April 14, 2011
The Iino Group has formulated IEG14, a medium-term business plan (for April 2011 – March 2014) that aims to promote new growth in its Shipping Business and enhance its Real Estate Business’s earnings base.
Since fiscal 2007, the Iino Group has been working to achieve continuous growth under its previous medium-term business plan, ISG12 (Iino’s Strategic Growth Plan to 2012). In its Real Estate Business, Iino Lines embarked on reconstruction of the Iino Building amid extremely difficult market conditions. In advance of its opening this fall, however, it has tentatively secured tenants for all floors of the building’s lease area. In the Shipping Business, freight rates remain soft in the mainstay Chemical Tanker Division, and turmoil persists in the Dry Bulk Division in the wake of flooding in Australia and the recent earthquake and tsunami disaster in northeast Japan.
Amid this environment, the Iino Group’s management determined that the current business environment is not conducive to achieving ISG12’s goals, formulated in 2007 before the onset of the global financial crisis. Management therefore decided to formulate a new medium-term business plan before ISG12’s original expiry date.
Under the new medium-term business plan, the Iino Group will make further qualitative improvements to its two-pronged business platform encompassing its Shipping Business and Real Estate Business. It will implement structural reforms aimed at generating further growth in the Shipping Business in particular.
Aiming for operating profit of ¥10 billion in the mid 2010s, Iino Lines will build up its fleet to include roughly 50 chemical tankers and 25 bulk carriers. It will also conduct organizational strengthening to bolster its Real Estate Business, a source of stable earnings, and its dedicated vessel operations. Iino Lines aims to expand its Shipping Business by focusing on securing cargoes for short- to medium-term charters.
In conjunction with structural reforms of the Chemical Tanker Division in fiscal 2011, the Company will consider selling some of the vessels that it owns and replacing some of its assets.
