Mitsubishi UFJ Lease and Sumitomo Corp. Start Forestry Revival Project in Gifu

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Mitsubishi UFJ Lease & Finance Co. and Sumitomo Corp., a major Japanese general trading company, announced on July 23, 2010, that they had started a project to revitalize forests and the forestry industry in Gifu Prefecture in collaboration with the Gifu Prefecture's Federation of Forestry Cooperatives. This is the first case in Japan in which private-sector corporations and a forestry cooperative will collaborate to restore privately-owned forests.

There has been concern that Japan's forests are losing their original functions to conserve the healthy natural environment. This is due to lack of adequate management caused by the declining forestry industry, and thus its revival and forest restoration have emerged as critical issues. The project aims to establish a new business framework for the forestry industry by utilizing the management know-how of the private sector in order to achieve sustainable forest management.

In particular, they are considering implementing long-term forest management based on scientific data, improving the efficiency of production controls and logistics, strengthening profitability and financial resource management, and introducing business process methodologies such as PDCA (plan-do-check-act). In addition, they are looking into possibilities for developing the timber market, building a supply chain, and taking advantage of the carbon dioxide emissions trading system as well as biomass technology.

In this collaboration, Mitsubishi UFJ Lease and Finance will support the project's financial aspects. Its responsibilities will include overseeing the forestry business planning, securing profitability and financial resources, providing services to access the carbon dioxide emissions trading system and biomass technology as well as handling financial loans and machinery leases. Sumitomo Corp. will handle the other aspects including timber sales, logistics controls, and the establishment of supply chain management.

Mitsubishi UFJ Lease & Finance Co. official website
http://www.lf.mufg.jp/english/

Posted: 2010/11/05 06:00:15 AM