Head on this page.

Industrial Development Support Designed to Provide Employment

Print this page

Collaboration with Regional Financial Institutions to Support the Revitalization of Disaster–stricken Enterprises

Setting up of the Mizuho Tohoku Industry Development Fund

In August 2011, Mizuho set up the Mizuho Tohoku Industry Development Fund (hereinafter, the Fund) with the objective of contributing to reconstruction and revitalization efforts in the Tohoku Region over the medium to long term by providing capital funds to promote industrial development in the region. The fund provides assistance to not only Mizuho customers but also companies introduced by financial institutions in disaster–stricken areas. Drawing on a combination of Mizuho's industry knowledge, network of major corporations and financial institutions, and experience with middle market and small– and medium–sized enterprises, the Fund is collaborating with regional financial institutions to rehabilitate companies and foster industrial development in disaster–stricken areas.

Providing Capital Funding to Support Corporate Business Revitalization that Promotes Economic Revitalization in Disaster–stricken Areas

In March 2013, the Fund provided JPY 1 billion in funding support to Yamanishi Co., Ltd. (hereinafter, the company), a shipbuilding company based in Ishinomaki City, Miyagi Prefecture. This initiative increases the number of companies that have received support by means of the Fund to three.

Established in 1920, the company is one of the Tohoku region's leading shipbuilding companies, and its facilities were severely damaged by the Great East Japan Earthquake disaster. The company has a long history and large number of employees, and providing support for the revitalization of its business operations is highly significant with respect to the economic revitalization of the disaster–stricken areas as well as the revitalization of the region's fishing industry, which is one of the regions principal industries.

The damage to the company was extremely severe—after its production facilities were destroyed by the tsunami, the company was forced to discontinue almost all of its business activities for roughly a year. Various measures were taken to provide the company with support, however; its main bank, the 77 Bank Ltd., and other financial institutions forgave the company's outstanding debts and other support initiatives, and the Corporation for Revitalizing Great East Japan Earthquake–Stricken Businesses provided JPY 4 billion of support.

With these conditions as a backdrop, Mizuho received a request for collaboration from 77 Bank. Based on consideration of the company's societal role in its region and other factors, the Fund was used in March 2013 to provide JPY 1 billion in funding support through the subscription of subordinated debt issued by the company.

Mizuho Tohoku Industry Development Fund Operating Scheme
Image: Mizuho Tohoku Industry Development Fund Operating Scheme

*JVs: Joint Ventures

Photo: A ship launching ceremony

A ship launching ceremony

Support for Biomass–Fueled Electric Power Generation Business that Utilizes Forestry Resources in the Disaster–stricken Areas

Supporting Efforts to Promote Renewable Energy as a Means of Revitalizing the Disaster–stricken Areas

Consciousness of Japan's nationwide energy challenges has deepened since the earthquake disaster, and the utilization of renewable energy in the disaster–stricken areas is attracting increasing attention.

Mizuho has previously proactively engaged in projects related to renewable energy, and it has a strong record of performance in a broad array of renewable energy–related business ranging from consulting through funding operations. Making use of its accumulated know–how to support efforts to promote renewable energy in the Tohoku region, MHIR is participating in the Fukushima Floating Offshore Wind Farm Demonstration Project and has engaged in consulting work related to biomass–fueled electric power generation in the disaster–stricken areas.

During fiscal 2012, MHBK and MHRI provided multidimensional support related to wood biomass–fueled electric power generation business to Utti Kawai Co., Ltd. (hereinafter, the company), a lumber company based in Miyako City, Iwate Prefecture.

Broad Range of Support for "Realizing Business in Wood Biomass–Fueled Electric Power Generation"

The Tohoku region is rich in forestry resources but its tree harvesting and other forestry activities have been curtailed in recent years owing to such factors as a lack of successors to forestry businesses and increases in low–priced lumber imports. Moreover, harmful rumors associated with the nuclear power plant disaster have caused such problems in the disaster–stricken areas as decreases in sales of wood chips and bark with applications related to animal feeds and mushroom cultivation as well as difficulties in finding locations to dispose of waste–wood from damaged houses and other sources.

On the other hand, obtaining stable supplies of wood–chips for use as fuel is the biggest challenge that must be surmounted to commercialize wood biomass–fueled electric power generation business. If logging in the disaster–stricken areas can be promoted and wood chips and waste–wood in low demand from the region can be utilized as a means of providing stable supplies of wood–chip fuel for wood biomass–fueled electric power generation business, the initiative will contribute to the solution of numerous problems, such as the need to revitalize the forestry industry, the need to make use of forestry resources, the need to expeditiously process waste–wood, and the need to create additional energy sources.

For this reason, Japan's Forestry Agency has established a subsidy system for supporting the commercialization of wood biomass–fueled electric power generation business, biomass–fueled power generation has been included within the scope of Japan's Feed–in Tariff Scheme for Renewable Energy, and other diverse measures are being taken to promote such renewable power generation operations.

MHBK has participated in the company's biomass power generation business initiative from the conceptual planning stage. In collaboration with MHIR, which has abundant knowledge and know–how, the Bank provided support for the drafting of a business plan. After the decision was made to commercialize this business, MHBK made full use of the Mizuho Group's broad–ranging capabilities to provide multi–dimensional and detailed support, such as the provision of introductions to power plant manufacturers, the provision of business–use land, and the provision of introductions to lawyers and other specialists. Regarding funding, MHBK has collaborated with regional financial institutions to provide the first round of financing needed to fund plant construction.

Each aspect of the company's wood biomass power generation business is creating employment opportunities, such as those related to logging and wood processing activities to provide fuel and those related to power plant operations, and regional society has shown growing interest in the creation of an additional energy source and other benefits the business is expected to offer. This project is MHBK's first financing package for a renewable energy–based electric power generation business in the disaster–stricken areas.

Photo: A wood biomass–fueled electric power plant

A wood biomass–fueled electric power plant

Branches (Japan)

Branches (International)

Integrated Report

CSR Management

Fostering Industries with the Aim of Generating Business Opportunities

Corporate Information

Group Companies

Mizuho's Brand Strategy

It moves to the head on this page.
It moves to the head on this page.