is
Japan
Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...
's largest
trading company (
sogo shosha
are Japanese companies that trade in a wide range of products and materials. In addition to acting as intermediaries, ''sōgō shōsha'' also engage in logistics, plant development and other services, as well as international resource explorat ...
) and a member of the
Mitsubishi
The is a group of autonomous Japanese multinational companies in a variety of industries.
Founded by Yatarō Iwasaki in 1870, the Mitsubishi Group historically descended from the Mitsubishi zaibatsu, a unified company which existed from 1870 ...
keiretsu
A is a set of companies with interlocking business relationships and shareholdings. In the legal sense, it is a type of informal business group that are loosely organized alliances within the social world of Japan's business community. The ''ke ...
. As of 2022, Mitsubishi Corporation employs over 80,000 people and has ten business segments, including
finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fina ...
,
banking
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.
Because ...
,
energy
In physics, energy (from Ancient Greek: ἐνέργεια, ''enérgeia'', “activity”) is the quantitative property that is transferred to a body or to a physical system, recognizable in the performance of work and in the form of heat a ...
,
machinery,
chemical
A chemical substance is a form of matter having constant chemical composition and characteristic properties. Some references add that chemical substance cannot be separated into its constituent elements by physical separation methods, i.e., wi ...
s, and
food
Food is any substance consumed by an organism for nutritional support. Food is usually of plant, animal, or fungal origin, and contains essential nutrients, such as carbohydrates, fats, proteins, vitamins, or minerals. The substance is inge ...
.
History
The company traces its roots to the
Mitsubishi
The is a group of autonomous Japanese multinational companies in a variety of industries.
Founded by Yatarō Iwasaki in 1870, the Mitsubishi Group historically descended from the Mitsubishi zaibatsu, a unified company which existed from 1870 ...
conglomerate founded by
Yataro Iwasaki. Iwasaki was originally employed by the
Tosa clan of modern-day
Kōchi Prefecture
is a prefecture of Japan located on the island of Shikoku. Kōchi Prefecture has a population of 757,914 (1 December 2011) and has a geographic area of 7,103 km2 (2,742 sq mi). Kōchi Prefecture borders Ehime Prefecture to the northwest and ...
, who posted him to
Nagasaki
is the capital and the largest city of Nagasaki Prefecture on the island of Kyushu in Japan.
It became the sole port used for trade with the Portuguese and Dutch during the 16th through 19th centuries. The Hidden Christian Sites in the ...
in the 1860s. During this time, Iwasaki became close to
Sakamoto Ryōma
was a Japanese ''samurai'', a '' shishi'' and influential figure of the ''Bakumatsu'' and establishment of the Empire of Japan in the late Edo period.
He was a low-ranking ''samurai'' from the Tosa Domain on Shikoku and became an active oppo ...
, a major figure in the
Meiji Restoration
The , referred to at the time as the , and also known as the Meiji Renovation, Revolution, Regeneration, Reform, or Renewal, was a political event that restored practical imperial rule to Japan in 1868 under Emperor Meiji. Although there were ...
that ended the
Tokugawa shogunate
The Tokugawa shogunate (, Japanese 徳川幕府 ''Tokugawa bakufu''), also known as the , was the military government of Japan during the Edo period from 1603 to 1868. Nussbaum, Louis-Frédéric. (2005)"''Tokugawa-jidai''"in ''Japan Encyclopedia ...
and restored the primacy of the
emperor of Japan
The Emperor of Japan is the monarch and the head of the Imperial House of Japan, Imperial Family of Japan. Under the Constitution of Japan, he is defined as the symbol of the Japanese state and the unity of the Japanese people, and his positio ...
in 1867. Iwasaki was placed in charge of the Tosa clan's trading operation, Tsukumo Shokai, based in
Osaka
is a designated city in the Kansai region of Honshu in Japan. It is the capital of and most populous city in Osaka Prefecture, and the third most populous city in Japan, following Special wards of Tokyo and Yokohama. With a population of 2. ...
. This company changed its name in the following years to Mitsukawa Shokai and then to Mitsubishi Shokai. Around 1871, the company was renamed Mitsubishi Steamship Company and began a mail service between Yokohama and Shanghai with government sponsorship.
Under Iwasaki's leadership in the late 1800s, Mitsubishi diversified its business into insurance (
Tokio Marine Insurance Company and
Meiji Life Insurance Company), mining (Takashima Coal Mine) and shipbuilding.
Following his death in 1885, his successor
Yanosuke Iwasaki
was a Japanese banker, businessman, investor, and politician. He served as the 4th Governor of the Bank of Japan (BOJ). He was created a Baron in 1900; and he was a member of Japan's House of Peers.
Notes
References
* Weston, Mark. (1999). ...
merged the shipping operation with a rival enterprise to form the
Nippon Yusen Kaisha (NYK) and refocused Mitsubishi's business on coal and copper mining. In 1918, the group's international trading business was spun off to form Mitsubishi Shoji Kaisha. Mitsubishi Goshi Kaisha served as the parent company of the group through
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, during which group company
Mitsubishi Heavy Industries
is a Japanese multinational engineering, electrical equipment and electronics corporation headquartered in Tokyo, Japan. MHI is one of the core companies of the Mitsubishi Group and its automobile division is the predecessor of Mitsubishi Mo ...
(launched in 1934) produced ships, aircraft and heavy machinery for the war effort.
After the war,
the administration of Douglas MacArthur called for the dissolution of the "''
zaibatsu
is a Japanese language, Japanese term referring to industrial and financial vertical integration, vertically integrated business conglomerate (company), conglomerates in the Empire of Japan, whose influence and size allowed control over signi ...
''" corporations that dominated the Japanese economy. Mitsubishi was the only major zaibatsu to initially refuse this request, at the orders of the president
Koyata Iwasaki, who shortly thereafter fell seriously ill.
Mitsubishi eventually dissolved in 1947, and under restrictive rules imposed by the occupation authorities, the employees of the Mitsubishi Shoji trading arm rebranded into 100 separate companies. Beginning in 1950, the restrictions on re-consolidation of the ''zaibatsu'' were eased, and by 1952 most of the former Mitsubishi Shoji had coalesced into three companies.
The current Mitsubishi Corporation was founded by the merger of these three companies to form Mitsubishi Shoji Kaisha, Ltd. in 1954; Mitsubishi listed on the
Tokyo Stock Exchange
The , abbreviated as Tosho () or TSE/TYO, is a stock exchange located in Tokyo, Japan. It is the third largest stock exchange in the world by aggregate market capitalization of its listed companies, and the largest in Asia. It had 2,292 listed ...
and
Osaka Stock Exchange
, renamed from , is the largest derivatives exchange in Japan, in terms of amount of business handled.
, the Osaka Securities Exchange had 477 listed companies with a combined market capitalization of $212 billion. The Nikkei 225 Futures, intro ...
in the same year. It changed its name to "Mitsubishi Corporation" in 1971.
Concurrently with its relaunch, Mitsubishi opened fourteen liaison offices outside Japan, as well as a US subsidiary called Mitsubishi International Corporation with offices in New York and San Francisco. By 1960, Mitsubishi had fifty-one overseas offices. Mitsubishi's first large-scale investment outside Japan was a
liquefied natural gas
Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volu ...
project in
Brunei
Brunei ( , ), formally Brunei Darussalam ( ms, Negara Brunei Darussalam, Jawi alphabet, Jawi: , ), is a country located on the north coast of the island of Borneo in Southeast Asia. Apart from its South China Sea coast, it is completely sur ...
, committed to in 1968.
Along with
Mitsubishi Bank
was a major Japanese bank that served as the main bank for the Mitsubishi conglomerate/''keiretsu''. It merged with The Bank of Tokyo in 1996 to form The Bank of Tokyo-Mitsubishi (now MUFG Bank).
The bank's operations date to 1880, when Mitsubi ...
, Mitsubishi Corporation played a central role in international trading for other constituents of the former Mitsubishi ''zaibatsu'' during the postwar era, such as Mitsubishi Heavy Industries and the
Mitsubishi Motor Company, forming a major ''
keiretsu
A is a set of companies with interlocking business relationships and shareholdings. In the legal sense, it is a type of informal business group that are loosely organized alliances within the social world of Japan's business community. The ''ke ...
'' business group centered around the Second Friday Conference (''Kinyo-kai'') of company managers.
Mitsubishi was the largest Japanese
general trading company from the late 1960s until the mid-1980s; after falling to fifth place in 1986, it embarked on a series of large overseas acquisitions together with other companies in the Mitsubishi group.
By 2015 Mitsubishi was again the top-ranked general trading company by net earnings. However, Mitsubishi saw its first postwar net loss in the fiscal year ended March 2016, amid a slowdown in the Chinese economy and a slump in the commodity markets, causing Mitsubishi to lose its #1 position to
Itochu
is a Japanese corporation based in Umeda, Kita-ku, Osaka and Aoyama, Minato, Tokyo.
It is one of the largest Japanese ''sogo shosha'' (general trading companies). Among Japanese trading companies, it is distinguished by not being descend ...
.
Berkshire Hathaway
Berkshire Hathaway Inc. () is an American Multinational corporation, multinational conglomerate (company), conglomerate holding company headquartered in Omaha, Nebraska, United States. Its main business and source of capital is insurance, from ...
acquired over 5% of the stock in the company, along with four other Japanese trading houses, over the 12-month period ending in August 2020.
Business segments
Mitsubishi Corporation businesses are divided into eight business sections:
*Business Service Group: Focuses on
information technology
Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology system (I ...
. Mitsubishi is the Japanese partner of
Tata Consultancy Services
Tata Consultancy Services (TCS) is an Indian multinational information technology (IT) services and consulting company with its headquarters in Mumbai. It is a part of the Tata Group and operates in 150 locations across 46 countries. In July ...
and operates a data center in
Mitaka, Tokyo
260px, Inokashira Park in Mitaka
is a city in the western portion of Tokyo Metropolis, Japan. , the city had an estimated population of 190,403, and a population density of 12,000 persons per km². The total area of the city was .
Geography
Mi ...
.
*Global Environmental & Infrastructure Business Group: Handles transportation, water, electricity, and industrial projects. Its infrastructure projects include airports in
Mandalay and
Ulaanbataar, urban railways in
Cairo
Cairo ( ; ar, القاهرة, al-Qāhirah, ) is the capital of Egypt and its largest city, home to 10 million people. It is also part of the largest urban agglomeration in Africa, the Arab world and the Middle East: The Greater Cairo metro ...
,
Doha
Doha ( ar, الدوحة, ad-Dawḥa or ''ad-Dōḥa'') is the capital city and main financial hub of Qatar. Located on the Persian Gulf coast in the east of the country, north of Al Wakrah and south of Al Khor, it is home to most of the coun ...
and
Dubai
Dubai (, ; ar, دبي, translit=Dubayy, , ) is the most populous city in the United Arab Emirates (UAE) and the capital of the Emirate of Dubai, the most populated of the 7 emirates of the United Arab Emirates.The Government and Politics of ...
, and power projects under the ''Diamond Generating'' and ''Diamond Transmission'' names. In 2015, Mitsubishi announced a strategic alliance with Turkey's
Çalık Enerji to boost its infrastructure business in Turkey and Northern Africa.
*Industrial Finance, Logistics and Development Group: Engages in asset management, asset financing, real estate and logistics.
*Energy Business Group: Handles trading and investment in
crude oil
Petroleum, also known as crude oil, or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name ''petroleum'' covers both naturally occurring unprocessed crude ...
,
liquefied natural gas
Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volu ...
,
liquefied petroleum gas
Liquefied petroleum gas (LPG or LP gas) is a fuel gas which contains a flammable mixture of hydrocarbon gases, specifically propane, propylene, butylene, isobutane and n-butane.
LPG is used as a fuel gas in heating appliances, cooking e ...
,
shale gas
Shale gas is an unconventional natural gas that is found trapped within shale formations. Since the 1990s a combination of horizontal drilling and hydraulic fracturing has made large volumes of shale gas more economical to produce, and some ...
,
biofuel
Biofuel is a fuel that is produced over a short time span from biomass, rather than by the very slow natural processes involved in the formation of fossil fuels, such as oil. According to the United States Energy Information Administration (E ...
, and other energy commodities in various countries.
*Metals Group: Develops concessions and trades in
coal
Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen.
Coal is formed when dea ...
,
iron ore
Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the fo ...
,
nickel
Nickel is a chemical element with symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel is a hard and ductile transition metal. Pure nickel is chemically reactive but large pieces are slow to ...
,
chrome,
copper
Copper is a chemical element with the symbol Cu (from la, cuprum) and atomic number 29. It is a soft, malleable, and ductile metal with very high thermal and electrical conductivity. A freshly exposed surface of pure copper has a pinkis ...
,
aluminum
Aluminium (aluminum in American and Canadian English) is a chemical element with the symbol Al and atomic number 13. Aluminium has a density lower than those of other common metals, at approximately one third that of steel. It has ...
,
uranium
Uranium is a chemical element with the symbol U and atomic number 92. It is a silvery-grey metal in the actinide series of the periodic table. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons. Uranium is weak ...
and
platinum
Platinum is a chemical element with the symbol Pt and atomic number 78. It is a dense, malleable, ductile, highly unreactive, precious, silverish-white transition metal. Its name originates from Spanish , a diminutive of "silver".
Platinu ...
. In 2014, Mitsubishi opened a $3.4 billion
coking coal
Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking. The demand for metallurgical coal is highly coupled ...
mine in
Caval Ridge,
Queensland
)
, nickname = Sunshine State
, image_map = Queensland in Australia.svg
, map_caption = Location of Queensland in Australia
, subdivision_type = Country
, subdivision_name = Australia
, established_title = Before federation
, established_ ...
,
Australia
Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
, through its 50% shareholding in the
BHP Mitsubishi Alliance
The BHP Mitsubishi Alliance (BMA) is an Australian coal mining company operating in Central Queensland. The largest coal producer in Australia, it is a joint venture with BHP and Mitsubishi each owning 50%. It was established in 2001.
The BMA ...
.
*Machinery Group: Sells heavy machinery, ships, defense equipment, and motor vehicles (particularly for
Isuzu).
*Chemicals Group: Manufactures and trades in a wide variety of commodity and functional chemicals, especially petrochemicals.
*Living Essentials Group: Develops and trades in consumer products and manages retailing operations; investor in
Lawson and
Alfamart
PT Sumber Alfaria Trijaya Tbk or Alfamart is a primarily-franchised Indonesian convenience store chain. As of May 2021, it had over 17,000 stores spread across Indonesia, 4 million daily customers and tens of thousands of micro, small and medium ...
.
Of these segments, energy is the largest by far, accounting for almost half of the company's consolidated net income in the first half of the fiscal year 2015.
Awards
In 2008 Mitsubishi Corporation was crowned In-House of the Year - Trading Company In-House Team of the Year at the ''2008 ALB Japan Law Awards''.
Environmental record
In March 1998 the Mitsubishi Corporation received the quarterly Greenwash Award. It was awarded to Mitsubishi Corporation for successful efforts at portraying its business operations as environmentally friendly. It was argued that through the use of public relations the corporation demonstrated to the world that
Exportadora de Sal S.A., their subsidiaries facility off the coast of Mexico, was environmentally benign. The facility is a salt evaporation factory and is in a lagoon that also holds a
gray whale calving ground.
As of 2009, Mitsubishi held between 35% to 40% of the worldwide market for bluefin tuna.
Mitsubishi was also the subject of a boycott by the
Rainforest Action Network
Rainforest Action Network (RAN) is an environmental organization based in San Francisco, California, United States. The organization was founded by Randy "Hurricane" Hayes and Mike Roselle in 1985, and first gained national prominence with a gr ...
for its role in the destruction of rainforests through its forestry activities. In November, 2019, Mitsubishi Corporation stated that it will buy
Eneco
Eneco, the trading name of Eneco Groep N.V., is a producer and suppliers of natural gas, electricity and heat in the Netherlands, serving more than 2 million business and residential customers. Eneco headquarters are located in Rotterdam. It ...
, a company that focuses on renewable energy, in a deal valuing the Dutch energy firm at $4.52 billion.
References
External links
*
{{Authority control
Mitsubishi companies
Trading companies based in Tokyo
Conglomerate companies based in Tokyo
Conglomerate companies established in 1954
Companies listed on the Tokyo Stock Exchange
Companies listed on the Osaka Exchange
Companies listed on the London Stock Exchange
Japanese companies established in 1954