Mitsui
Encyclopedia
is one of the largest corporate conglomerates
(keiretsu
) in Japan
and one of the largest publicly traded companies in the world.
Founded by Mitsui Takatoshi
(1622–1694), who was the fourth son of a shopkeeper in Matsusaka
, in what is now today's Mie prefecture
. From his shop, called Echigoya (越後屋), Mitsui Takatoshi's father originally sold miso
and ran a pawn shop business. Later, the family would open a second shop in Edo
(now called Tokyo
).
Takatoshi moved to Edo
when he was 14 years old, and later his older brother joined him. Sent back to Matsutaka by his brother, Takatoshi waited for 24 years until his older brother died before he could take over the family shop, Echigoya. He opened a new branch in 1673; a large gofukuya (kimono
shop) in Nihonbashi
, a district in the heart of Edo. This genesis of Mitsui's business history began in the Enpō
era, which was a nengō meaning "Prolonged Wealth".
In time, the gofukuya division separated from Mitsui, and is now called Mitsukoshi
. Traditionally, gofukuyas provided products made to order; a visit was made to the customer's house (typically a person of high social class or who was successful in business), an order taken, then fulfilled. The system of accountancy was called "margin transaction". Mitsui changed this by producing products first, then selling them directly at his shop for cash. At the time, this was an unfamiliar mode of operation in Japan. Even as the shop began providing dry goods to the government of the city of Edo, cash sales were not yet a widespread business practice.
At about this time, Edo's government had struck a business deal with Osaka
. Osaka would sell crops and other material to pay its land tax. The money was then sent to Edo—but moving money was dangerous in middle feudal Japan. In 1683, the shogunate granted permission for money exchange
s (ryōgaeten) to be established in Edo. The Mitsui "exchange shops" facilitated transfers and mitigated that known risk.
After the Meiji Restoration
, Mitsui was among the enterprises that could expand to become zaibatsu
not simply because they were already big and rich at the start of modern industrial development. Firms like Mitsui and Sumitomo were led by non-family managers such as Minomura Rizaemon, who guided the business by accurately forecasting the coming political and economic situations, by acquaintance with high-ranking government officials or politicians, and bold investment.
Mitsui's main business in the early period were drapery, finance and trade, the first two being the businesses it inherited from the Tokugawa
Era. It entered into mining because it acquired a mine as collateral from the loan it had made, and partly because it could buy a mine cheaply from the government, Mitsui then diversified to become the biggest business in pre-war Japan. The diversification was made mainly into related fields to take advantage of accumulated capabilities; for instance, the trading company entered into chemicals to attain forward integration.
On July 1, 1876, Mitsui Bank, Japan's first private bank, was founded with Takashi Masuda (1848–1938) serving as president. Mitsui Bank, which following a merger with Taiyō-Kobe Bank in the mid 1980s became part of Sakura Bank, survives as part of the Sumitomo Mitsui Banking Corporation
). During the early 20th century, Mitsui was one of the largest zaibatsu
, operating in numerous fields.
During the Second World War, Mitsui employed American prisoners of war as slave laborers, some of whom were permanently maimed by Mitsui employees. Mitsui were involved in the opium
trade in China during this period.
After the end of the war and the dissolution of the zaibatsu, Mitsui lagged somewhat behind its rival Mitsubishi Group and Sumitomo Group in reorganization. Mitsui Bank, which should have been the mainstay and principal capital provider of the group, declined in size due to the collapse of the Imperial Bank of Japan, which resulted in reduced cohesion of the conglomerate. Many companies that were once part of the Mitsui Group have become independent or tied to other conglomerates. Specifically, Toshiba
, Toyota Motors, and Suntory
, once part of the Mitsui Group, became independent, with the Toyota Group becoming a conglomerate in its own right. Ishikawajima-Harima Heavy Industries is now considered to be part of the Mizuho Group, and many companies in the Mitsui-Sumitomo Financial Group are now more closely tied to the Sumitomo Group
than the Mitsui Group. Recently there have been signs that Mitsubishi UFJ Financial Group and the Mitsubishi Group could be taking over other parts of the Mitsui-Sumitomo Financial Group. Mitsukoshi merged into Isetan
, a major department store with a close tie to the Bank of Tokyo-Mitsubishi UFJ
, to form Isetan Mitsukoshi Holdings in April 2008.
, Chuo Mitsui Trust Holdings, Japan Steel Works
, Mitsui Chemicals
, Mitsui Construction Co., Mitsui Engineering and Shipbuilding, Mitsui Fudosan
, Mitsui-gold, Mitsui Mining & Smelting, Mitsui Oil Exploration Co.
(MOECO), Mitsui OSK Lines Ltd., Mitsui Petrochemical Industries Ltd, Mitsui-Soko, Mitsui Sumitomo Insurance Group
, Oji Paper Company
, Pacific Coast Recycling, Sumitomo Mitsui Banking Corporation
, Taiheiyo Cement
, Toray Industries, Toshiba Corporation, Tri-net Logistics Management
Mitsui Group also has substantial interest in Vale and Caemi Mineração e Metalurgia
, which owns 70% of Minerações Brasileiras Reunidas (MBR).
Mitsui Engineering and Shipbuilding Co. owns just over 50% of the shares in MODEC Inc.
MOEX USA Corporation, the United States arm of MOECO, owns a 10% working interest in the Macondo oil and gas prospect
in the Gulf of Mexico
. In April 2010 the semi-submersible drilling rig Deepwater Horizon
, operated by BP Exploration and Production Inc.
, exploded and subsequently sank, resulting in the Deepwater Horizon oil spill
.
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
(keiretsu
Keiretsu
A is a set of companies with interlocking business relationships and shareholdings. It is a type of business group. The keiretsu has maintained dominance over the Japanese economy for the greater half of the twentieth century....
) in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
and one of the largest publicly traded companies in the world.
History
Mitsui Takatoshi
, founder of the Mitsui conglomerate. The second son of Mitsui Sokubei, a grocer and pawnbroker of Matsusaka , in Mie, he showed a remarkably precocious talent for business from an early age, and, moving to Edo at 14 years of age, where he was later joined by his brothers Toshigutsu, and...
(1622–1694), who was the fourth son of a shopkeeper in Matsusaka
Matsusaka, Mie
, sometimes called Matsuzaka, is a city located in central Mie Prefecture, on the island of Honshū, Japan. The city is famous for its beef.-Founding:...
, in what is now today's Mie prefecture
Mie Prefecture
is a prefecture of Japan which is part of the Kansai regions on Honshū island. The capital is the city of Tsu.- History :Until the Meiji Restoration, Mie prefecture was known as Ise Province and Iga Province....
. From his shop, called Echigoya (越後屋), Mitsui Takatoshi's father originally sold miso
Miso
is a traditional Japanese seasoning produced by fermenting rice, barley and/or soybeans, with salt and the fungus , the most typical miso being made with soy. The result is a thick paste used for sauces and spreads, pickling vegetables or meats, and mixing with dashi soup stock to serve as miso...
and ran a pawn shop business. Later, the family would open a second shop in Edo
Edo
, also romanized as Yedo or Yeddo, is the former name of the Japanese capital Tokyo, and was the seat of power for the Tokugawa shogunate which ruled Japan from 1603 to 1868...
(now called Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
).
Takatoshi moved to Edo
Edo
, also romanized as Yedo or Yeddo, is the former name of the Japanese capital Tokyo, and was the seat of power for the Tokugawa shogunate which ruled Japan from 1603 to 1868...
when he was 14 years old, and later his older brother joined him. Sent back to Matsutaka by his brother, Takatoshi waited for 24 years until his older brother died before he could take over the family shop, Echigoya. He opened a new branch in 1673; a large gofukuya (kimono
Kimono
The is a Japanese traditional garment worn by men, women and children. The word "kimono", which literally means a "thing to wear" , has come to denote these full-length robes...
shop) in Nihonbashi
Nihonbashi
, or Nihombashi, is a business district of Chūō, Tokyo, Japan which grew up around the bridge of the same name which has linked two sides of the Nihonbashi River at this site since the 17th century. The first wooden bridge was completed in 1603, and the current bridge made of stone dates from 1911...
, a district in the heart of Edo. This genesis of Mitsui's business history began in the Enpō
Enpo
, also Empo, was a after Kanbun and before Tenna. This period spanned the years from September 1673 to September 1681. The reigning emperor was .-Change of era:...
era, which was a nengō meaning "Prolonged Wealth".
In time, the gofukuya division separated from Mitsui, and is now called Mitsukoshi
Mitsukoshi
is an international department store chain with headquarters in Tokyo, Japan. Mitsukoshi Ltd. has amalgamated with Isetan Co.,Ltd ,and changed company name to Isetan Mitsukoshi Ltd.- History :...
. Traditionally, gofukuyas provided products made to order; a visit was made to the customer's house (typically a person of high social class or who was successful in business), an order taken, then fulfilled. The system of accountancy was called "margin transaction". Mitsui changed this by producing products first, then selling them directly at his shop for cash. At the time, this was an unfamiliar mode of operation in Japan. Even as the shop began providing dry goods to the government of the city of Edo, cash sales were not yet a widespread business practice.
At about this time, Edo's government had struck a business deal with Osaka
Osaka
is a city in the Kansai region of Japan's main island of Honshu, a designated city under the Local Autonomy Law, the capital city of Osaka Prefecture and also the biggest part of Keihanshin area, which is represented by three major cities of Japan, Kyoto, Osaka and Kobe...
. Osaka would sell crops and other material to pay its land tax. The money was then sent to Edo—but moving money was dangerous in middle feudal Japan. In 1683, the shogunate granted permission for money exchange
Money exchange
Money exchange can refer to:* Currency exchange * Foreign exchange market...
s (ryōgaeten) to be established in Edo. The Mitsui "exchange shops" facilitated transfers and mitigated that known risk.
After the Meiji Restoration
Meiji Restoration
The , also known as the Meiji Ishin, Revolution, Reform or Renewal, was a chain of events that restored imperial rule to Japan in 1868...
, Mitsui was among the enterprises that could expand to become zaibatsu
Zaibatsu
is a Japanese term referring to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed for control over significant parts of the Japanese economy from the Meiji period until the end of World War II.-Terminology:...
not simply because they were already big and rich at the start of modern industrial development. Firms like Mitsui and Sumitomo were led by non-family managers such as Minomura Rizaemon, who guided the business by accurately forecasting the coming political and economic situations, by acquaintance with high-ranking government officials or politicians, and bold investment.
Mitsui's main business in the early period were drapery, finance and trade, the first two being the businesses it inherited from the Tokugawa
Edo period
The , or , is a division of Japanese history which was ruled by the shoguns of the Tokugawa family, running from 1603 to 1868. The political entity of this period was the Tokugawa shogunate....
Era. It entered into mining because it acquired a mine as collateral from the loan it had made, and partly because it could buy a mine cheaply from the government, Mitsui then diversified to become the biggest business in pre-war Japan. The diversification was made mainly into related fields to take advantage of accumulated capabilities; for instance, the trading company entered into chemicals to attain forward integration.
On July 1, 1876, Mitsui Bank, Japan's first private bank, was founded with Takashi Masuda (1848–1938) serving as president. Mitsui Bank, which following a merger with Taiyō-Kobe Bank in the mid 1980s became part of Sakura Bank, survives as part of the Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
is a Japanese bank based in Yurakucho, Chiyoda, Tokyo, Japan. It is a member of the Sumitomo Group and Mitsui Group. As of the year 2009, SMBC was the second largest bank in Japan in terms of assets.-History:...
). During the early 20th century, Mitsui was one of the largest zaibatsu
Zaibatsu
is a Japanese term referring to industrial and financial business conglomerates in the Empire of Japan, whose influence and size allowed for control over significant parts of the Japanese economy from the Meiji period until the end of World War II.-Terminology:...
, operating in numerous fields.
During the Second World War, Mitsui employed American prisoners of war as slave laborers, some of whom were permanently maimed by Mitsui employees. Mitsui were involved in the opium
Opium
Opium is the dried latex obtained from the opium poppy . Opium contains up to 12% morphine, an alkaloid, which is frequently processed chemically to produce heroin for the illegal drug trade. The latex also includes codeine and non-narcotic alkaloids such as papaverine, thebaine and noscapine...
trade in China during this period.
After the end of the war and the dissolution of the zaibatsu, Mitsui lagged somewhat behind its rival Mitsubishi Group and Sumitomo Group in reorganization. Mitsui Bank, which should have been the mainstay and principal capital provider of the group, declined in size due to the collapse of the Imperial Bank of Japan, which resulted in reduced cohesion of the conglomerate. Many companies that were once part of the Mitsui Group have become independent or tied to other conglomerates. Specifically, Toshiba
Toshiba
is a multinational electronics and electrical equipment corporation headquartered in Tokyo, Japan. It is a diversified manufacturer and marketer of electrical products, spanning information & communications equipment and systems, Internet-based solutions and services, electronic components and...
, Toyota Motors, and Suntory
Suntory
is a Japanese brewing and distilling company group. Established in 1899, it is one of the oldest companies in the distribution of alcoholic beverages in Japan. Its business has expanded to other fields, and the company now offers everything from soft drinks to sandwich chains...
, once part of the Mitsui Group, became independent, with the Toyota Group becoming a conglomerate in its own right. Ishikawajima-Harima Heavy Industries is now considered to be part of the Mizuho Group, and many companies in the Mitsui-Sumitomo Financial Group are now more closely tied to the Sumitomo Group
Sumitomo Group
is one of the largest keiretsu, founded by Masatomo Sumitomo.-History:The Sumitomo group traces its roots to a bookshop in Kyoto founded circa 1615 by a former buddhist priest,...
than the Mitsui Group. Recently there have been signs that Mitsubishi UFJ Financial Group and the Mitsubishi Group could be taking over other parts of the Mitsui-Sumitomo Financial Group. Mitsukoshi merged into Isetan
Isetan
is a Japanese department store. Based in Shinjuku, Tokyo, Isetan has branches throughout Japan and East Asia, including Bangkok, Jinan, Kaohsiung, Kuala Lumpur, Shanghai, Singapore and Tianjin and formerly in Hong Kong, London and Vienna....
, a major department store with a close tie to the Bank of Tokyo-Mitsubishi UFJ
The Bank of Tokyo-Mitsubishi UFJ
is the largest bank in Japan, which was established on January 1, 2006, with the merger of the Bank of Tokyo-Mitsubishi, Ltd. and UFJ Bank Ltd. The bank serves as the core retail and commercial banking arm of the Mitsubishi UFJ Financial Group....
, to form Isetan Mitsukoshi Holdings in April 2008.
Makeup of the Mitsui Group
Companies currently associated with the Mitsui family include Mitsui & Co.Mitsui & Co.
Mitsui & Co., also known as Mitsui Bussan, is one of the largest sogo shosha in Japan, and also part of the Mitsui Group. Its business area covers energy, machinery, chemicals, food, textile, logistics, finance, and more.- History :...
, Chuo Mitsui Trust Holdings, Japan Steel Works
Japan Steel Works
is a steel manufacturer founded in Muroran, Hokkaidō, Japan in 1907.-History:Japan Steel Works was set up with investment from British firms Vickers and Armstrong Whitworth. During World War II, they manufactured what was then the world's largest gun barrel to be fitted on the battleship Yamato...
, Mitsui Chemicals
Mitsui Chemicals
is a Japanese Chemicals company listed on the Nikkei. It is a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. It employs approximately 13,000 people worldwide. The company mainly...
, Mitsui Construction Co., Mitsui Engineering and Shipbuilding, Mitsui Fudosan
Mitsui Fudosan
, is Japan's largest real estate developer. Mitsui Fudosan is one of the core companies of Mitsui Group.-Corporate Structure:The company is organized into four divisions.*Office Building Division*Real Estate Solution Services Division...
, Mitsui-gold, Mitsui Mining & Smelting, Mitsui Oil Exploration Co.
Mitsui Oil Exploration Co.
is an oil exploration subsidiary of Mitsui & Co. that specializes in natural gas. It has its headquarters in the Hibiya Central Building in Nishi-Shinbashi, Minato, Tokyo.It was one of 17 Mitsui companies that were spun off on July 19, 1969....
(MOECO), Mitsui OSK Lines Ltd., Mitsui Petrochemical Industries Ltd, Mitsui-Soko, Mitsui Sumitomo Insurance Group
Mitsui Sumitomo Insurance Group
is a Japanese insurance holding company headquartered in Tokyo, Japan.Formed in 2001 from the merger of Mitsui Marine & Fire Insurance Co. and Sumitomo Marine & Fire Insurance, it is the third-largest property insurance company in Japan behind Tokio Marine and Sompo Japan, with market share of...
, Oji Paper Company
Oji Paper Company
is a Japanese manufacturer of paper products. It is the 6th-largest paper manufacturing company in the world in terms of revenue.- Operations :Oji Paper produces paper for printing, writing, and packaging...
, Pacific Coast Recycling, Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
is a Japanese bank based in Yurakucho, Chiyoda, Tokyo, Japan. It is a member of the Sumitomo Group and Mitsui Group. As of the year 2009, SMBC was the second largest bank in Japan in terms of assets.-History:...
, Taiheiyo Cement
Taiheiyo Cement
is a Japanese cement company, and is the biggest of its kind in Japan. It was formed in 1998 with the merger of Chichibu Onoda and Nihon Cement ....
, Toray Industries, Toshiba Corporation, Tri-net Logistics Management
Mitsui Group also has substantial interest in Vale and Caemi Mineração e Metalurgia
Caemi
Caemi Mineração e Metalurgia S.A. was a major Brazilian mining holding company that ceased to exist in December 2006 after it was merged into Vale. Caemi means Companhia Auxiliar de Empresas de Mineração.-Operations:...
, which owns 70% of Minerações Brasileiras Reunidas (MBR).
Mitsui Engineering and Shipbuilding Co. owns just over 50% of the shares in MODEC Inc.
MODEC Inc.
is a leading global supplier and operator of offshore floating platforms.The company has headquarters in Tokyo, Japan and regional offices in Angola, Australia, Brazil, Belgium, Ivory Coast, Indonesia, Mexico, Nigeria, Singapore, Thailand, USA and Vietnam. MODEC has around 2,000 employees.MODEC...
MOEX USA Corporation, the United States arm of MOECO, owns a 10% working interest in the Macondo oil and gas prospect
Macondo Prospect
The Macondo Prospect is an oil and gas prospect in the United States Exclusive Economic Zone of the Gulf of Mexico, off the coast of Louisiana...
in the Gulf of Mexico
Gulf of Mexico
The Gulf of Mexico is a partially landlocked ocean basin largely surrounded by the North American continent and the island of Cuba. It is bounded on the northeast, north and northwest by the Gulf Coast of the United States, on the southwest and south by Mexico, and on the southeast by Cuba. In...
. In April 2010 the semi-submersible drilling rig Deepwater Horizon
Deepwater Horizon
Deepwater Horizon was an ultra-deepwater, dynamically positioned, semi-submersible offshore oil drilling rig owned by Transocean. Built in 2001 in South Korea by Hyundai Heavy Industries, the rig was commissioned by R&B Falcon, which later became part of Transocean, registered in Majuro, Marshall...
, operated by BP Exploration and Production Inc.
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
, exploded and subsequently sank, resulting in the Deepwater Horizon oil spill
Deepwater Horizon oil spill
The Deepwater Horizon oil spill is an oil spill in the Gulf of Mexico which flowed unabated for three months in 2010, and continues to leak fresh oil. It is the largest accidental marine oil spill in the history of the petroleum industry...
.
Companies with close ties to the Mitsui Group
- SonySony, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
- Ito-YokadoIto-Yokadois a Japanese General Merchandise Store, part of Seven & I Holdings Co. There are 174 Ito-Yokado stores operating in Japan. The group has expanded to China, where they formed a joint venture with Wangfujing Department Store and China Huafu Trade & Development Group Corp. to open one of five stores...
- Sagami RailwaySagami RailwayThe , or , is a railway company operating three lines in Kanagawa Prefecture, Japan. It ranks among the "big 15" major railways in Japan.- Overview :Sagami Railway is one of the core companies of the Sotetsu group...
- Tokyo Broadcasting SystemTokyo Broadcasting System, TBS Holdings, Inc. or TBSHD, is a stockholding company in Tokyo, Japan. It is a parent company of a television network named and radio network named ....
- Kanebo
- Oriental Land