“Sojitz”), has concluded a joint venture agreement with Indonesia’s wooden interior materials manufacturer PT. Nippo Tech Sejahtera (“NT”) and Indonesia’s interior work company PT. Batura Mas (“BM”) to establish PT. Sojitz Nippo Indonesia (“SNI”), a company to sell interior materials and provide installation management work in Indonesia.
Indonesia’s population is growing at a rate of more than 1% annually, and the country’s economic growth rate continues to exceed 5% each year. As a result of this growth, experts predict a dramatic rise in demand for the development of luxury condominiums and hotels, as well as greater building functionality. In addition, Japanese companies are consequently accelerating efforts to develop real estate in Indonesia. SNI will establish itself as the first Japanese trading company in Indonesia to offer everything from the sale of interior materials to installation management, with the goal of capturing the luxury real estate market’s demand for interior materials.
Sojitz Building Materials will capitalize on its experience in building materials sales and installation management in Japan to support SNI’s operations through general management of the company and by utilizing Sojitz Group’s customer networks.
NT is a manufacturer of high-grade wooden products for interiors which has been in such business for over 30 years in Indonesia. From its many years of business experience with Japanese companies, NT has acquired the manufacturing know-how as well as the techniques to develop interior materials with the same high quality seen in the Japan market at a competitive price.
BM possesses advanced installation know-how and skill when it comes to the installation of interior materials for luxury hotels and condominiums in Indonesia.
SNI plans to begin commercial operations in March 2018, aiming to reach JPY 4 billion in sales by 2020 and JPY 10 billion in 2025 by meeting Indonesia’s real estate market demands. SNI hopes to become a new source of earnings for Sojitz Building Materials while simultaneously contributing to the economic development of Indonesia.
Company Overview – PT. Sojitz Nippo Indonesia (“SNI”)
|Established||February 2018 (planned)|
PT. Batura Mas 10%
|Capitalization||IDR 40 billion (approx. JPY 320 million)|
|Main Business||Sales of interior materials and installation management|