English TOP>About Chubu Electric Power>Press Releases and Other Company News>Other Press Conferences>November 2008 Federation of Electric Power Companies of Japan Press Conference with Chubu Electric Executive Vice President Masahiro Kakumu

Press Releases and Other Company News November 2008 Federation of Electric Power Companies of Japan Press Conference with Chubu Electric Executive Vice President Masahiro Kakumu

November 13, 2008

Chubu Electric Power Co.,Inc.

Today, I will be talking about two items:

  • The economy of the Chubu region from the perspective of electric power demand
  • Our exceptional subsidiary, Chuden Wing

The economy of the Chubu region from the perspective of electric power demand

  •  I'd like to start by talking about the economy of the Chubu region from the perspective of electric power demand.
    Reference 1, Year-on-year rate of increase in amount of electric power sold, by high-volume industry sector.
  • As we have already announced, the electric power sold to our high-volume customers during the first half of this year showed a year-on-year rise of 1.2%.
  • Looking by month, the results generally surpassed last year's up to July. There was a major change, however, in the later part of the first half, in August and September, which fell below the previous year's results.This was the first time since October-November 2003 that the amount of electric power sold to high-volume customers had fallen below the previous year for two consecutive months.
  • Automobile, LCD, semiconductor, and other manufacturers in the machinery category accounted for 40% of the amount of electric power sold to high-volume customers. This sector has been driving the economy in the Chubu region.
  • Total sales in the machinery category for the first half were 2.6% higher year-on-year. In the last part of the first half, however, the two consecutive months of August and September showed a decline from the previous year.
  • First-half results for industries in the raw materials category also showed an overall trend toward slowing growth. Chemicals, iron and steel, and other such industries similarly fell into the negative range in August and September.
  • One reason for this appears to be the large share held by the machinery category in the Chubu region, as well as the fact that the machinery category has such a broad range of supporting industries. Consequently, production trends in that sector are also having an effect on other industries, including those in the raw materials category.
  • The effective ratio of job openings, index of industrial production, export statistics, and other economic indicators for the Chubu region are showing a tendency to slow down over time, just as in the country as a whole.
  • Under these circumstances, these indicators, taken in conjunction with the latest developments in the amount of electric power sold to high-volume customers, suggest that an increasing slowdown of the economy is also taking place in this region, which had been considered healthy up to now.
  • The amount of electric power sold in October is presently being calculated, and these figures will be notified as soon as they are complete. The outlook is that sales of electric power to high-volume customers will fall below last year's figures for three consecutive months.
  • The Chubu region has many export-oriented firms, and it is characteristic of the region to be easily affected by exchange rate fluctuations and economic conditions in the United States and other countries.
  • The financial crisis in the United States has led to worldwide drops in share prices and uncertain exchange rates. If these conditions continue, the concern will be that the Chubu economy will also see a further downward impact on corporate income and personal consumption. Therefore, we intend to keep a close watch on upcoming trends, including the economic policies of recently elected President Obama of the United States.
  • On the other hand, the transport infrastructure in the Chubu region has been improving, and access to the Kansai and Hokuriku regions has been getting better. The New Meishin Expressway opened to traffic in February this year, for example, and the entire Tokai-Hokuriku Expressway opened in July. The flow of people and goods is expected to become increasingly active.
  • There are also indications that local business circles and government are collaborating to promote the clustering of advanced nanotech-related technologies. For example, the Nano Structures Research Laboratory was established here, mainly by local industry, and is scheduled to enter full operation in December of this year.
  • There is also the aircraft industry, which has a base of supporting industries as broad as the automobile industry's, and which is likely to become a major pillar of the Chubu economy. This industry is gradually establishing a solid presence, another indication that the movement to increase the breadth of skilled manufacturing is gaining momentum.
  • The high-quality manufacturing that is the foundation of the Chubu economy has therefore begun to advance toward the future. I also expect it to fuel further expansion in the Chubu region.

Our exceptional subsidiary, Chuden Wing

  • Next, I would like to give a short introduction to our exceptional subsidiary Chuden Wing, of which I am president and director. Thanks to the support we have received, the number of visitors who toured Chuden Wing is about to pass the 10,000 point at any time now.
    Reference 2, Overview of exceptional subsidiary Chuden Wing.
  • Chuden Wing was founded with the purpose of balancing two aims, the promotion of employment for physically and mentally challenged individuals, and the development of competitive businesses. We have been in business since April 2003.
  • As of the end of October, we have 55 employees, of whom 38 are physically and mentally challenged. The businesses we are pursuing include the printing business; trading business, including the marketing and packaging of novelty products; and gardening business, including cultivation of flowers and maintenance of flower beds.
  • Chuden Wing follows these basic policies in conducting business:
    - We maintain market levels for quality, price, and speed in theproducts and services we provide.
    - We realize a lively workplace where people can do their work with a sense of pride and personal purpose.
  • Specific undertakings include participation in Expo 2005 Aichi, Japan, the exposition that started in March 2005 and ran for half a year. We supplied commemorative products for the Wonder Circus Electric Power Pavilion, operated by the Federation of Electric Power Companies of Japan, and handled the design and maintenance of its flower beds. Our efforts were greatly enjoyed by visitors to the pavilion.
  • More recent activities also include holding gardening classes for local residents and selling environmentally-friendly flower pots made using driftwood from dams.
  • We have been reinforcing the competitiveness of Chuden Wing products and services by studying business operations that can make the maximum use of the preeminent capabilities of individual employees with physical and mental challenges and incorporating these operations into our business model.
  • Many people, including members of local government bodies and other corporations, have shown interest in these initiatives to achieve a balance between the promotion of employment for physically and mentally challenged individuals and the development of competitive businesses. Therefore, as mentioned at the start, the number of visitors to Chuden Wing is now expected to reach 10,000.
  • In the future, we hope to have many people tour our facilities and provide their views from a variety of perspectives. We will incorporate this feedback into our business in the effort to provide products and services with still higher added value.
  • As a company involved in business for the public good, we hold to our continuing commitment to make Chuden Wing's activities provide whatever useful service to the community we can.

That is all for me.