JPRS ID: 9568 JAPAN REPORT

• Document Type: CREST
• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000300080051-4
• Release Decision: RIF
• Original Classification: U
• Document Page Count: 54
• Document Creation Date: November 1, 2016
• Sequence Number: 51
• Content Type: REPORTS

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JPRS L/9568
24 February 1981 ~
Ja an Re ort
p p
cFOUO , 3is, ~
FBIS ~OREIGN BROADCAST INFORMATION SERVICE
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JPRS I,/9568
2 4 FF,bruary 19 81
JAPAN REPORT
(FOUO 13/81)
CONTENTS
MILITARY
Arms Export Criticized by ' DAII,Y YOI~IIURI t
(Editorial; DAILY YONIIURI, 12 Jan 81) .........e............ 1
Statement on Arms Deals Okays Installations
(DAILY YOMIURI, 28 Jan 81) 3
ECONOI~IIC
Big Businesses~ Strategies To S~u~vive 1981
(INDUSTftIA, Jan 81) 5
Energy Investment in Private Industry in 1979, 1980
(Yutaka Iijima; ENERUGI FORAM[J, Dec 80) .ll
Target Ra,ised for Saving Oil
( DAILY YOMIURI, 21~ Jan 81; MAIDTICHI ~AILY NEWS, 11~ Jan 81) 27
Up 20 Million Kiloliters
Iran, Traq War Feared
Comment on Electronic Equipment, Automobiles, Shippir.ig
(INDUSTRIA, Jan 81) 29
SCIENCE AND TECHNOZOGY
Genetic Engineering for Mass Production _
(INDUSTR.IA, Jan 81) 32
Interferon To Be Made in Quantity
(THE JAPAN TIMES, 31 Jan 81.) 3!~
_ Super-Schottky Iliode Made in Government Lab
(THE JAPAN ECONONIIC JOURNAI,, 20 Jan 8i) 35
Export Insurance S~rstem To Be Expanded
(THE JAPAN ECONOMIC JOURNAL, 20 Jan 81) 36
- a - [III - ASIA - 111 FOUO]
r~nn nnrni+. . � �rn.~ n~rT i~
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Beginnin of Solar Thermoelectric Generation Discussed
~Yukiko Okuma; ASAHI EVENING NEWS, 21 Jan 81) 38
Solar Heat~ers Said Zosing Populaxity
(DAILY YONIIURT, 25 Jan 81) L~0
Development Set for Icebreaking Tanker for Arctic Oil
- (DAII,Y YOMIURI, 2L~ Jan 81) 41
New Ships Will Use 50 Percent Less Fue1
(DAILY YO~MIURI, 2 Feb 81) 42
JNOC To Participate in Oil Shale Develop~r!ent
(THE JAPAN ECON(~2IC JOUftNAI~, 20 Jan 81) 43
IBM Topped in Domestic Sa,les by F`ujitsu
(Kiyoshi Otani; ~i'TiE JAPAN ECON(~'!IC JOURNAI,, 20 Jan 81)
Computer Makers Competing for Badge Contract
(MAINICHI DAILY NEWS, 28 Jan 81) 46
- I,atest High '~Tater Absorption Resin
(TECHNOCRAT, Nov 80) 47
Brief s
Heat Purnp Uses Sa1ax Heat ~9
New Paiilt for Oil Tanks ~9
Zegal Protection of Software Lt9
Captain System Test ~9
CNC Jig Grinding Machine 5~
Speclal Purpose ClJC Laser Machining K~
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MILITARY
ARMS EXPORT CRITICIZED BY 'DAILY YOMIURI'
Tokyo DAILY YOMIURI in English 12 .;an 81 p 2
[Editorial: "Danger of Arms Exports"]
[Text] Hotta Hagane Company, which exported what are
I believed to be gun barrels to South Korea, is being
inveatigated by the International Trade and Industrv
i ~Vlinistry (MITI) on suspicion af violating the govern-
ment's "three principles banning export of ar'ms."
~ Prime Minister Suzuk: in this respect has recon- .
~ firmed the government's stand of adhering to the
~ three principles. However, MITI's administrative
; guidance in this instance alone will not solve the
~ problem. The coming Diet session is most likely to
i
~ take up the issue of arms exports. Debate is also ex-
~ pected to stir up among the public.
Voices are growing in the governm~nt and business
i community calling for rela.xation or aboIition of re-
strictions on arms exports. The three principles,
~ worked out in 196? by the then prime minister Ei-
i saku Sato, ban arms expor~,s to communist nations,
~ countries to which arms sales have been banned un-
~ der a UN resolution and countries engaged in hostili-
I tiea or likely to be~ome involved in armed conflicts.
~ Former prime miniater Takeo Miki expanded the
i scope of these prnciples in 1976, thus totally banning
~ arms exports.
Those who advocate relaxation of the ban on arms
~ exports contend that (1) mass production of arms
will reduce production costs, resulting in reducina
the people's financial defense spending burden; (2)
lifting of the ban will facilitate growth of the
defense industry and strengthen the nation's self-
defense capability~; (3) arms exports can be used as
' a diplomatic means to ~naintain military balance in
crucial regions as well as ensure peace, and (4) arms
exports to the l~iideast oil-producing states are de-
cisive in ensuring stable oil ~upplies from them.
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~ Change In Govt Poiicy
The arg~zment calling for a turnaround in the gov-
ernment's arms exports policy must be flatly reject-
' ed. However, we find that some proposals seeking
relaxation of the rigid ban are not completely off
the mark. .
Nevertheless, when we reflect upon what is truly
beneficiat to Japan's national interest and what is
truly conducive to the world peace, we believe it is
more advisable for this country to continue to stick
to the present policy of banning . arms exports in
principle.
The basic reason for this stems from the ideal for
Japan as a state. Also, there is a national consensus
that Japan as a peace-loving country should never
become a military power and that it should contribute
to world peace not through military strength but
through good use of its economic power.
A change in the government's present arms ex-
ports policy would undermine this natian's ideals as
well as mar its image abroad of a peace-loving
country. �
lnvitation To War ;
?~rms exports bv such countries _as the L'S, Brit- ;
ain, Italy and the Soviet Uniori ~might have been '
originally meant to maintain a regional military
balance. But the Iran-Iraq war, for example,~ clearly
shows that those weapons actually induced wars
which would have otherwi3e been prevented. In addi-
tion, the .Iran-Iraq war has also dealt a severe blow .
to oil production and supplies. It is the industrially
advanced countries which now find themselves on
the other end of the barrel after having pravided the
Mideast countries with weapons in large amounts. -
Japan should appeal to the world to restrict ex-
ports of conventional weapons, taking advantage of
its ow-n policy of banning arms exports. This is not
just a sentimental argument but a rea:istic sugges-
tion based on Jspan's own national interest.
(December 12)
COPYRIGHT: DAILY YOMIURI 1981
CSO: 4120
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MIL ITARY
STATII~IENT ON ARMS DEALS OKAYS INSTALLATIONS
Tokyo DAILY YOMIURI in English 28 Jan 81 p 1
[Text] A cabinet meeting Tuesday approved a newly drafted "government view"
on Japan's weapons exports which authorizes Japanese companies to undertake
construction of military installations for foreign countries within the
bounds of the government's "three principles" on arms deals .
The government also re- Besides these three cate- panese compan;.es in pro-
affirmed its sta.nd that no g~e3, the Japanese C3overn-
restrictions should be im- ~ects to construct military
posed on export of those ~ent has oSicially been fol- installations for ioreign
"general purpose" industrial lowing the antiarms export }~~ps,
; products that could be Policy declared by the NIIki In case such projects
used eitt;er for military or ~b~et in 1976, to the effect should involve construction
nonmilitary purposes. that Japan, in line with the of structure directly reL~ted
The govemment statement sPirit o! the war-renouncing ~ production of weapons,
~ came in reply w writter_ ~~titution, should restrain no Jspanese flrms could be
questions that a Socialist irom exporting ~eapons to allowed to undertake the
any forelgn country. construction projects under
and a Komeito Dietmen ~esday's g o v e r n m e n t the three principles against
' jointly flled Fast week over statement in reply to the arms exports, according to
the recent disclosure of ex- op~sition Dietmen reiterat- the government.
ports of a large amount o! ed that the three principles Iuf'ilitary installations how-
semifinished artil;erv bar- concerning arms exports
~ reLs to South Kor~�.a by a ever, the statement said,
~ should be observed as be- also comprise such facillties
Japanese special st~el ex- fore.
' port iirm. as liospitals and boarding
As iar as the artillery bar- However, it said the three quarters of troops.
j principles should not be ap- It would be inadvisable to
; rel exports are concerned, lied to the so-called "gen-
the government's a~itten p � indiscriuiinately apply the
reply suggested that the eral purpose industrial three antiarms export prin-
Osaka-based export , firm, Products that could be used ciples to such construction
Hotta Hagane, should be for a wide range of pur- projects not directly related
interrogated bp the authori- poses, military and nonmili- ~ weapons, the statement
ties on suspicion of violating ~At the time of shipment said.
the three principles on arms of such products, it is tech- Rifle Exports Bared
exports. nically impossible to ascer- The written replies also
The three principles,
which was laid down in 196? tain whether they would be made public for the flrst
under the 8ato administra- used for military purposes time the amount of exports
tion, stipulate that Japan or not in the foreigu coun- irom Japan of swords, rifles
will never export weapons tries importing them, the and related weapons to ttie
or parts of weapons to (1> S~~~ent said. US. Canada and othercoun-
countries in the communist The written government tries not covered by th~
bloc, (2) regions with armed replies also have given three principles against
confiicts or those likely to "t~damental approval" to arms exports.
have such conSict and (31 possi5le pzrttcipation o! Ja- .
countries to which arms ex-
ports are banned by a UN
- resolntioa.
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A breakdown showed that
- during last year Japan ex-
ported 120,417 shotguns and
_ 117,007 rifies, all as "gene-
ral purpose" products and
not as militarY weapons�
Accarding W a reliable
government source, howsver,
the government had one
time allowed a gun maker
to export an unspeclSed
number of rifles of the kind
now being used by Japan's
self-defense forces to South
Korea under the name of
"rifles for hunting pur-
poses." �
COPYRIGHT: DAILY YOMIURI 1981
CSO: 4120 i
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ECONOMIC
BIG BUSINESSES' STRATEGIES TO S'7RVIVE 1981
Tokyo INDUSTRIA in English Jan 81 pp 8-16
[Text] ForJapanese businesses, 1981 will not be an easy year. Trade frictions
wilh other countries may int~nsify as exports increase. There is no
assurance that domestic demand will rise. The primary reasons are that
taxes. dtrect or indirect, will increase under the Government's policy
of reconstructing deficit-ridden state ~nances and that const~mer spend-
ing may stagnate in 1981.
Under these circumstances, enterprises continue frantic efforts to
- find what will sell and what they should sell. Their research efforts
tjurt began in the /atter half oj 1980 will intensify after the turn of the
year. Stractural reorganizations big businesses have been carrying out
since last year are good examples oj their efforts. So, we wil! introduce
here some of the "survival strategies" of Japanese enterprises. These
strategies would cover not only 1981 but also five to 10 years ahead.
New Organizations
Recently conspicuous is that enterprises are establishing development of human resources and training; three others
new organizations and new divisions. were expanding business with China and the Soviet Union;
Of the 952 enterprises listed on the First (Major) Section and another three were expanding patent divisions. The
of the Tokyo Stock Exchange, a total of 323 firms other 76 firms were reorganizing other fields.
announced plans for organizational reforms during the The largest number of firms - 84 in all and 26% of the
period from March 1 to October 31, 1980. This means that total - expanded the front line areas, such as marketing
one out of every three is engaged in organizatior,al r~form. and sales divisions. One out of every four firms was placing
Of the 323 firms, 84 expanded marketing or sales divi� emphasis on setling products.
sions; SS firms established or expanded research and The second largest was the expansion of research and
development divisions; 39 firms were trying to establish development divisions - 55 in all - 17~l0 of the total.
business bases overseas; 21 others were engaged in research Their interest lies in how cheaply they can make products
on the development of energy sources; 10 others were giving that sell well.
priority to marketing, survey and public relations; seven The third group aims at expanding overseas business.
others had plans to promote development of new materials However, this would involve "country risks" as seen in the
and new technologies; seven others were stepping up case of the Iraq�Iran war. That could cause trade frictions as
, controls on funds and materials; seven others intended to seen in exports of automobiles and electric appliances to
strengthen quality control of their products; six others were the United States and European Economic Community
increasiitg investments; five were placing emphasis on the nations. External business conditions facing Japan are
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rux urr~LtwL uJ~, uN~Y ~
growing increasingly harsh. To be sure, Japan is a trading Union, while other firms are expanding offices ha~ldling
country. "We will fully take local conditions into account legal affairs and patents.
in developing overseas markets." "We will cooperate in New Technological Development
the development of local industries." "We have established
= the overseas business headquarters ro stud~ conditions Asahi Chemical Indastry Co. created a"Functional
involved in overseas production." These are some of the Products Business Division" within the "Resin Business
- statements made by executives of leading manufacturers Headquarters" in Nay, 1980. A newly-developed DFR -
who are engaged in overseas business. It appears that the (photo-sensitive dry film resist) and hole element are two
executives now recognize the problems facing them. outstanding products handled by the new division. Both are
The fourth group is engaged in operations to develop electronic products - a kind of products the company had
new energy sources. Atorruc energy development and the never handled before.
development of coal liquefaction techniques are typical In the past Du Pont of the U.S. had daminated the
projects being tackled by the electric power, steel, World's DFR market. Because of its patent problem, no "
petroleum and general chemical industries. Big general other firms were able to produce the material. But Asahi _
trading houses are also organizing new groups for those Chemical has finally broken the barrier. It has already
development projects. They are really challenges to the new obtained a patent for its product in the United States.
age. Its mass production facilities are under construction at the
Shigetaka Ikeda, managing director of Mitsubishi Re- site of the Fuji Plant. The company plans to market the
search Institute Inc., has this to say: "When we work out product mainly on the domestic market. ;
business strategy, it nee~s to be a long-range or medium- Asahi Chemical is a mass energy consuming chemical ~
range strategy that wiil cover five or 10 years ahead. It manufacturer whose lines of products are centered on
also has to be a scrupulous one. It will be important to materials. Buc the company, in fact, aims at a general
' develop new products and new techniques. And we have chemical producer tuming out less energy consuming higher
particularly strong interest in projects to develop new valus-added products - mainly specialty chemicals and
energy sources and save energy." A good example of this electronic component products. The company has also
is the creation of the "Energy Administrative Division" by established a coal development department - a move to
Mitsui & Co. Until two years ago 1~Iitsui did not have launch full-scale research on coal liquefaction.
any solid divisian to deal with energy problems. And a A"break with oil" - discovery of major energy sources
~ new division was established in October, 1979, to pro- that can replace oil - is a national task for Japan. Even the
mote business related to energy - oil, coal, gas, atomic oii industry cannot stay away from the national effort to
energy and other new energy sources. This division, find substitute energy sources. (demitsu Kosan and Mitsu-
however, was replaced only in a year by the Energy bishi Oil have already embarked on projects to develop
Administrative Division, which was inaugurated on Octuber coal mines overseas to import their coal to Japan on a
l, 1980. The new division promotes and administrates all commercial basis. Nippon Oil, which had been reluctant to
- energyrelated projects from scratch to execution of busi- engage in business other than oil, has mapped out a plan
ness. Mitsui says this was merely an organizational change to import Australian coal under a development formula.
to carry out energy development projects more smoothly In July, 1980, Daikyo Oil inaugurated a"coal business
in the future. Behind this move, however, is obviously department." This indicates that coal has become a perma-
- the management's determination to defeat its arch rival, nent line of business for the company in contrast to the
Mits~tbishi Corp., to win the crown of the world's largest past when it was being studied by a single project team
trading flrm. alone. Daikyo officials said that energy sources other
Just as the development of new energy sources is a than oil would inevitably dominate future energy supplies
challenge to the new era, so is the establishment of a new and that the company, as an energy supplier, should handle
materials processing division by iVippon Mining Co. and coal and other energy sources. -
of an optical communications division by Nippon Electric ~o~] business would involve risks for oil refining com-
Co. panies. They buy oil only from oil producing countries or
Similarly, an increasing number of firms are establish- major oil companies. In the case of cual they would take
ing new departments to deal with China and the Soviet part in coal development projects which would often
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I Petroleum Department
Otganization Accuunting & Finence Depertrt+ent /
System Department ~~ar1~^~
Praurerr~nt Depertm~nt ~ I Research B~ Development Planning Departme
General AHairs Department Patent Oepartment
s 1 st Oevelopment Department
Futuro Plannmg DeDartment petrolwm D~v~sion I2nd Development Department
Building Matenals Oevelopmsnt Group Central Rsseorch Insutute
Education Industries Dewlopment Department Products Oevelopment Institute
Food Rssourees Osvsbpment Oepartment
~ ;:,~:~j~ ~ 1 . .
~ .
Administrotion ' Ressaroh
w Puturs � ~ 6 Development Chemicals
- Oiwwon Oivlsion & Plasncs
Devebpmsnt
Diws~a~ : - y~]6�. Division
Y -~~/Jw~Af/~
~ ~ ~~4,
' ` ~C20t5 VIG ~p~f?L ~
o�~
.!~~T .
~=-s'i;w,
, I Corpo?sl~ ~nning I Chemicals & Plasncs PI
& Conttd U' [vision Chem~cals & Plasncs T
I PoFcy Board ~ Strarog~c Plamm~g ONiq Chemicals Developmen
, Teehnoloqical Plannirl~~* Plastics & Fdm OevaloD
Plannmg Oepartment' & Control Office Sagamihara Admmistra
~ Pharmaceuticals Department I ; Plannmg & Control D~putment Plasncs Research Insnt
! Executive Chem~eals & Plast~cs S
Medicals OeDertment ~ Economic Research Oepertment
~ i Onectors Fdm Sales Department
; I Tei~in InsUtute (or Bio-Medical Research I Legal Department Auditing Oepartmant
' Councd Gitu Plant
Roving
~ Ambassador
I w1PR+"^'~ ~ ~';'Cti ~ ~ Group ~ ' ' .
~ ~ Secretary's
i Pu01it Relabons
' 6 Advertising Depsrtmen~
Med~cal & Dapartment
I PharmateuUCals F~bers Oiwsion
Dw~sion Construcnon 6 Personnef & �
~ Engmeenng Industnal Relauons
i
; Drvision Diws~on
~ I ~
I
i I �r
i Engineering Administranon Department Fibers Plamm~g Oepartment
New Busi~ess Development Department
I ~ Plannmg & Deveiopment Department ~ Fibers Technology Department
~ 1 st Engmeenng Department Production Technology Department
' I 2nd Engmeenng Department Overseas Drvision Textdes Technology Department
, ~ 3rd Engineenng Department Envvonmental Control Department
' , Engineermg Development Department Fiber Bus~ness Admin~stration Departmen~
~ Overseas Eng~neenng Oepartment Markeung Oepartment
i Power Engineenng Department I Co~ex Development Mission
~Instrumentanon $ Electnc Engmeenng Department Man�Made Leather Research Mission
i
~ Fiber & Textile Research Insntute
Parsonnel Department Oversees Administration Depertment ~ Filament Sales Department
i Europe OH+ce Staple P~bers Sales Departmen~
- Personnel Development Department
Indu5tnal Relauons Departmant I I 1st Ovorseas Operations Oepertment Woven Fabncs Sales Department
~ 2nd Ovsrseas Operanons D~partment Knmed Fabrics Sales Oepartment
~ fu~~ Instrtute of Educauon b Tra~n~ng
- j Tec~nology Export Oapartm~nt Intenors Sales Department
I Export Depertment Industnal Fibers Sales Department
I Import Department Tokyo Texnies Sales Department
~ Monte Proect Oepartment Hokunku Office 'Nagoya OHice
Ths edministntivs struaura of a ludiny t~xtil~ company,
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involve high risks. Efforts are expected to be made to achieve interdivisional
Why then did Daikyo establish a new coal business consensus through daily activities conducted on inter-
department? This is because some of the major corporate related matters.
oil consumers began switching their fuel from oil to coal.
Mitsubishi Chemical [ndustries established an atomic The long-range strategy is to strengthen the overall
energy department and a coal liquefaction and develop- competitiveness. But the aims for the immediate future are
ment department in August, 1980, and a life science depart- to raise earnings from overland machinery and give priority
ment in October. The atomic energy department aims at to rapidly-growing areas of business - more specifically,
effective use of its technologies and products in the ~eld of aircraft and space, plant construction and energy-related
atomic energy. A typical product is an ion exchange resin business.
developed with its own technology. It is said to have ] 0 Survival Stra4egies
times the absorption capaciry of titanium oxide to enrich
Kansai Paint's organization reform has tu~~ features.
uranium in sea water. The company is also engaged in joint
One is an expansion of the technology division. The other
research projects with the Shikoku Industrial Experiment is the establishment of a new department within the produc-
Station of the Ministry of [nternational Trade and Industry.
It has also invested in Japan Atomic Fuel Service, which tion division. The technology division will have eight new
divisions - technical research institute, automotive paint
is processing used nuclear tuel.
The coal liquefaction and development department is in ~echnology department, anti-corrosive marine paint tech-
charge of business conceming Nippon Brown Coal Lique- nology department, general�purpose paint technology
facdon Co. - a joint venture established in August, 1980, department, industrial paint technulogy department, PCM
by Kobe Steel, Mitsubishi Chemical, Nissho Iwai, Asia Oil p~t technolog}+ department, can paint technology depart-
and Idemitsu Kosan. The department will also take charge ment and paint engineering technology department. This
reform, of course, is aimed at expanding the research
of technological development, survey and planning to pre- system. And the area of responsibility to be assumed by
pare for a possible full-scale advance in this field. the research staff is clearly defined to conduct researc}~
The life science department will concentrate its effort more effectively.
on biotechnology, which will be taken by MITI in 1981 as
a project for technological innovation. The main subjects The production division set up a production technology
of research are bioreactor and the rearrangement of genes. department under its control. It was formerly a produc-
In 1977, Mitsubishi Chemical set up a life science research tion technology section. The new department is responsible
for studying productivity problems on the production line.
institute. It was the Cirst among Japanese enterprises to
enter research in life science. It also has a biochemical The emergence of synthetic resin after the end of the
World War II has led to a considerable advance in the
laboratory in its central research institute. The department
coordinates interdepartmental problems on related sub- painting industry. As a result, the thickness of painting has
been reduced from the unit of millimeter to that of micron.
jects, negotiates with other firms and organizations, and
works out business strategy. Behind the expansion of the technology division is the
[shikawajima-Harima Heavy Industries has also technical advance of the times.
taken an active posture, now that it has generally complet- Meanwhile, Hitachi Ltd. in 1980 inaugur:~ted four new
ed a"fat-trimming rationalization program" and has a back- business promotion divisions - for medical equipment,
log of orders for shipbuilding amounting to two years work, defense equipment technology, office automation and tiber
In July, 1980, it set up a new system under which the oPtical communications.
council of managing directors oversees eight business divi- As a result, the number of promotion divisions rose to
sions - the machinery, energy, plant construction, ship- The system of promotion division is a provisional
building-ocean development, aircraft and space, and over- setup. The divisions are placed directly under the president,
seas operation division as well as the domestic business but each of them dit~fers in nature. For example, the C}~ina
operation division and the export division. The new system CPT, China Paoshang and SNS Divisions handle big overseas
is much like the previous setup of business headquarters. Projects. [n contrast, the medual equipment business and
- But it is so designed as to promote interdivisional coordina- ~tfice automation divisions are a sort of coordinating
tion and consultations as well as personnel exchanges machinery designed to provide the direction for given
- between the head office and the divisional headquarters. ?ssues.
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The increase of the promotion divisions indicates the "It is often said that enterprises should trim their tat
existence of vanous problems that are beyond control in their organizations and then switch their management
under the "vertical" administrative system. The promotion posture from the defersive one to the offensive one.
division is a statf branch and small in scale - five or six The active organizational reform now going on among Japa-
staffers are assigned to each offce. nese businesses, along with a rise in the employmPnt of new
Nippon Kokan established new divisions engaged in university graduates, clearly shows a stuft in their manage-
shipbuLding planning and ocean development planning to ment posture. What is conspicuous in the development-
widen the company's capabilities of technological develop- oriented organizational reform is that the top manage-
~ ment. Shinagawa Refractories, the top manufacturer of inent's will is reflected in every level of business structure,
fire bricks in Japan, established production technology, starting from the very beginning of the reform to personnel
= materials and other new departments to prepare for the changes and specific actions."
export of plant and equipment as well as technology. Japan Even this kind of reform has two types, according to
Storage Battery established the business headquarters and him. One is a new development system to be placed directly
the research and development headquarters. Sekisui under the top management, separate from other organiza-
Chemical reorganized branch offices by products to be tions within the enterprise, The other type is based on con-
. handled by them with a view to achieving more efficient ventional activities and related to other organizations.
business operations. Thus "survival strategies" quite vary Research and development are something like groping
in different enterprises. for the new in a black box. Therefore, they would run high
Particularly unique is the establishment of a cultural risks and often end in failure. Gains from a successful
business department by Wacol, a leading manufacturer of development would be great, but there is no guarantee for
women's underwear. It consists of two business offices. One a success. "The reality of research and development is
will prepare the establishment of a"culture center." The something like taking over a chess game from someone
other is an "apparel research office." The compa,~y else. Chessmen have already been set on the board by the
hopes to open the culture center in November, 1984, predecessors over the 30 or 50 years. Tens of players may
when it marks the 35th anniversary of its founding. have already played the game which is still continuing,"
This is an expanded version of the original plan, which was ~aid Shunkichi Shirosaka, senior managing director in
~ designed to build an apparel museum. Whether e~terprises charge of technology at Matsushita Electric Industrial Co.
will succeed in survival strategies will probably be known He probably meant that a jump in the progress of tech-
before long. nology cannot exist without past achievements. Considering
Tsutomu Ohno, an economic critic, comments on the such jumps in research activity and the continuity of
issue as follows: research, what conditions would lead a given research pro-
"Recently many businesses are carrying out organiza- ject to a success ur failure becomes extremely important.
tional changes. The form of changes differs with firms. And success or failure depends largely on the integration
Some are heading for consolidation, while others are sub� of the ambivalent factors.
dividing their organizations. And common ro many i, the The point of organizational changes now taking place
effort to develop new areas of business. They are pursuing in many enterprises would be how deeply the problem of
research development. technological development, product 'vitegration is tak:o into consideration. It is up to the judg�
development, market development and the like. The pursuit ment of the top :,ianagement. Ir other words, it is where
of new areas of business is likely to be the initial trend in the quality of the aggressive management appears.
the 1980s.
,
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~ Research and Development Expenses
The researcn and development ex- manufacturers, with the exception of automobile and electric equipment ~
penses of 1,170 leading companies ~litsubishi Heavy [ndustries which sectors amcng top 10 of the U.S.
- for fiscal 1979 totaled ~1,531,400 ranks eighth. On the contrary, only They are General hlotors, Ford, IBM
million, up 15.7% over the previ� four companies are listed from the and General Electric.
ous year, but the ratio of these
expenses to aggregate sales dropped R&D Expenditures in FY1979
from 1.66% in fiscal 1978 to 1.64%, Ratio to Ratio to -
according to the survey of the Rank Company Amount Sales Rank Company Amount Sales
~Nihon Keizai Shimbun, the nation's (in ~1 bulion> t~o) (in ~i bill;on) (~o)
_ influencial economic daily. 1. Toyota hfotor 104.0 3.7 1 1. Fujitsu 30.5 6.1
Those 1,170 companies (con- 2. Hitachi 98.7 5.8 1?. Nippon Steel 27.0 1.0
- sisting of 1,015 manufacturers and 3. Nissan Motor 90.0 3.3 13. Toyo Kogyo 20.5 2.5
155 non-manufacturers) are among 4. Toshiba 69.0 4.8 14. Nippondenso ?0.5 ~#.5
all the companies, whose stocks are 5. Matsushita Electric 50.0 2.y 15. Takeda Chemical 20.1 4.8
listed on stock exchanges in Japan, 6. Nippon Electric 43.0 6.0 l6. Fuji Photo Film 18.8 6.0
on which the survey was conducted. 7. Mitsubishi Electric 43.0 4.0 17. lsuzu Motors 18.6 2.9 j
Banks, securities companies and 8. Mitsubishi Heary 18. Bridgestone Tire 18.0 4.] ~
insurance companies are excluded. Industries 38.' ''.8 19. Kobe Steel 17.7 1.7 ;
The research and development 9. Honda Motor 38.0 3.6 20. Tokyo Electric Power 15.2 0.7
expenses of Japanese enterprises are 10. Sony 32.8 7.0 Source: The Nihon Keizai Shimbun
small compared with that of the
United States. The survey conducted
by Business Week magazine suggests
that the aggregate expenses for
research and development of 723
leading Ame~ican companies in 1979
are 3.3 times as large as those oF
the said Japanese companies and the
ratio to sales of American companies
stands at 1.9%.
In Japan, top 10 companies, in
terms of the expense amount, are
- automakers and electric equipment
1 COPYRIGHT: Diamond Lead Co., Ltd. 1981
CSO: 4120
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ECONOMIC
ENERGY INVESTMENT IN PRIVATE INDUSTRY IN 1979, 1980
Tokyo ENERUGI FORAMU in Japanese Vol 26 No 312, Dec 80 pp 117-122
[Article by Yutaka Ii~ima, member of the Survey Section, Japan Developmental Bank]
[Text] The Actual State of Energy-Saving and Energy Source Conversion Investments
, in Private Industry
I
Expansion Is the Keynote of Energy Countermeasure Investments
The second oil shock, which began with the Iranian revolution, set in motion the
wheels of energy countermeasure activities by private industry. The reaction of
private industry was to take a step forward from engaging in less costly counter-
; measures, and it has been moving vigorously in an unprecedented manner by apply-
~ ing energy-savin~ countermeasures centered on investments in slightly larger
facilities, by converting energy sources, and by other activities. In order to
grasp the actual 'situation with regard to the energy countermeasures of this seg-
ment of private industry, and in particular to understand the general trend in
investments for energy countermeasure facilities, the Japan Developmental Bank
j ha.s conducted comprehensive surveys on energy-saving and energy source conversion
investments during JFY 1979 and JFY 1980 by obtaining responses from 961 co~
' panies (each with more than 1 billion yen capitalization). This article presents
the recent trends of investments for energy countermeasure faci7.ities, based on
~ results obtained by this survey.
_I
Investments for Energy Countermeasure Facilities Increasing Rapidly
Investments for energy countermeasure facilities for energy-saving and energy
source conversion purposes have increased rapidly, as w3.tness the program in JFY
1980 to spend 701.6 billion yen, which is a 58-percent increase over_ the perfor-
mance for JFY 1979. This increase substantially surpassed the growth rate of
23 percent in private industry's overall investments on facilities. With the
rapid increase in the ceramics/earthenware, chemical, transportation machine, and
other industries, the manufacturing industries' [investments] increased in JFY
1980 by 450.2 billion yen; this was a little more than twice the increase for
JFY 1979.
On the other hand, nonmanufacturing industries, because of a decline in aero-
nautics, which normally evokes an image of investments to augment its capacity,
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were limited to a 10.1-percent increase over the previous fiscal year. With
aeronautics excluded, however, the rate of increase was 1.8 times that of the
previous fiscal year. Thus, as with manufacturing industries, a large increase
was experienced in nonmanufacturing industries. (See Table 1}
T.able 1. Percentage Increase of Investments for Energy Countermeasure Facilities,
by Industry Classification
~E-1 ~~R3~Jx#A.*-M9~i~it~t~fRtf~
c~az : oa~~ (15 ) <
te~
(1 ~ s~ 14~ ~~�fs. ~ (17)
2 ~ ~JE ` d,~a , i is~. ~ Y~4a
~ ~ ~ ~1[ll.~~~......~nc.
3 1~ ~I C~~i3~) 3.065 5,965 198.5
~ 4) ~ ~ z.~~~ aso2 ~m.s ~~~ta~.
_ 5 ~"c i~'[ ~ 2, 278 ~ 2, 514 110. 3 I ~ 1$"
6~ ~E CE~Irii~~ 833 ; 1.463 175.6
~,/~7 ~-~~E......~~~(
"i 1 ~,1 ~ ~ 1. 648 i 683 22:i. 4 I jJ � il ~ \ ~ 9~
bQ 2 8L 392 ' 662 168. S
) ~~~;~c~=~,~~-~-
sr~ ~ i, oss iaa. o
~ � ~J~. ~b ( \
~~~i~[~~~i=fi~V~-~1 ~,818i 1~615 88.6 ~~~~d ~t-t' \201 -
) 3~3 ~ 565 151.1 ( x
Key:
1. Industries
2. All industries
3. All industries (excluding aeronautics)
4. Manufacturing industries
5. Nonmanufacturing industries
6. Nonmanufacturing industries (excluding aeronautics)
7. Materials type industries
8. Process~ng/assembly type industries .
9. Energy industries
10. Nonmanufacturing industries (excluding energy industries)
11. Nonmanufacturing industries (excluding energy and aeronautics)
12. JFY 1979
- 13. JFY 1980
14. Percentage increase, 1980 over 1979
15. Unit value : 100 million yen
16. Addendum to Table 1
17. Materials type industries...textiles, paper/pulp, chemicals, ceramics/
- earthenware, steel, and nonferrous ore [probably meaning nonferrous
metals]
18. Processi*ig/assembly type industries...foodstuffs, general machinery,
electrical machinery, transportation machines, and other manufacturing ~
industries
19. Energy industries..,petroleum and electric/gas
20. Nonmanufacturing industries (excluding energy)...building/construction,
wholesale/retail, real estate, transportation/communication, services,
and other nonmanufacturing industries.
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It is worthy of note that the survey results indicate tha.t 15 of the 19 indus~
tries had a high percentage of increase in investments for energy countermeasure
facilities. ~
Percentage of Increasing Investments for Energy Countermeasure Facilities
On reviewing the percentages of investments for energy countermeasure facilities
as against overall investments for facilities, as shown in Table 2, industries in
general increased 7.3 percent in JFY 1979 and 9.4 percent in JFY 1980--an increase
[in the latter period] of more than 2 percentage points. _
Table 2. Percentage Increase of Investments for Energy Countermeasure Facilities
as Compared With Overall Increase in Investments for Facilities
~-z ~sea~~~e~~n~=~w~-~t~e~o~t~r c*~z : otr~~ ~ ~ 3 )
~a~~=
~(1 ~:~ue~~ ~~c~~ ~ ~~a~~,~! 1 ~
� -T.--r-
` 2 ~t ~E ; sa eo. a~ ioo. o o% i. s. 4X
i 55 ~ 74. 806 100. 0 9. 4` 7. 7 I 2 8 ~ 4. 9 1. 7
~~~~t S4 I 29. 991 100. 0 T. 2~ 6. 8 3.1 3. 7~ 0. 4
' ! 55 ~ 36.706 100.0 12.3 ~ 10.3 ! 5.1 j 5.2 i 2.0
~ 4~ ~ ~E i 54 ' 30. 654 100. 0 7. 4~ 7.1 0. 3~ 6. 8 I 0. 3
j 55 38,100 100. 0 6. 6, 5. 2 ~ 0. 5 4. 6 I 1. 4
aK~'1~[~ (~.~t~) 54 28, 387 100.0 3.0 ! 2. 6' 0.3 ~ 2. 3~ 0.4
~ ~ 5~ `a5 35, 760 100. 0 4.1 2. 6 0. 6 I 2. 0 1. S
Ij Key:
' 1. Industries
2. All industries
3. Manufacturing industries
4. N~nmanufacturing industries
I 5. Nonmanufacturing industries (excluding aeronautics)
; 6. JFY 54=1979 55=1980
! 7. Total amount of investments for facilities
~ 8. Total amount of investments for energy countermeasure facilities
~ 9. Energy-saving investments
' 10. Energy-saving investments as primary objective
11. Energy-saving investments as secondary objective
' 12. Investments for energy source conversion
13. Unit value: 100 million yen
Whereas the percentage of energy-saving investments as a secondary objective
dropped because of the decline ;.ci aeronautics, energy-saving investments as a
primary objective, because of the rise in such industries as ceramics/earthenware,
textiles, chemicals, and steel, and energy source conversion investments, because
of the rise in such industries as ceramics/earthenware, electric power, and chem-
icals, have both expanded.
From here on, signs of full-scale investments for energy countermeasure facili-
ties can be discerned. It is to be noted that investment percentages of the
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manufacturing industries in particular have increased from 'i.2. percent to 12.3
percent, or more than 5 points, and in all cases there have been increases in
investments for energq coun~ermeasure facilities.
Percentages of Energy Countermeasure Investments for High Energy Consumption and
Materials Type Industries
A review of the listing of percentages of energy counterm~asure investments re-
veals that the following five manufacturing industries exceeded 100 percent of
investments: ceramics/earthenware, textiles, steel, paper/pulp, atid chemicals.
Ceramics/earthenware, leader of the manufacturing industries, has converted to
the NSP kiln, converted to usage of coal, etc., and 44 percent of its total in-
vestment is utilized for energy countermeasure facilities.
The textile industry, along with rationalized investments and raw material con-
version investments for the purpose of saving energy, has converted to coal inde-
pendently, resulting in a high investment of 24.6 percent. The steel industry,
along with construction to recover the exhaust heat, exhaus t pressure, and ex-
haust gas from blast furnaces, coke furnaces, etc., has made inve~tments to ra-
tionali~e the process of continuous casting, etc., resulting in an investment of ~
22.3 percent. The paper/pulp industry, besides strengthening construction and i
other facilities to recover "black liquid," has reorganized processing to reach ~
an investment of 3.1 percent. The chemical industry, in ad dition to accumulating ,
small-scale investments on such enterprises as the recovery of exhaust heat from
ethylene plants and other facilities, has installed new fac ilities for petro-
- chemical derivatives, etc., and tbese have boosted the investments for energy
countermeasure facilities. (See Table 3)
Table 3. Percentages of Investments for Energy Countermeas ure Facilities
~-3 =~ti~-s~ae~~~~e~~~:~:y
c~~~~ ( ~ } c?n~ ~ �o ~ ( 2
~3) ~ ~ ~r.~ (1~~ ~ _
?~4~_ ~ .I ~~19
- (6 ~ ~ ~ ~ ~20~; ~
7 6. 3 I~ ~ ~
~8 ~ ~ ~ ~ ~ 9 4.~ , ~ (23) ~~2~.~
~ ~ p ~ a r~ � ~~~24~. i
's; 5~
(12 . ~ 1359i~ ~26 :s
(14 : C -
, .ti~~~~.~4i~~~~28~
( ~ 6 ~ ~ ~e ~ ~ z_~---- ~ 34
~a~x~~a~~31)
~32')~ icf~ ,-r . x~40 b .
~33 ) , t.. ~ ~ , .
41 ~ ~3
~ 3.5 ) ~ ~ 34~~ ' 43 ~~~'4~~ . ~
~ ~~7) . ~3~'~; J~ (45) ~44
~39) ~~38~', (47) .~46
[Key on following page]
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Key:
1. Manufacturing industries 25. Chemicals
2. Unit value: percentage 26. Nonferrous metals
3. 3FY 1979 27. Petroleum
4. Types of Industries 28. Others
5. Investment percentage 29. Transportation machines
6. Average of manufacturing 30. Foodstuffs
industries 31. Nonmanufacturing industries
7. Textile 32. Average of nonmanufacturing indus-
8. Ceramics/earthenware tries
9. Nonferrous metals 33. Aeronautics
10. Steel 34. Others
11. Foodstuffs 35. Shipping
12. Paper/pulp 36. Wholesale/retail
13. Chemical 37. ~as
14. Petroleum 38. Building/construction
15. Transportation machines 39. Electrical power
; 16. Electrical machinery 40. Average of nonmanufacturing indus-
i 17. JFY 1980 tries
~ 18. Types of industries 41. Aeronautics
' 19. Investment percentage 42. Others
20. Average of manufacturing 43. Shipping
~ industries 44. Wholesale/retail
i 21. Ceramics/earthenware 45. Gas
! 22. Textiles 46. Building/construction
; 23. Steel 47. Electric power
i 24. Paper/pulp
~
On reviewing the listing by industry classification on the amount of investments
~ for energy countermeasure facilities, the manufacturing industries that rank high
i are ceramics/earthenware, steel, chemicals, and paper/pulp, but the transportation
_I ma.chines industry, which is centered on the automobile, has gained part of the
~ prominence.
On the other hand, of *.he nonmanufacturing industries, high on the list are the
aeronautics industry, which has added a part of the imported large-size aircraft
; materials; the electric power industry, which has carried out fuel conversion
, with the already established thermal facilities; and the shipping industry, which
has converted and equipped its principal machines.
Wholesale/retail, building/construction, real estate, and services, hitherto un-
qualified to make the listing, have engaged in various energy countermeasures,
and the fact that part of these activities are tied in with investments for
facilities bears watching. (See Figure 1)
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~~.t 1 54~55~�l~~~189s~/~*-~1litftf~Stk~lb .
~.-i ~961#f � 2*~-~)
~1 ~-R1!~
~tt x rr ~ _.~~,~~-~~~naIIx (1 )
~o
$E@9�)'tY=~l~~-1if[ C2,
35
30 21.6 C7 ~~9�1*=~1L$-1f~~'7 ~
i
I.6
25 ~~~6~ f~ ~M~IA9x~.~~*-R1~LQi~t~i[tt~ ~A `
I~1Rt~1St9tIRqltt `t f ~
Zo =
~~r~~e~~~18)
IS 13.1 '6.0 p ~ ~ y~ 9_7
2.2 1t CJ 21.3 1.9 ( 1 A ~ 55
10 5_3 8.7 ~ 1 , ~ 6_3 ~tti~t~ 5 ~ ~ / ~ ~
d; 9 2.6 ~_9 lA3.d 17.8 ~ ~ '
I. ~ 10.3 10.0 3.5 ~ .
5 3
' (16 )
s
~ 55 Z tlbt ~ ~C'Q ~ ~I 55 ~ i3~1$ti1~i~R ~
~ ~ c~ ~ ~ .z 24 ~+aec ~27 w ~c ~t 28 ~
s~ ~
~ . 37
~4[ bl 3.4 6 3_7 2-'~
5 ~3~ ~.0 3 ) 3o.s
6.7 1~ 0.2 ~1R~t ~
10 ~ ,t.5 1 {v~}~q '
I1.1 J Z~.~ ~~41) ~
15 ~-t~9~~16.3 10.6 4~34) 11.3 i
1
10 16.! 2.5 11.~ i
i.-i ~.a i.-e
z.-z
Figure 1. Trend of Investments for Energy Countermeasure Facilities for JFY 1979
and JFY 1980, by Industries (Pro~ects of 961 companies used as basis)
Key:
1. Investments for Energy Source Conversion
2. Energy-Saving Investments as Secondary Objective
3. Energy-Saving Investments as Pri.mary Objective
4. Percentage of Investments for Energy Countermeasure Facilities by
Industry Classification -
Ratio in Relation to Total Investment for Facilities
5. Percentage of Energy Countermeasure Investments
6. Textile
7. Ceramics/earthenware
8. Chemicals
9. Petroleum
10. Steel
11. Nonferrous metals
12. Electrical machinery
13. Transportation machines
14. Building/construction
15. Transportation/communication
16. Wholesale/retail
17. Electric power
18. Other nonmanufacturing industries
[Key continued on following page]
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19. JFY 1980 30. Chemicals _
20. Foodstuffs 31. Petroleum
21. Paper/pulp 32. Ceramics/earthenware ~
22. Manufacturing industries 33. Steel
23. General machinery 34. Nonferrous metals
24. General machinery 35. Electrical machinery
25. Other manufacturing industries 36. Transportation machines
26. Nonmanufact~iring industries 37. Wholesale/retail
27. Gas 38. Building/construction
28. Ratio in relation to total 39. Transportation/communication
investment for facilities 40. Electric power
29. Textile 41. Other nonmanufacturing industries
42. JFY 1979
' Energy-Saving Investments as Primary Ob~ective for Full-Scale Conversion in All
i Industries
i
The following is a review of the trend of investments for facilities according
to the investment objective classification.
~
On energy-saving investments as a primary ob~ective, as shown in Table 4, the
amount of 207.7 billion yen for all industries in JFY 1980 is truly an increase
of more than twice the performance in JFY 1979. Following this, the percentage
of total investments for facilities rose from 1.7 percent to 2.8 percent. The
energy-saving countermeasures which coped with the rise in energy costs that oc- _
curred one after another, following the oil shock, changed over from less costly
measures in improving ma.nagement and operations to a gradual improvement and
renovation of machinery and tools, facilities, and processes. Fulfillment of
these activities is evidence of full-scale growth.
~ In reviewing the growth of investments in JFY 1980 as compared with the previous
fiscal year, whereas the materials type industries were limited to less than a
twofold increase, nonmanufacturing industries, excluding the energy industries,
increased 3.3 times and the processing/assembly industries 2.6 times.
~ Heretofore ener savin investments were a lied rinci all in the ener
~ gY- g PP P P Y gY-
i producing and materials type industries, but from the results of this survey, one
j can discern that the various processing/assembly industries, as well as the non-
~ manufacturing industries of building/construction, wholesale/retail, real estate,
' etc., which hitherto did not command attention, are now on a full-scale level.
This is a manifestation of the expansion of energy-saving investments in all in-
dustries.
As for industries with a high percentage increase, the manufacturing industries
include ceramics/earthenware with a rapid increase in conversion to the NSP kiln;
mi.nor manufacturing industries that utilize dry-method firefighting facilities
and engage in ooiler remodeling; paper/pulp industries that have augmented con-
struction of "black liquid" recovery apparatus, etc.; transportation machine in-
dustries that have shifted over to energy-saving furnaces and pushed for the
improvement of painting processes, etc.; general machinery where there has been
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Table 4. Percentage Increase of Energy-Saving Investments as a Primary Objective,
by Industries
iH it~At~Bl49~x~w~K-~tit1~~K
� c=- ~~~+FF3)._-
5 I
~ 5}~ ~ ioz, a~ zo~, ~oz zoi. 9%
6~ ~ ~a. ~ ias. sao i9s. i
~ ~ 7~ s. s~e zo, e~z zaa. a
~~I ~~E 79, 009 254, 595 195. 7 _
8, 867 23. 401 263. 9
9. 633 12~ 053 125.1
C~1 ~
`~~_s. aa~ _a~o. s
Key:
_ 1. Unit Value: 1 million yen
2. JFY 1979
3. JFY 1980
4. 1980 Increase Over 1979 ~
S. All industries ~
6. Manufacturing industries ~
7. Nonmanufacturing indus tries
8. Materials type industries
9. Processing/assembly type industries
10. Energy industries
11. Nonmanufacturing indus tries
(excluding energy industries)
a rapid increase in construction of facilities to recover exhaust heat from the
cupolas; and foodstuff industries that have full-scale operations to recover
exhaust heat.
Nonmanufacturing industries include wholesale/retail with a rapid increase in
electricity-saving countermeasure projacts; minor nonmanufacturing industries ;
engaged in saving energy aboard fishing craft and remodeling boilers for mining
work; the gas industry with a substantial combustion management program; shipping
with its conversion and equipping of the principal machines; and services that
have begun to complete elecCricity-saving countermeasures.
Energy-Saving Projects About To Become Large in Size
Energy-saving projects will form the majority by upgrading the efficiency of ma-
chinery, equipment and facilities, by effectively utilizing exhaust heat and
insulating heat, and by upgrading the efficiency of the revised section of the
process, etc. The bulk of them will be small and medium investments.
For this reason, with the excep tion of the NSP kiln in the cement industry and
the various types of exhaust heat and pressure recovery projects in the steel
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industry, the amount of money to be expended per pro~ect is not necessarily
large; yet it is to be noted that the number of recorded pro3ects exceeding the
cost of 100 million yen per pro~ect is comparatively great.
Populaxizing the Use of Microcomputers in Energy Savings
Among the specific projects employed by private industry, the largest number deal
with renovation and improvement of furnaces and the heat-transfer related equip-
ment using exhaust heat for preheating. Among the others, a distinctive example
is the widely practiced use of computers for combustion management, processing -
management, and electric power management. Moreover, the recovery and use of
heat have greatly progressed, but full-scale countermeasures to save electricity
have just begun to be instituted in many industries.
Firmly Established Energy-Saving Investments as Primary Objective
A review of the energy-saving investment plans of various private enterprises
over the next several years shows that the ma~ority of private industries are -
scheduling an increase in investments. Noted as moves by some of them, in antici-
vation of sudden ~vmps in the cost of energy, are pro~ects for =ecovery that would
somewhat require a long-range program. (See Table 5)
Table 5. Outline of Energy-Saving Investments, b3� Types of Projects (Specific
pro~ects assumed by 332 companies)
~ Ii~~Hts~A.*-~~1~ (~4ft~4I~/~*teR~2~tS}>
~ic~~ ~ S ~ ~ ~j 1f~16~~~~ss~~ ~
~ ~ ~
~ 2~ i. iR34 � 8 ~4 ~ 3iE g)~ iis i~z ~a, ao9
1 Q 28 37 19.798 6,921 12,877
q~} 7 14? 209 54,207 19.279 34.928
( 3\ 2~ a t 7C 9, 22 56 84 48~ 400 8. 820 39. 58~
_ ~p iz is z,a~a ioo z.~s
68 � 100 50,898 8,920 41.978
3~F~4~~! ~4 37 13~t ~ 178 37, 947 11, 428 519
_ ~ 4) ~3~ 9 io ~o uz ~as
* ~ tt ~ ~ ia~ I ies ~e, ~ ii, s~o z~. ~s~
~ 5~~' ~d~ 21 ~a 3~ 528 1.405 2.1~
~ 0 0 0 0 0
~ tt ~ ~ a~ ~s s, saa aos a, ~z~
6) 5. t/. 9~ 4 4 5 I 126 97 29
~ " x~ 10 10 2, 925 97 2. 828
~,~c~~ 10
S tt 11 ia is ~ s,osi isa z,as~
C'T, 6. A~ 9~ 26 70 92 14, 668 5, 015 9, 653
~~4.~c~lE 10 ie 2i a, aeo i, osa i, aas
$ f1' ~ ~ 86 113 17,148 6,049 11,099
( 8, 1. ^-6. I 271 i 566 ~ 139, 078 I 39.123 I 99. 955
61 ~ 94 28,691 8,394 ~ 20,297
t I 332 I 650 167,769 47,5t7 ! 120,252
- (2 ~ z ~a ~ -~~3,
~ ~ ~to. ~~t~[S~~~L-c~3.
[Key on following page]
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Key:
1. Types of Projects
2. Upgrading efficiency of machinery, equipment, and facilities
3. Upgrading efficiency of processing
4. Projects for effective utilization of exhaust heat and heat insulaCion
5. Effective utilization of waste materials -
6. Upgrading efficiency through spstemization _
7. Others
8. Total (2 through 7)
9. Manufacturing industries
10. Nonmanufacturing industries
11. Total
12. Number by industries
13. (subdivision)
14. Number of companies
15. Number of projects
16. Amount (in million yen)
17. Total
18. JFY 1979
19. JFY 1980
20. Remarks 1. The above table is based on figures of specific projects i
furnished by the companies.
21. 2. Overlapping has been avoided when counting totals for companies. ,
Energy-Saving Investments Showing Total Spectrum
Scope of Energy-Saving Investments as Secondary Ob~ective Which Had Been Vague
Next will come a description of energy-saving investments as a secondary objec-
tive.
Energy-saving investments as a secondary objective, coupled with energy-saving
investments as a primary objective, can be considered to constitute Japan's
entire energy-saving investments. Heretofore, however, there were various theo-
ries on the scope of energy-saving investments as a secondary objective, and it
can be said that explanations were not entirely clear. For this reason, the
percentage of energy-saving investments in Japan's overall investments for fa-
cilities was subject to various theories, from a high of 30 percent to about 4 or
5 percent.
During this survey, the various industries were asked to denote energy-saving
investments as a secondary objective, based on their decisions.
Energy-Saving Investments as Secondary Ob~ective Are Increasing Ra.pidly in Manu-
facturing Industries
According to the results of the survey, energy-saving investments as a secondary
objective for all industries in JF'Y 1980 was 367.5 billion yen, a 15.2-percent -
incr~ase over the figure for JFY 1979. A comparison of manufacturing versus non-
manufacturing industries shows that whereas the total for manufacturing indus-
tries was 191.4 billion yen, or an increase of 74.5 percent over that in JFY 1979,
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for nonmanufacturing industries there was a decline of 15.8 percent when com-
pared with the total for the previous year.
Within the manufacturing industries, the rapid increase occurred in the materials -
t~pe industries. These increases were high, as witness continuous casting in the
steel industry, with a 2.8-fold increase over the previous fiscal year; kiln re-
modeling in the ceramics/earthenware industry, with a 2.2-fold increase, and
newly installed facilities for petrochemical derivatives in the chemical industry,
with a 2.2-fold increase. On the other hand, processing/assembly type industries
_ had a 30.1-percent i.ncrease over the previous fiscal year. Of all the industries
in this category, an increase was observed only in the transportation machine
industry, centered on the automobile industry, which is remodeling and newly es-
tablishing assembly lines.
The energy industry, centering on the petroleum industry with its remodeled re-
former and the electrical power industry with its improvement (boosters) of power
transmission facilities, had a 17.5-percent increase over the previous fiscal
year.
As for nonmanufacturing industries excluding the energy industry, whereas there
have b een increases in the building/construction industry, with its newly in-
stalled facilities to manufacture prefabricated homes, the wholesale/retailing
industry, with its remodeling of existing stores, and the nonmanufacturing indus-
try related to the building of fishing crafts, there has been a decline in the
transportation/co~unication category--as witness the decline of rolling stock
purchases in the railroad industry, the lack of income for the construction of
new boats in the maritime transportation industry, and the decline in the pur-
chase of large aircraft materials in the aeronautics industry.
Thus, in the trend of energy-saving investments as a secondary objective and the
trend of energy-saving investments as a primary ob~ective, noncoordination can be
recognized, but this same tendency can also be seen in the manufacturing indus-
tries.
_ Percentages for Energy-Saving Investments Are 7 Percent for All Industries and
~ 10 Percent for the Manufacturing Industries
In most cases, the bulk of investments for new facilities have a built-in sort
of energy-saving effect. For this reason, according to the judgment of private `
industry, energy-saving investments as a secondary objective, as described previ-
ously, are recognized as heing applied on a wide scale, but on reviewing the
contents of this survey, with regard to energy-saving investments as a secondary
ob~ective, except for the anomaly of importing aircraft materials as a primary
objective to strengthen capacity, all of the energy-saving effects will be recog-
nized as conspicuous investments.
As a result, the percentages of energy-saving investments, combining the primary
and secondary objectives of Japan's overall investments for facilities, as de-
scribed in Table 2, are about 7 percent for all industries in JFY 1980, and more
than 10 percent for the manufacturing industries.
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This is to say that light has been shed on the total picture of what hitherto _
was considered uncivilized energy-saving investments.
progress in Energy Source Conversion
Because of the sudden and repeated price ~umps in oil costs, the increases in
electric rates, the positively encouraging measures 3.nvolved in energy source
conversion, the maintenance of promotional measures, etc., the conversion of
coal, LNG, and so forth as energy substitutes has recently progressed at a fast
pace. This survey shows that investments for energy source conversion in JF'Y
1980 was 126.4 billion yen--a rapid increase of 5.4-fold compared with the 23.2
billion yen which was the actual performance in JFY 1980 [as published].
On reviewing the percentage increase for JFY 1980 when compared with that for
the previous fiscal year, the energy industry, centering on the electric power
inciustry, which began the full-scale task of energy source conversion with exist-
ing thermal facilities, had a 9.5-fold increase. As for the materials type in-
dus~tries, the cement industry, which centered on coal conversion, increased 5.8-
fold; the processing/assembly industry, based principally on fuel conversion of
the automobile, and nonmanufacturing industries excluding the energy industry,
centered on the shipping industry with its installation of AC blenders, each had '
a more than twofold increase. (See Table 6)
~
Table 6. Percentage Increases of Investments for Energy Source Conversion by
Industries
~E-6 ~~Ix%RA# ~i~~l:~R4Mtf~
~ (1~~'t ~ �iTF3)
C~~ ~~Y~
5)~ ~E x;, 20~ izs, a~ saa. 9%
6~~c ~F is, i3s ~i,s~ sas. o _
~~'~t~ ~j 10, 067 ~ 54, 439 540. 8
11, 786 68, 729 583.1
na=~~~~~ g),~ Z,sr~ z~z.s
- _ ~ a~ - ~ 14,~os ~az, c~ 9as. s
~ ~~IE s, ~ ~2, ist zis. s
/LAr_~ _ _ -
Key:
1. Unit value: 1 million yen 7. Nonmanufacturing industries
2. JF'Y 1979 8. Materials type industries
3. JFY 1980 9. Processing/assembly type industries
4. 1980 increase over 1979 10. Energy industries
5. All industries 11. Nonmanufacturing industries
6. Manufacturing industries (excluding energy industry)
As for the percentage of investments for energy source conversion versus overall
investments, there has been an increase from 0.4 percent in JFY 1979 to 1.7 per-
cent in JFY 1980.
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As for classification by industry, in the manufacturing industries the percentage
is highest with the ceramics/earthenware, textile, chemical, and paper/pulp indus-
tries which are grouped in coal conversion. As for nonmanufacturing industries,
the percentage is high with the gas industry, which will convert its raw mate-
rigls, with the shipping industry, which plans to use a mixture of various fuels,
and with the electric power industry, which plans both coal and LNG conversions.
Diverse Energy Source Conversions
_ A diversity in the contents of energy source conversions of 88 firms was noted in
their investment descriptions. As shown on Table 7, more than 30 types of conver-
sions were described.
- Table 7. Types of Investments for Energy Source Conversion (Specific examples)
#-T s*w*-~~~'~o~ (~1ik~p
(1 ) -
- ~ t~ 6 ~ ~ ~ c-rs~~>
+~I~I, ~r ~c
~7 ~1 ~ ~ ~ ~ ~ ~(~D~ ~ ~ ~ t ~~2~4'l~a, t s ~ ~ .
~c(,,~ ~ ) ~ ~ 3~ ir~~,~~~~ ~ ~ ~ ~~r~~~
I ~ct ~ ~T ~
i i
(15 s~ � ~ ~~t� ~Ky ~ ~~~(17 )
-~~~i ~-~~i~~ i
+~18 ~ ~ - ~ ~,'t~}z j ~uw 20 )
~7'~ ~ 7 I ~c~.
� ~ _ o . M- ~25 )
I z?
~ H ~ ~~a. ~~~1 71 ~
(3 ~ ~ ~ 1 I 1~
( 1*~~~ ~ ~~.d 33 )
~ ~ ~~o, a~ /
/ '~~G~
` P (~~NG ~i~. ~~fl~'~ 8$9. p6rPo\ 43 ~
' ) 44 )
~7 ~ f ? ~ 2~~ ~ i~ ~~~o ( 45 )
~4 : ~ ir~a~~. ( 47 )
( 4 ~7 ~ s ~ ~ 5 ~ )
~ 2~ ~ ~ ) ~~3~
~7~I~' 7 i~~~~p~56)
,
� * ~ 59 )
I ~~~r !60~) y
~l ~
I-~~ ~ ~ 1 r~:~r~~~,~( 62 ~ -
~r ~.I f~~r z i
~4 ~ ~ 2 i 64 )
' - - ~ 7- ~ 28 ~ ~
1 ~ ' `
4'' 1~ I C~r"` I gt(11 ~ C nlVt i 1 I~~~r~ I~~ni~ 65
- ~7 ~ ~ ? ~ ~ ' -~~~~~f~~.
I'( ~~b ~ ~k L~~ 6 ) ~ ~3
} u~w~f 20
[Key on follow- I _ I ~ " ( ~ 6~ ~
ing page] I 1~ -
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h'UK UH'H'1(,'lAL USN: UNLY
Key:
1. Conversion Items 39. LNG ker~sene
2. Before conversion 40. Industrial products from organic
- 3. After conversion chemistry
- 4. Concretely documented examples 41. LPG
5. Number of cases 42. LNG
6. Industries involved 43. Fetroleum, electri.cal machinery
(subclassifications) and equipment, and components
- 7. Petroleum 44. Glass
8. Coal 45. Medical and pharmaceutical
9. Textile, paper/pulp, industrial products
products from organic chemistry, 46. Naphtha
cement 47. ChEmical fertilizer and gas
10. Ordinary steel and electric power 48. Propane
11. Heavy oil 49. Kerosene
12. Paper/pulp, chemical fertilizer, 50. Butane -
cement, and other manufactured 51. Ro?.led nonferrous metals
items 52. Ke~. -.ane/butane
13. Coal and oil coke 53. Sp~~ial steel
14. Cement 54. Waste matter
15. Heavy oil and coke gas 55. Wood flour =
16. Coal/heavy oil and coke gas 56. Wood products
17. Ordinary steel 57. Wood scraps
18. Electricity 58. Bark
19. Coke 59. Ref ined nonferrous metal
20. 4-wheel vehicles 60. Scrapped tires
21. LNG 61. Coke
22. Glass, electrical machines and 62. Minar electrical industry
equipment, 4-wheel vehicles, and 63. Blast furnace gas
electric power 64. Ordinary steel and other types of .
23. Nonf errous and gas [as published] steel _
24. Kerosene 65. Industrial products from inorganic
25. Rubber and rolled metal, electric chemistry
wire/cable 66. Solar energy -
26. Heavy oil 67. Electrical machinery and equipment ~
27. Manufactured products, special for industrial use, electrical
steel and components machinery and equipment for public
28. Light oil welfare use, 4-wheel vehicles, and
29. Ceramics/earthenware building/construction
30. Kerosene/city gas 68. Wholesale/retail ~
31. Ordinary steel
32. City gas .
33. Foodstuffs, chassis, and real
estate
34. Foodstuffs
35. Gas
36. Foodstuffs and real estate
- 37. Petroleum/gas
38. Electrical machinery and equip-
ment for industrial use
2~.
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The conversions can be grouped as petroleum to (1) coal, (2) LNG, (3) LPG,
(4) coke oven/blast farnace gas, (S) waste matter, (6) COM, (7) solar energy,
etc.
Coal conversion is mostly from heavy oil, and this is true in the cement, electric
power, paper/pulp, steel, nonf errous metal, and other industries.
Also, there are moves to switch from electric furnaces to cupolas in industries
such as the transportation machine industry.
Coal prices since about 1979, even including faulty coal, have been cheaper than
heavy oil, and it is felt that utilization of coal has been greatly promoted
� through such supplementary systems as low-interest loans for coal conversion of- ~
fered by the Japan Developmental Bank.
LNG conversion has occurred in many industries because of the recognition of the
apecial rate system for industrial use LNG since JFY 1979, the inauguration of
the system for low-interest loans for LNG conversion by the Japan Developmental
Bank, and the existence of Folicy inducements and guidelines for its introduction
by entrepreneurs, based on the substitute energy law.
The preponderance of the conversion is from petroleum fuels such as heavy oil,
light oil, and kerosene, but some industries such as foodstuffs and real estate
have converted from electricity to gas.
Vigorous Use of New Energies and Technologies
COM is a fuel under development which only recently has reached the stage of prac-
tical utilization. In this survey, one input was for investments to manufacture
and use a fuel mixture of pulverized coke and heavy oil.
Also, the number of industries utilizing solar energy has increased. Heretofore,
except for the solar heat distributors, solar systems have ~ust reached the stage
of practical utilization, and the general thinking has been that the economic and
reliability factors have not been substantially proven. Yet, this survey indi-
cates that private industry is actively utilizing solar systems, and there are
moves to substantiate the benefits derived. On further probing into the use of
solar systems, it is to be noted that they are not limited to welfare institu-
tions, but are also for use in factories and stores. -
As described previously, the energy-saving policies of Japan's private industry
are concentrated mainly around investments for facilities. And along with having
the scope of investments somewhat larger in size in anticipation of a rise in
energy costs, the investments will be made on a somewhat long-range basis for the
recovery of the investments. This trend was observed in the survey, which showed
the energy-saving investments of primary ob~ectives in JFY 1980 to be twice those
of the previous year. And given the countermeasures of the various industries,
_ the increasing momentum of energy-saving investments will continue for a while.
On the other hand, energy source conversions at present can compete against the
cost of petroleum, and a good number of industries have acted vigorously, focusing
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on coal convers;~on and LNG conversion poli,cies provided by supplementary aid pro-
grams. Also, the conversion to such new energy sources as solar energy is begin- ~
ning to thrive, and a growth trend is predicted.
In this manner, full-scale investments for energy countermeasure facilities for
the purpose of saving energy and converting energy sources is said to have 3ust
begun, and in any case the keynote is said to be expansion.
For this reason, the trend of energy countermeasure investments will not only
furnish a basis for determining the state of supply and demand hereafter, but
si.nce these investments presently have reached 10 percent of total overall invest-
ments, then from the standpoint of gaging Che course of private industry's invest-
ments for facilities, these activities will increa~ingly bear watching.
COPYRIGHT: Denryoku Shimposha 1980
9510
CSO: 8111/0400
i
I
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ECONOMIC
- TARGET RAISED FOR SAVING OIL
Up 20 Million Kiloliters
Tokyo DAILY YOMIURI in English 24 Jan 81 p 1
, [Text] The government has set the oil conservation target for fiscal 1981
I at more than 25 million kiloliters, up from the 20 million kiloliters for the
~ current fiscal year ending in March.
i
I The goal was announced Friday at a cabinet meeting,
i
A spokesman pointed out that crude supplies remained unstable due to the
; Iran-Iraq war with the price hikes by producer countries compounding the
' problem.
~ The target for private households was fixed at 11,200,OU0 kiloliters
(10,350,000 kiloliters for fiscal 1980), the transportation sector
i 2,800,000 kiloliters (2,650,000 kiloliters) and the industrial sector
11 million kiloliters (7 million).
~
I The spokesman said the accent would be on a switch in the industrial sector
to energy sources other than oil.
Japan reportedly has sufficient crude stockpiles to last for 107 days.
' COPYRIGHT: DAILY YOMIURI 1981
~
Iran, Iraq War Feared
I Tokyo MAINICHI DAILY NEWS in English 14 Jan 81 p 5
- [TextJ The government will set the oil conservation target for fiscal 1981
at 25 million kiloliters, in its first cabinet meeting on energy counter-
- measures Jan 23.
The volume is 5 million kiloliters more than last year.
~ The step will be taken because the international oil situation is expected
- to become turbulent due to the protracted war between Iran and Iraq.
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Government agencies concerned are now making final adjustment on the matter
under instruction from Prime Minyster Zenko Suzuki.
The conservation measures will be almost the same as in last year--heating
temperature at less than 18 degrees centigrade, cooling temperature at
more than 28 degrees centigrade, plus reduction in the operation of
elevators.
But the government will further intensify conservation in industrial
production, including a shift away from oil as a power source, and energy
rationaliza*_ion,
This is because a tax cut has been approved for industries in fiscal 1981
to encourage energy saving measures.
With this step, the Japanese industries are expected to reduce further
energy usage.
COPYRIGHT: Mainichi Shimbunsha 1981
CSO: 4120 ~
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ECONOMIC
COMMENT ON ELECTRONIC EQUIPMENT, AUTOMOBILES, SHIPPING
Tokyo INDUSTRIA in English Jan 81 pp 28-30 �
~ [Text] Electronic Equipm~nt
~
i Statistics of the Ministry of [nternational Trade and Indus- in great demand in the United States. Japan's IC exports
i try show that the nation's semiconductor production during the January^~June period of 1980 showed a 120%a
during the January^~June period of 1980 totaled ~F396,646 increase over the previous corresponding term. The increase
~ million, up 33.5%a over the corresponding term of the was due mostly to the boost in 16 K�bit RAM exports. And
i previous year. Of the total, the output of transistors, such a sharp increase in Japan's semiconductor shipments
i diodes and other non-integrated items amounted to co the United States has created friction between the two
~138.110 million, up 11.4%, and that of ICs ~f258,536 countries since last year. ,
~ million, up 49.5%. Although the production of non-inte- To cope with the situation, four semiconductor manu-
grated semiconductors in 1979 increased only by about facturers - Nippon Electric (NEC), Toshiba, Hitachi,
1.1% from the previous year's level, it began to pick up in and Fujitsu - have been building semiconductor
1980 with the growth in VTR production. Brisk production plants in the United States, some of which have already
; is expected to continue for some time to come. gone into operation. The first main products of these
' In the field of ICs, the output of MOS�ICs was especially makers will be 16 K-bit RAMs. They plan to produce 50%
_I active, showing an increase of 64.5% over the same period of the ICs they sold in the United States.
i of the previous year. This is due to the active tumout of At the same time, Japanese semiconductor manufac-
j calculators, watches, cameras and electronic translators. turers are trying to establish production bases in Europe
i About one�third of the semiconductors produced in quickly. NEC, which established NEC Ireland Ltd. in July,
~ Japan is expoRed. Since more than 40010 of the exports 1974, and started its operation in April, 1976, plans to
is directed to the U.S. market, the market trends there set up another new company, NEC Semiconductors U.K.
greatly influence the exports from Japan. The nation's Ltd. (a tentative name), in Scotland in early 1981. A plant
~ semiconductor exports between January and June, 1980, on the site of 11,000 mZ in Livingston is scheduled ro
totaled ~123,017 million, up 82.6~1a from the like period start assembly in April, 198?, and produce 3 million units
' of the previous year. However, the export growth rate tends of LSIs monthly in 1985. At that time, the employees
to slow down. The exports in January, 1980, were would number 800. Hitachi and Fujitsu are constructing
up 103.3% from the same month of 1979, but the increase plants in West Germany and Ireland, respectively. The
rate dPClined to 78.7% in May and to 58.5% in June. former will go into operation in December, 1980, and the
_ In 1979, Japan's share for ICs in the U.S. market was Iatter in February, 1981. Toshiba is also looking for a site
only 5%, but as far as the 16 K-bit RAMs were concemed, for semiconductor production in Europe.
the share of the Japanese products reached 40�!0. This is due The start of the mass production of 64 K-bit RA~Is in
to successful attempts by Japanese semiconductor manu- Japan has resulted in the rush of the Japanese mahers to
facturers to concentrate on the 16 K�bit RAMs, which were IC production in the United States and Europe. The 64 ~
_ 29
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K-bit RAM is four times as integrated as the conventional K-bit RAMs. Three US-affiliated manufacturers in Japan -
16 K�bit RAM and is believed to become a main product Texas Instruments Japan, IBM Japan, and Motorola Semi-
lh the near future. Since delicate processing is required for conductors Japan - are also going to start the production
the 64 K-bit RAM, it is said to be necessary to invest tens of 64 K-bit RAMs in Japan. Japan is now likely to become
of bfflions of yen for the construction of one line. But a base for the supply of very large scale integration n~em-
NEC, Hitachi, Fujitsu, Tosh'sba, Mitsubishi Electric and ories to the world.
Oki Electric Industry are already building plants for 64
Automobiles
- Japan's automobile production during the January^~ Newly-designed fuel efficient passenger cars marketed since
June period uf 1980 totaled ~,464,019 units, up 18% from around 1973 have generally replaced old-type cars manu-
the year-earlier level. The rise is attributed to favorable factured to meet emission contro] standards.
export business. Exports during the period increased by ~tanufacturers are making all�out efforts to expand
37.9 o to 2,929,000 units (excluding 209,366 units for domestic sales. How much new cars marketed in 1980 can
"knock�down" exports - up 9.8~'0), while the number of serve for sales expansion is not Icnown. There are few
new cars registered at home rose only 0.3~'o to ~,~55,431 factors that could contribute to raising domestic demand.
units. All figures for the tirst half-year period - production, During the second ha1F-year period, a fall of about 10;"0 _
domestic sales and exports - showed record highs. In the in sales appears to be inevitable.
second half�year period, however, Japanese automakers had Export business now going well is not free from unstable ~
to cut production due !o various unfavorable business factors, either. The U.S. International Trade Commis� ;
conditions. The output in August was 710,926 units, sion issued a favorable conclusion on imports of '
a 31.6`~o-fall from July. The figure represented a rise of Japanese cars. But a governmental agreement between
3.?~0 over the previous corresponding month, but it was Tokyo and Washington might result in export controls. -
the lowest year-to�year growth rate in 1980. Japan~se automakers, in fact, have already reduced
After having peaked in March, damestic car demand their production scales somewhat to curb the increase in
leveled off and then turned downward. Since :~lay, exports tc~ the United States. However, if export controls
domestic demand has remained below the year-earlier level. were actually placed, automakers would suffer a great
In August the annual rate uf de~line marked 16%. The impact. Opposition to Japanese car imports is also rising in
biggest reason was an increasingly dim business outlook, Europe. If the United States took severe control measures,
and the sluggish demand was accelerated by a sharp increase European countries would foilow suit. That would force
in fuel costs since late 1979. sharp production cuts on the manufacturers. Even if there
The fall in demand for regular trucks is especially big. were no import restrictions by the United States and
llomestic sales of these trucks in August were 9,150 units, Europe, competition would intensify as compact car
down ? 1.79~ from the previous corresponding month. production in the U.S. gets into gear.
lt was the first f~ll below 10,000 units in 31 months. Tne When it comes to midget cars with a piston displacement
fall in annual comparison was ?6.9% for large trucks with of less than 550 cc and motorcycles, business continues
maximum load capacities over 5 tons, and 16.59'o for those growing. Sales of midget cars during the lanuary~July
with load capacities of 3.5^~5 tons. These figures indicate period of 1980 totaled 569.000 units, up 18.3% from the
that cuntrols on public works projects are one of the year�earlier level. Exports nearly doubled to 48,963 units.
reasons for sluggish demand for regular ~rucks. Domestic sales and exports of motorcycles are also on
Domestic sales of passenger ~ars in August were also the rise. Their production during the January^~August
down with about 141.000 units, a fall of ]6�'o from the year period increased 45.~3'~ to 4,033,??~ units. Domestic _
before. While subcompact cars with 1,000^~I,~00-cc piston demand for small bikes is especially strong. Honda h1otor
displacement enjoyed persistent popularity, compact c~rs marketed scooters again. Brazil, Spain and other countries
with 2,000 cc or more suffered a sharp setback of 31;'~. ban the impo~t of assembled motorcycles, while Italy is
30
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imposing import controls. Different from the case of auto- 60 assembly plants overseas and they have caused no trade
mobiles, motorcycle manufacturers have no strong rivals frictions.
overseas. Japanese manufacturers are operating more than
Shipping
The shipping industry which was hard hit by the prolonged by tankers by SOr/o within this year. Currently Japan has
slump has finally begun to show signs of an unexpected crude oil stockpiles amounting to ~ million kiloliters by
recovery from the latter half of last year thanks to upward utilizing ?0 VLCCs (very large crude oil carriers). It means
- trends of tanker and tramp markets and exchange gains that 10 more VLCCs will be additionally chartered to
arising from the depreciation of the yen against the dollar. increase stockpiles. Since only 30 VLCCs out of a total of
Transportation volume of Japanese merchant fleet, includ- 750 such tankers now existing in the world are free from
ing chartered foreign ships, during 1979 totaled long-term charter cor:tracts, it is anticipated that planned
' S72,760,000 tons, up 6.6% from the year before, thereby ~ong-cerm charter contracts involving 10 VLCCs will have
; surpassing the growth rate of global seaborne traffic which a stimulating effect on the tanker market, especially in
stood at 5.2%. Such increases in the transportation volume winter season when crude oil will be in great demand.
' by the Japanese merchant fleet resulted from beoming Container traffic by liner ships continues to remain
I exports centering on automobiles. brisk, and the industry offsets its deficit-ridden uamp
' The booming exports from Japan continue, but there are and tanker divisions by earnings derived from liner divi-
~ many anticipated minus factors for the shipping industry sions. Although favorable factors have come out of the
~ as witnessed in a siowdown of cargo traffic due to global tramp and tanker markets, the future market prospect is
i business recession, upward trends of the yen's exchange far from reassuring. Particularly noteworthy in this context _
~ value in and after April, 1980, and a steep iise in fuel is that the Hong Kong shipowners who have expanded
~ costs. Consequently, trends of shipping markets for tankers their sphere of influence are now threatening Japanese
I and ;ramps will pose a big problem. shipping industry's competitive edge.
I In late August, however, Freightage of coal shipments It is recalled that Hong Kong shipowners have been
from the U.S. to Japan rose from S24 to 527.70 per 1 ton expanding their business by actively placing newbuilding
j of coal. This was due to the fact that demand for coal has orders on Japanese shipyards under charter contract
i grown as a new energy source to substitute oil, thereby arrangements made with Japanese shipping firms. The total
; prompting increases in seabome haulage of coal. Since coal bottoms now under control of the Hong Kong shipowners
! carriers have so far been assigned to haulage of grains and are estimated at ~3 million deadweight tons. This figure is
automobiles in an attempt to cope with overtonnaging close to 89 million deadweight tons owned by the Japanese -
trends of such ships in the trade, these coal carriers were shi in indust
I pp' g' ry, thereby exceeding 48 million deadweight
~ increasingly called on for haulage of coal. This led to boosts ~ons of the U.K. Therefore, Hong Kong now ranks fourth
in the tireightages of coal. This was also caused by the in the world in terms of deadweight tonnage, fo!lowing
prolonged strikes by Australian coal and port workers Greece, the U.S. and Japan.
which produced a far-reaching effeci on freightage levels pn avera~e age of Hong Kong-flag ships is estimated
of dry cargo as a whole. [t is difficult [o predict as to at about S years whereas that of Japanese-flag ships at
whether or not such steep rises in freightage of the tramp 7 or 8 years. Since it is feared that should Japanese shipping
market wi11 continue as views and opinions of the interest- firms suspend chartering Hung Kong-tlag ships, it will
ed parties over the matter are divided. invite deterio:ation of the current freightage level in the
[n the meantime, favorable factors related to the tramp market, the Japanese shipping industry is trying hard to
market have begun to emerge. The Ministry of International work out countermeasures against Hong Kong shipowners
Trade and Industry (MITI) and the Japan National Oi] whose ship operating costs are low as those ships were
Corp. have decided to increase floating crude oil stockpiles mostly built at the time of shiphuilding recession.
COPYRIGHT: Diamond Lead Co., Ltd. 1981
CSO: 4120
31 -
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. . . ~ .
SCIENCE AND TECHNOLOGY
GENETIC ENGINEERING FOR MASS PRODUCTION ;
Tokyo INDUSTRIA in English Jan 81 pp 19-20
[ Text ] Ajinomoto Co., [nc., a world renown- quantity does not pay in the case of
ed manufacturer of amino acids, has amino acid. Ajinomoto developed
announced that it has successfully con- the production technology to mass-
structed Escherichia coli, which pro- produce amino acids in almost pure
duces amino acids, by applying genetic state at low costs. [t is a new applica-
engineering for the first time in the tion of genetic engineering. i
world. The announcement was made According to the rnethod developed ~
- on November 1?, 1980. Scientists in by Ajinomoto, part of DNA (deoxy ~
a number of countries have been con- ribonucleic acid) which forms gene
ducting research on the application of existing in a strain of Escherichia
genetic engineering, the technology to coli is spGced and inserted in a
produce living things with new charac- plasmid that will become a vector
teristics. Insulin and interferon have (vehicle). Then the inserted DNA
already been produced by rneans of part is transformed into another
the genetic engineenng, and they are Escherichia coli to obtain trans-
contributing to the welfare of the formant, and the transformant thus
people. obtained is cultured to make
Genetic engineering is a new tech- enzyme protein. A large quantity
nology whose potential application is of amino acids is produced from the
immense. An increasing number of enzyme proteins thanks to the pro-
scientists ~t various organizations, perty of the gene. The more enzyme
including research institutes of univer- proteins are made, the more amino
sities and large enterprises as well as acids are produced efficiently. While
small venture businesses, are engaged insulin and interferon are produced in
in the research in this tleld. And their accordance with recombinant DNA, ,
successful results have been reported enryme protein is first made in the
one after another. case of amino acid, and amino acid is
Insulin and interferon, important mass-produced by means of enzyme
pharmaceutical products, are a sort of action; this is a big difference in pro-
intemal active metabolites and are ducing insulin and interferon, and
traded in several milligrams. But amino amino acid.
acid is an ordinary chemical product In addition to amino acids, the
whose minimum unit of trading conventional fermentation method
volume is a kilogram. Unlike expensive produces variuus byproducts which
medicines, production in small require complicated processes to be
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separated later. But Ajinomoto's new Tokyo, many microorganisms with a
method produces amino acids alone, wide variety of characters are kept
thereby simplifying the production for continued research. The recently
process. As a result, nearly pure amino announced production method of
acids can be obtained at low costs. amino acids is the result of the com-
In applying genetic engineering, it is pany's rich experience and advanced
- important to increase the number of technologies.
plasmids. Under the conventional Ajinomoto pioneered the way for
method, a large number of plasmids application of genetic en~neering to
are cultivated by means of antibiotics, the mass production of general
such as chloramphenicol. This method, industrial chemicals. The company
however, causes to raise production ~,~rill conduct research and develop-
i costs, because chloramphenicol has to ment of production technology to
be removed from the finished prod- stabilize the production fungi and put
~ ucts. Ajinomoto has succeeded in such a technology into practical use.
~ obtaining many plasmids by adjusting The newly developed technology
~ the components of the culture solu- which uses genetic engineering is
i tion and ~vithout using any medicine. expected to contribute to further ~
~ Japan boasts the most advanced growth of Ajinotinoto, since the com-
j fermentation technology in the world, Pany needs to develop new production
! and Ajinomoto is the worid's largest
, methods without sticking to the old
i manufacturer of amino acids. The methods in order to maintain its -
company's amino acids exceed more position as the foremost producer of
~ than '_'0 kinds, most of which are amino acids. Th~are is also a strong
- i produced by the fermentation
~ methods. At its Central Research possibility that the company's new
~ technology will be applied to other
~ Laboratories in Kawasaki, adjacent to fields of production.
COPYRIGHT: Diamond Lead Co., Ltd. 1981
~ CSO: 4120
~
-
-j
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SCIENCE AND TECHNOLOGY
INTERFERON TO BE MADE IN QUANTITY
Tokyo THE JAPAN TIMES in English 31 Jan 81 p 2
[ Tex t] ~~~~~�.~~t.~ i h~�o~o i-;~ The ins[itute has set up a -
private instiWte here plans to plant valued a[ Y600 million to
- start the nation's [irst com- prcxiuce [F with'Z.UfiO hamsters.
merciai production of in- ���'ith this method," [he
terferon ~ iF), a cellular protein spokesmar said. "We can ob-
claimed to be eftecti~~e in tain enough [F for a cancer
fighttng cancer, in February. patient from l0 hamsters." ~
Havashibara Biochemical He said some scientists have ~
Laboratories. Inc. wfll produce claimed IF is eftective against i
- 10 biilion to 20 billton units o[ IF some [ypes ot cancer.
a mor.th Initially tor suppl}' to There is not adequateclinical
lal~oratories and hospitals in data available, however, to
Japan and overseas, an in- prove this because [F has been
stitutespokesmansaid. produced in very limited
Ne said a cancer pa[ient quantities so tar, irom hucnan
needs an Injection of three w h i t e b I o o d c e I I s, [ h e
m1111on [0 10 million units ot IF spokesman said.
at a time. F[e said mass prociuction oi IF _
The ins[itute succeed In ex� ~vill help determine ho�~ ei-
tracting IP by implan[ing tective the anttviral substance
cancerous cells ot Leukemia is against cancer antl other
patients into hamsters in 19~9. diseases caused by viruses.
Scientists described the
- method as an epochmaking [F
- production technique.
COPYRIGHT: THE JAPAN TIMES 1981
cso: 4i2o
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SCIENCE AND TECHNOLOGY
SUPER-SCHOTTKY DIODE MADE IN GOVERNMENT LAB
Tokyo THE JAPAN ECONOMIC JOURNAL in English 20 Jan 81 p 13
; [Text]
! ~ew efficient artificial sate- The best conventional According to lhe known rule
; llite communications, including Schottky diode is made of gold that the smaller the point of
; those of remote-sensing re- and a gallium arsenide semi- contact between the metal and
I source satellites, radio tele- conductor. It is now chiefly the semiconductor parts, the
! scopes and other m.eans of applied to making the radio greater the diode's radio wave _
j radio communications have w~ave detector in telecommuni- sensitivity, SSD's gallium
been promised by a Japanese cation apparatus, but its uses arsenide semiconductor, built
i governmental laboratory in the have been limited to only about on a substrate, and its niobium
form of a supec-sensitive type 100 ~igahertz in radio wave fre- section meet each other at an
of Schottky diode. quency and moderate degrees inEinitestimally small point
I According to the developer, of power output of onl~ 3 by ~ microns in the
i t h e E I e c t r o t e c h n i c a I center of the diode which is 11at
such apparatus.
, Laboratory of the ;4linistry of Some better ver- and mechanically stable. A
~ International Trade and sions of the Schottky greater sensitivity is now being
~ Industr ~'s A enc oF Industrial sou ht by further mini-
! y g y diode, � sensitive g
j Science and Technology, its enough to catch atunzing the contact point by
; Super-Schottky Diode ~.SSD~ feeble radio waves the application of very large-
I created on a trial basis is the and more resistant to scale integration electronic
first to be developed in a noises, had long been circuitry building technology.
reliable, lasting � device sought in satellite According to the developing
~ although the idea is not new. communications and research team, SSD is pro-
~ Its basic principle using the radio telescopy in- ducible at low temperatures
phenomenon of super- ~�olving extremely below 100 degrees C. and is hard
conductivity Uoss of electric great distances. to degenerate. If modified into
' resistance of inetals? at ciose to ,~s the laboratory an electric current flow-con-
~ absolute temperature of minus described its SSD as trolling thre~terminal type,
273.16 degrees C. had been used an answer to such SSD will be applicable to _
- in a similar Schottky diode problems, its new creation fea- computers and radio wave
breakthrough using lead for its turing the use of niobium, a oscillators and amplifiers.
metal part. But that American metallic element, for the metal Patent is being sought for the -
precedent failed to be perfected part, and gallium arsenide as basic SSD technology.
in applicable Form due to the the semicond'uctor part, TheSSD development project
uncertainty oF its service life. although requiring re- is subsidized by the Govern-
~ SSD which follows the basic frigeration with liquid nitrogen ment.
Schottky law that w�hen some close to absolute temperature A t'ni~�ersity of Tokyo pro-
kinds of inetal and semi- for operation just like the con- fessor has envisioned ~ wide
conductors are brought into ventional ones, has proved to scientific applicability for the
contact with eacli other, the be about 40 times as sensitive SSD, dismissing the trouble oF
diode will detect radio waves. as the latter in detecting micro- refrigeration as nothing com- '
and milli-levels of radio waves, pared w�ith its great efficiency.
besides being noise�resistant
and long-lived enough for pra-
ctical application.
COPYRIGHT: 1981 THE NIHON KEIZAI SHINBUN, Inc
c so : 4i 20 35
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SCIENCE AND TECHNOLOGY
EXPORT INSURANCE SYSTEM TO BE EXPANDED
Tokyo THE JAPAN ECONOMIC JOURNAL in English 20 Jan 81 p 3
[Text ] ~e Minstry of International regtilar Die~ and implement the If a Japanese enterprise
Trade ~ Industry has decided new system duting fiscal 19~1. plans to import oil, coal or
to expand the present export ~ the tase ot the pefro- natural gas on a develop~and-
_ insurance system to cope with chemical complex construction ~mport formula, it normally
an increase in plant exports project being undertaken by sets up a wholly-owned sut>
by consortiums of Japanese en- Iran,lapan Petrochemical Co. sidiary or a joint [irrrt with
terprises, American and Eu- (IJPC), a joint venture of the local interests in the country I
ropean firms and an increase in Mitsui interests and Iran, the concerned. ~
imports of resources under the ~me ~ 110 billion which Mitsui Under the present system,
develo~and-import Eormula. & Co. has invested or loaned to investments or Joans made by -
Under plans considered by 1JPC wiil become the object for the parent firm in the su~
MITI, debt guarantees made to payment of werseas invest- sidiary and joint company are
a joint firm by the parent ment insurance if work on the ~overed by the the overseas
company in the event a tr~ding project is suspended under an investment insurance.
house sets up the joint tirms or agreement with Iran's National If the law is revised, the in-
a subsidiary for import oFoil or Petriochemical Co., the Iranian surance will become applicable
coal in a develop-ahd�import partner, under the present also to debt guarantees ot the
tormula will become applicable system. parent firm made in respect to
for export insurance. But debt guarantees made by the subsidiary or joinl firm.
A company which receives Mitsui for borrowings 'made
orders for plants jointly with'a from lhe Euro market by IJPC As measut~es to expand in-
foreign ~rm also will be able to will not become appllcable [or surance [or plant exports,
subscribe to the insurance insurance. orders received by Japan~se
even if the ratio of order The revision of the Export In- firms taking part in inter-
received by the Japanese (irm surance Law is aimed to in- national consortiums will be
is below 50 per cent. clude such risks as objects for covered even i( the ratio of the
1n addition, the rate oE in- insurance payments. orders received by the Japa-
surance emount for damages As the first step, debt nese firms is less than 50 per-
sutfered will be raised to 95 per guarantees made by Japanese cent.
cent from the present 90 per enterprises tor projects in- Under the present system,
cent. volving developmenl ot re- only "Japanese' firms" are
MITI plans to submit a bill sources abroad will be added to covered and only those Japa-
for revision of the Export those applicable for overseas nese partners in tl~e con-
lnsuranee l.aw to the current investment insurance, sortiums whose export ratio
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, exceeds 50 per cent are re-
garded as "Japanese f irms."
In addition, the rate oE in-
surance amount tor damages
~ sutfered will be raised to 95 per
cent from ttie present 90 per
cent for ordinary export in-
surance which is being utilized -
the most.
Through this, the amount of
irtsurance to be paid to a Japa-
nese firm in the event a con-
tract is invalidated or becomes '
impossible to be carried out
will be raised.
Parallel wilh the revision of
the system. 11t1T1 plans to in- -
crease the premium amount for -
, the insurance.
I
COPYRIGHT: 1981 THE NIHON KEIZAI SHINBUN, Inc
C SO : 4120
~
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SCIENCE AND TECHNOLOGY
BEGINNING UF SOLAR THERMOELECTRIC GENERATION DISCUSSED
Tokyo ASAHI EVENING NEWS in English 21 Jan 81 p 3
- [Article by Yukiko Okuma: "Solar Thermoe].ectric Generation"J
, [Text]
It is by no means aa ex- tower light-collecting system ceases with the falling of rain
aggeration ta say that the year and the paraholoid light-col- or snow. At the plant i? Nio
1981 is the "first year of solar lecting system. According to Town, the plan is to accumu- ;
theanoelectric genentinn," plans, ihe plant is to be op- late energy ia the form of hot ;
because there are six plans- erated on a trial basis until water or molten salt, but this !
in Japan, the United States, the end of this year, and from works only for three hours at
France, Spain. the Internation- nex: year, ways to cut down most.
al Energy Agency and the Eu- on costs will be sought by re- Such being the case, the
ropean Community - aiming placing the components with power-generating cost at this
to generate gower by this irnproved ones. plant is about ~f600 per kilo-
method for~the first time with- Solar energy, which is much watt-hour, which is far higher
in this year. In the lead and sought after because there is than the ~�17.70 entailed in
- ia for the honor oE becom-� an inexhaustible su ply of this generating power by using
in the "world's first" is the p petroleum, the 3f12.40 by
8 energy and because it is clean, using coal and the ~8.08 by
plant under construction on the h~, in fact, two flaws. The
site of a former salt farm in first drawback is that the vol- nuclear energy. Because of
Nio Town on Shikoku Island_ ~e of eaergy per azea is much rainfall and because its
Ridin on a train on the smalL latitude is not low, Japan can-
8 not be said to be a country
Japanese National Railways' , In other words, solar energy best suited for solar
Yosan Line for about one hour is like energy from "low-grade thermoelectric generation.
from Takamatsu, Shikoku's ore." In the case of the plant HoWever, only technology
main gateway, one arrives at at Nio Town, the energy from nurtured strictly under such .
_ Takuma Station in an area "Iow-grade ore" is to be coa= unfavorable conditions can
which is known for the legend- cenuated by means of more demonstrate its true worth
ary figure Taro ,Urashima. than 15,000 sheets of mirrors abroad In actuality, Australia,
Traveling west by car for that are used in the China and countries in the -
about 15 minutes from the sta- two systems. A maximum of Middle East and Southeast
tion, one reaches the site 1,000 kilowatts of power are Asia are placing great ex-
where the solar thermoelectric to be generated by each sys- pectations on Japan's
generating plant is being con- tem. In t6e present stage, how- technological capability, and
structed - a site nestling ever, the plant can collect cal)s for technical cooperation
among'mountains covered by only one/several hundredths of aze pouring into this country.
tangerine trees.. The site is the energy the sun is releas- An ~ntemational solar en-
about 100,000 square meters ~g, Moreover, quite a lot of ergy symposium was held in _
in area. The first object that energy and money are re- Japan in February, 1979. On
one sees on arrival is a 69- quired for the manufactute of this occasion, the representa-
meter-high light-collPcting tow- ~e mirrors. rives of developing countries
er rising into the sky. Next, 'I'he. second shortcoming is spoke on why they were ~lac-
one sees a group of mirrocs . that the supply of energy
lined up like panels in a mass
, game. The Mitsubishi Electric _
Corp. and the Hitachi, Ltd.
are technologically vying with
each other with respect to the
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ing their hopes on solar e~ PoR'er - generating station of
ergy. 100,000-kilowatt level or for _
A representative of Bangla- low-latitude areas which have `
desh said: "The advanced na- the sun beating down upon
tions say, `We have coal and ~em from the top.
nuclear energy even if the Ia the paraboloid method,
price of petroleum rises.' sunlight is gathered in heat-
However, we have no coal in collecting pipes by means of
our country, and harnessing P~~loid mu~rors.
nuclear energy is too difficult units can be separaYed
for us." ~nd used in factories and
An Indian representadve buildings operating on a small
pointed out that "there is coal scale as well as m high-lati-
in the noriheastern part of our ~de areas and on mountaio-
country, but there is no means sides. The method of generat-
to carry this coal from there ~B electricity from heat is the
to where it is aeeded."~ same as thermai power gen-
A represerrtative from Sena eration and auclear power
gal stated: "We have used up 8eneration.
our firewood. As we have to
travel far to obtain it, we have
no idea when we caa get
~ back."
' All of them looked as if ~
they were drivea into a
corner.
Memo 1: Construction
~ schedules of various countries:.
Countries constructiog facili-
ties to generate power for the
first time with solar energy
within t6is year a e the United
, States (10,000 ki~awatts or 10
, megawatts), France (2,000
kilowatcs}, Spain (1,000 kila
, watts), four countries in the
European Community (a
1,000�kilowatt facility on Sici-
I ly), and 10 member countries
of the IEA (two 50-kilowatt
units in Spain).
Also, planning to build fa-
~ cilities are the Soviet Union
, (a 5,000-kilowatt facility in
' 1983) and West Germany (a
20,000-kilowatt facility in
1985).
. Memo 2: Tower light-collect-
ing method~ and paraboloid
]ight-collecting method:
_ In the tower method, mir-
rors are lined up around the
tower, and by precisioa ad-
justment of the direction the
mirrors are facing, sunljght is
gathered in the heat collector
on top of the tower. This
- method is suited for a large ~
COPYRIGHT: Asahi Evening News 1981
CSO: 4120
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- SCIENCE AND TECHNOLOGY
SOLAR HEATI:RS SAID LOSING POPULARITY
Tokyo nAILY YOMIURI in English 25 Jan 81 p 2
[Text]
Lately the demand for during the previous one- which ends soon, but on13
solar water heaters, which year period. 1,600 persons have requested
once experienced a boom, The demand for the de- the loan, so far.
has been slowing down. vices, however, suddenly ~garding its d�creased
It was only six montl~s "cooled oS" aiter last demand, a maker believes it
ago that the demand for autumn, despite the ap- is related to the decre~se
the devices skyrocketed as a P~ach oi wlnter. in new hous� construction,
- result o! the iacreasing According to an izdustrial However, the rather high
price of kerosene. ~~'ce, the average sales cost of the device is be-
Many consumers, bother- reached around 1~,~~ ~ lieved to be the main rsa-
ed by the increasi.:g price month until last summer. son for its decreasing de-
of oil products, were at- ~ejr sales this January mand.
tracted to the new device were only 25,000, St is be- Even the simplest type
which L, placed on a roo! ueved. costs a total of 3~20U,000.
and which provides hot ~ ord~r to conserve en-
� , ergy, the International Thare is on~ type which
water by using free' solar ~ade and Industry Minist- costs more than ~1,000,000
en~rgy. ry introduced a low interest in total.
Abcut 500,000 solar water laan o! 5.5 percent for con- When thls amount is con-
heaters were sold trom last sumers to buy the device. sidered, it becomes expen-
spring to autuma. ~r ministry nrepared sive !or consumers to use
Thia marked a very high the loan for 10,000 devices hot wat~r heated by "free
increase-377,000 were sold in the current flscal year energy" from the sun.
COPYRIGHT: DAILY YOMIURT 1981
CSO: 4120
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~ SCIENCE AND TECHNOLOGY
DE4ELOPMENT SET FOR ICEBREAKING TANKER FOR ARCTIC OIL
Tokyo DAILY YOMIURI in English 24 Jan 81 p 2
I [Text]
I Japan wiII shortly ~oin
~ the international race to
i develop a large tanker with
icebreaking abilitq by con-
~ ducting'research at a ship
' test bastn now being con-
structed at the Transport
Miniatry's 8hip Research
, Institute in Niitaka, Tokyo.
The flve-yea~ research
I proiect, envisaged by the
! ministry, wlll be participated
~ in bq the Japan Petroleum
Developmen~ Corporation
~ and leading ahipbuilding _
i companies.
j The proiect is scheduled
to start in March.
The demand for tankers
with icebrealang ability haa
been lnaeasing as explora-
tion and drilling oi oll in
the Arctic OcEan accelerat-
! ed in the wake of the oil
~'i crisis. .
There !s reportedly an
I estimated reserve of 100 to
~ 200 billion barrels of oil in
~ the Arctic Ocean.
' Construction on the test _
basin, started four years _
ago, ls now in its flnal stage
aith completion scheduled
for late February. The con-
struction cost Ls estimated ~
at Y1,300 million.
COPYRIGHT: DAILY YOMIURI 1981
CSO: 4120
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SCIENCE AND TECHNOLOGY
NEW SHIPS WILL USE 50 PERCENT LESS FUEL ~
tokyo DAILY YOMIURI in English 2 Feb 81 p 2
[Text ] Several leading afeelmakers plan fo introduce dry bulk
carrisr~ who:s fusl e~cienry is 50 percent better than
rhoss of conventlonol shlps.
Nlppon Steel Corporation, resistance will be employed.
Nippon Kokan and Sumi- Sa.ils will be used con-
tomo Metal Industries have ~urrently with an internal
already decided to build combustion engine. ~
two such ships each under Nippon Steel Corporation
the 37th (Sscal 1981) gov- plans to build two 200,000- ,
- ernment - sponsored ship- ton bulk carriers, and Su- ~
building program (kellsaku mitomo Metal Industries '
zosen). plans to con~truct two 170,- ~
- Kawasaki 3teei Corpora- 000-180,000-ton ships.
tion and Kobe Steel are Nippon Kokan's two ships
studying such plans, will be of 140,000 tons each.
_ The exceptional fuel effi- The increasing costs o!
ciencq will be attained by bunker oil are hurting the
the combination of the fol- steelmakers as they must
lowing methods and de- reimburse shippers who car-
~ vices: ry tneir ore for any increases
� A screw whose diameter in the cost o! the oil under
is about 50 percent long- long-term charter contracts.
er than that of the con- �
ventional screw and whose
pitch is controllable wiil be
used to minimize the loss
of energy,
� A iuel-ePflcient engine
will be developed.
� Exhaust gases and ez-
haust heat produced by
the ship will be recycled -
for heating and power gen-
eration.
� Fuel will be saved by �
operating the ships at a
reduced speed.
� Antifouling paint (paint
to prevent the encruating
of the ship bottom with
barn.acles, oysters, etc) wili
be used to reduce surface
resistance.
� A hull shape which mini-
- mizes the wave-making
COPYRIGHT: DAILY YOMIURI 1981
C50 : 4120
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SCIENCE AND TECHNOLOGY
JNOC TO PARTICIPATE IN OIL SHALE DEVELOPMENT
Tokyo THE JAPAN ECONOMIC JOURNAL in English 20 Jan 81 p 4
[ Text ] The Japan National Oil proven oil shale resources.
Corporation is planning to . The three counfries already
, engage ir~ projects to develop have indicated their readiness
~ oil shale resources, a sector to cooperate with Japan in
~ which was virtually ignored by development of resources.
' Japan so far. Southern Pacific Petroleum -
~ Since funds for research and Co. of Australia also has sought
development of oil shale re- the participaGon of the JNOC
i sources have been set aside in on a project to develop oil shale
the fiscal budget for the first resources .along khe eastern
i time, the corporation plans to coast of Queensland State.
start tec6nological develo~ China is producing small
! ment for oil shale and work for amo~t of shalP oil in wushun
i realization of overseas pcojects in the northeastern part of the
~ by sending rr?issions to Aus- country and in Maoming, in the
~ tralia and other countries. southern part of Guangdong
! It hopes to develop tech- Province. Production costs are
I nology for producing shale oil high because of the out-of~ate '
from oil shale in the next five- methods used.
' yeaz period and import some 44 Maoming, where 700,000
! million barrels of oil shale in ~nels of oil shale are being
~ fiscal 1990, and some 107 turned out annuslly, is said to
~ million barrels in 1995 from have confirmed deposits of
, Australia, China and Brazil. some 1.5 million barrels. -
~ The corRoration intends to ~ina is planning to boost
spend some ~ 13 billion in the ~tput in the area to 3 miilion -
I five years beginning C~sca11981
, for the purpose of constructing ~~s annually.
an shale oil plant and develop The JNOC believes there is
Japan's own techndogy for room for Japan .to cooperate
operating the plant. . with China in improving
It also plans to build a pilot ~�~~~on at Maoming and in
plant with a daily output P~'ojects for clevelopment of
capacity of 300 to 500 to~ in ~W oil shale resources in the
fisca11983-84. Shangdong and Shanxi Pro-
As countries for development ~n~'
of oil shale resources, the oor- ~ Brazil, the state~wned oil
poration regards Australia, ~mpany Petrobras is planning _
China and Brazil as the most to construct a commercial
promising. plant with e daily output capa-
Both Australia and China city of 50,000 barrels.
have large potential_depo~its of It is now operating a test
oil shale while Brazil possesses p~ant with a deily outnut -
- one-fourth of the world's capacity of 1,000 barrels. .
COPYRIGHT: 1981 THE NIHON KEIZAI SHINBUN, Inc
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SCIENCE AND TECHNOLOGY
IBM TOPPED IN DOMESTIC SALES BY FUJITSU
Tokyo THE JAPAN ECONOMIC JOURNAL in English 20 Jan 81 p 11 -
[Article by Kiyoshi Otani]
[ Text ] Fujitsu Ltd. became the made by Japanese com,~ut~t.
talk of the town when its companies in their
computer sales in fiscal 1979 ternational competitiveness.
! ended March, 1980) were Nobody is more keenly aware ~
found to have surpassed thase of this than IBM Japan, which
of IBM Japan Ltd. for the first has so much in common with its
time. Many believed that the Japanese competitors in
event epitomized the spec- managerial and other prac-
tacular rise of the Japanese tices.
computer industry. Fujitsu's Fujitsu's serious efforts to
' success may have been develop its own computers
natural in view of its power- started in 1960, ironically the
ful corporate potential and year when its request for
the market's changing needs, ~~~ological assistance to IBM
especially for multipolar treat- W~ flatly turned down.
ment and disposal of data and Ironically again it was IBM
information. itsetf which provided an ur~
- The growing popularity witting helping hand to Fujitsu
; of computers resulting from when the latter was being
technological advances in semi- forced to fight a losing battle
conductors, communications agairLSt the world's leading
equipment and computers computer maker. An instant
lhemselves seem to make and runaway bestseller, IBM's
changes mandatory. "System 360," first announced
Strong sales campaigns ~n 1964, offered compatibility in
software with other machines
~ "It is futile to be excited - a tradition handed down to -
- - about mere changes in later generations of computers.
figures," stated President This proved to be a godsend for
Takeo Shiina of IBM Japan Japanese computer makers,
when he learned that his includingF~jitsu.~
company's sales trailed thage �r~n they are given a
of Fujitsu in the last fiscal ~finite goal to strive for,
year, ~~because the contents af Japanese corporations show
our sales are considerably ~ti.aordinary versatility. The
different from . those of our ~apanese Government also
Japanese competitors." Shiina, provided financial assistance in
however, frankly admitted that lens of billions of yen. The
Japat?ese com,~uter r~ult has been tfie debut of a
y~manUfa~rers heve gj~eatly of high quality com-
bolstered their corporate operative under IBM
prowess in recent years. softwaGe. ,~tis, together wiEh
Tpere.is barely~tmy t~~'to ''a~ressive sales campaigns by
emphaslze the great~ 'strides Japanese computer makers,
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has led to brisk marketing af Actlve recruttment Office automation
mad~in-Japan aomputers. It ~~VVe failed to fully InFormed sources believe
has been not uncpmmon among anticipate the sophisticated and that the focus of demands in the
Japanese computer firms to changing demands of the Japanese computer market will
offer from 50 to 80 per cent ~apanese market as to ter- f~~:~ther shift to smaller
price reductions. Some go so minal equipment for banking machines for local processing
far as to install their machines �
virtually free of charge in corporations, admits and dispoal of data and in-
expectation , of future President Johrt Opel of IBM of formation.
patronage. the United States. "We ~ are According to a survey by the
IBM, on the other hand, has very sorry that development of Japanese computer induslry,
never resorted to price Chinese character systems has the number of displays used in -
reduction tactics on the ~ken so much time." the United States is now more
grounds that (t has built its ~M Japan, a subsidiary than 20 times as high as that in
reputation on its steadfast a?ce removed of IBM of the Japan, although the number of
United States, is tu~ndicapped CpUs used in America is only
adherence to regular prices. by the necessity of seeking 2.5 times that in Japan.
. This tactic, Nowever, is finally a~proval of its higher-ranked Industr ~nformanls are of lhe
beginning to lose its mythical y
eFfectiveness in the face of organizati0n acrass the Pacific I'irm belief that Japanese
many Japanese users who have on any important new atrategic . corporations will sooner or -
Lasted the sweetness of huge ~cisions. The company is laler follow their American
price cuts offered by Japanese ~finiteiy in a poorer position counlerparts in actively in-
computer makers. ~han its Japanese co~mterparts stalling displays in their efforts
. in promptly and meticulously for [urther automation ol' their
Smalltr models responding ~o ~the unique office work.
Domestic computer makers demands o! the Japanese Whether IBM Japan can
also have benefited from the markets. regain the top sales position in
changing needs of the market. A major reversal also is seen lt~e Japanese cocnputer in-
In parallel with the sharply ~~p ~t~~ ~ I'~ dustry depends on the degree ol'
_ growing number o[ small and Japan and its 3apanese com- its success in correctly gauging
medium size corporations using petitors. In the two decades the particular uffice
computers, the focus of since about 1955, IBM Japan automation demands of the
demand has definitely shifted ~s actively employed able Japanese m:~rkets and quickly
- from centrally-c~ntrolled large- Personnel, with recruitment in responding to them. '
scale machines to their locally- a single year running up to Fujitsu also will ~iot be able
centrolled varieties. Many more than 1,000 at Limes. Some lu continue its rapid growth
factories and branch offices of ~~'ormed sources go so far as to unless it makes sure that it is
major corporations also are ' claim that IBM Japan once more than well prepared in the -
beginning to actively use monopolized top~notch per- field of office automalion.
locally-controlled computer sonnel. From ab.out 19T5, Computer makers have so far
systems. In other words, ~Wever, IBM Japan has been deatt exclusively with a highly
demand has been sharply foltowing a highly modest limited ~iumber of experts
curving upwacd for small employment policy with next walled in what is usually
computers, terminal equipment Year's recrtiitment of new ref'erred to as computer roo?ns.
and communications equip~ university graduates limited f~rotn now on, however, they
onl to some 100.
ment and technology. As Y should b^ prepared tu deal with
Japanese computer makers FUjitsu, on the otF?ar hand, amateurs as the age of lruly
have mostly grown out of ~s been constantly recruiting ~x~pulariced computers seems
more than 500 new uni~ersity iniminent, thanks to great
communications equipment graduates every year. advances made in LSIs, micro-
manufacturers, they are president Taiyu Kobayashi cuiiiputers and new com-
partitularly skilled in such claims that the true munications technologies.
small-scale machines. This, ��tlowering" of such new em- When such an age actuaUy
together with their ex- ployees WiU come in the near comes around, easy handling,
traordinary versatility in [uture. ~ rather than performance arrd
development and bold price prices, will become the decisive
reductions, have allowed Iactor in choosing new com-
_ Japanese computer makers to puters.
virtually clean ~up the market
for small and medium size
users.
COPYRIGHT: 1981 THE NIHON KEIZAI SHINBUN, Inc
CSO: 4120
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I
. SCIENCE AND TECHNOLOGY
COMPUTER MAKERS COMPETING FOR BADGE CONTRAC'i ,
Tokyo MAINICHI DAILY NEWS in English 28 Jan 81 p S
[Text] Leading computer makers In the [iscal 1981 budgetary
are intensifying competition to tramework, the DA put forward
get the attractive contract tor a studies for setting up a new
newly designed Base Air BADGE.
Defense Ground Environment The present BADGE system
(BADGEI system estimated to with 24 radars was produced by ,
cost 200 to 300 billion yen. . Nippon Electric Co. with the j
The cost will be ten times as help oi licensed technologies I
much as that for the current irom the Hughes Co� of the U.S.
BADGE system ~vhich wa~ In the hope oi securing the
introduced 12 years ago. BADGE-X project once again,
In addition to huge profits the company says it can meet
technical needs for the new
irom the BADGE-X project, the system with its independently �
makers are also zeroing ir, on developed computer knowhow.
technical spillover from the Also, Hitachi Ltd. last August
system apparently requiring ~ established a new research
the most advanced computer s e c t i o n f o r d e f e n s e
- knowhow. . technologies, geared to win the
The BADGE system controls BADGE-X contract.
_ the nationwide air radar net- Fijitsu Co. followed the move~
work through computers, and and is reported to consider
guides combat fighters to in- ~}~~~Iy tying up with U.S.
tercept unidentitied and enemy General Dynamics for the new
fighters, coming into territorial gpDGE business.
air space. These makers, plus Toshiba
The De[ense Agency said it Ltd. and Mitsubishi Electric
would pick up a contractor tor share the view that at stake
the project during fiscal 1981, surrounding the BADGE-X
after workin~ out designs ot the project is not onl�~ the 200 to 3U4
new BADGE computer system. billion yen business itself but
It is hoped the new BADGE ~]so the future business ot their
will be in operation until fiscal companies.
1984 in accordance with the
DA's middle-term detense _
buildup program.
COPYRIGHT: Mainichi Shimbunsha 1981
CSO: 4120
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SCIBNCE AND TECHNOLOGY
LATEST HIGH WATER ABSORPTION RESIN
Tokyo TECHNOCRAT in English Vol 13, No 11 Nov 80 pp 53,54
- [Text] One very intereating topic to appear recently in the chemical industry, is
that of a high water absorption resin. This resin can absorb water from some
hundred to 2,000 times as heavy as its own weight and retain it under a pressure
to some extent. Thus, it is attracting much attention. Although this resin is
at present finding limited applications such as in hygienic napkins, dehydrants
for waste oil and water retainers for agricultural soil, it is expected to be
made applicable in a wide variety of fields including paper diapers, gel bases
for aromatic essenses having the additional purpose of deodorization, water
retainers for transplantation of saplings, coagulants for sludge, heavy-metal
absorbents, hygienic materials for surgical operations, condensation-proof mate-
rials for ceilings, filters for artificial kidneys for controlling water content
= in blood and collapse accelerators for pills. In Japan, this resin was first
commercialized by Sanyo Chemical Industries, Ltd. Following this, such companies
- as Seitetsu Kagaku Co., Sumitomo Chemical Co., Japan Exlan Industries, Kao Soup
Co., Kuraray Co., the Nippon Synthetic Chemical Industry Co., Showa Denko, Nippon
Shokubai Kagaku Kogyo Co. and Nichiden Kagaku Co. have been in stiff competition
in commercialization of the resin. Only some of them have started actual commer-
cial operations, leaving many others still in the stage of developing products
and applications. Successful developments may be completed in a few years, which
will be an important period to these companies.
Here, current high-water absorption resin systems will be described with the prob-
lems about them to be taken up.
Water absorption resin systems vary in composition and function with the companies
making them. One from Sanyo Chemical Industries consists of a bridged polymer of
starch and acryl acid. In appearance, it is a white powder, with a specific grav-
ity of 0.3 and a pH of 7, and absorbs water appreciably by the second. The company
is promoting the construction of a plant having a capacity of 1,OOOt/year. A pro-
duct from Seitetsu Kagaku consists of a bridged polymer of acryl acid and has a
water absorption capacity of 400 times its weight. (A more recent product has a
capacity of 1,000 times.) It is a white powder (32-200 mesh) pH neutral. The
company is planning to construct a plant having a capacity of 1,000t/year. A
product from Sumitomo Chemicals consists of a copolymer of vinyl alcohol and acryl
acid. It has spheric granules with a particle diameter of 10-300~em, a water
absorption of some hundred to 1,500 times it weight; and has high strength. The
particular characteristics of this product is that its variants with different
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rates of water absorption and strength can be made by varying the percentage of
acryl acid in its composition. Furthermore, it can be produced in sheet and powder
fbrm by reprocessing with an additive of olefine resin. The company is developing
markets, while planning to increase production to 1,OOOt/year in 3 years. Japan
Exlan has commercialized a number of high-water absorption resin systems, fibrous
and powdered, using acrylonitrile, a material for acryl fibers, as a component.
Kao Soup is producing a system consisting of an acryl acid polymer with a water
absorption of 600 times. In addition, Showa Denko and Nippon Shokubai Kagaku
Kogyo have developed technology for producing acryl acid polymer systems and
DTichiden Kagaku, in cooperation with Sanyo Chemical Industries, starch-acryl acid
bridged polymer systems.
Ove~�seas, on the other hand, there are such companies as Henkel (1,800t/year) and
Su~erabsorbent (680t/year). Their products are all bridged polymers of starch and
polyacrylonitrile. Of course, other developments are being promoted elsewhere.
The greatest demerit of water absorbing resins is high price. Also, the drawback
of loss of water absorption by inclusion of salt. However, it seems they have a
bright future, though much time and labor is still required.
i
COPYRIGHT: 1980 Fuji Marketing Research Co., Ltd.
CSO: 4120
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SCIENCE AND TECHNOLOGY
BRIEFS
HEAT PUI~ USES SOLAR HEAT--Kajima Corp. has developed a heat pump system utilizing
, solar heat, which is used at its Shiko~CU branch. The system features solar heat
i and air heat absorption in winter and heat released to the open air and nigh t time
i radiation in summer, which annually can save electricity costs by 40%. Conventional
,i collector type solar heat utilization methods need auxiliary hear_ sources s uch as -
electricity or by burning oil. Gn the contrary, the newly developed system does
not neet any auxiliary heat source because of its full use of atmospheric heat and
night time radiation in addit~on to salar heat. [Text] [Tokyo TECHNOCRAT in
English Vol 13, No 11 Nov 80 p 57]
' NEW PAINT FOR OIL TANKS--A new surface coating treatment by Toyo Rubber Ind, has
been applied to a 100,000 km crude oi~ tank at th e Mizushima refinery, Okay ama
Ken, of Mitsubishi Oil. The paint, based on a corrosion resistant polyester resin
and containing glass flakes, was used on the bottom and sides of the tank. The
new coating has already been applied to surfaces totaling 30,000 square meters,.
- on ships, bridges, and tanks for petroleum products. In the case of crude oil
tanks, the new coating will cost twice as much as the conventional epoxy plus tar
products, but the time required for painting is shorter and life is estimate d to
be more than five times longer. [Text] [Tokyo TECHNOCRAT in English Vo1 13, No
11 Nov 80 p 82]
LEGAL PROTECTION OF SOFTWARE--The Software Industry Promotion Association will -
~ shortly start a"special committee for surveying legal protection of software." ~
~ The rapid circulation of software, particularly since 1980 has invited infri nge-
ments of use, such as copying and use without permission, and there have been
increasing opinions about the need for the legal protection of software. In
i response to this, the association has decided to establish a committee. I'irst,
! the association aims to prevent trouble in transaction, by preparing a model agree- -
ment stating the prohibition of copying and the responsibilities of software
houses including maintenance. Also, efforts are observed to make a request to
the government for new legislation to cover copyrighting of software. [Text]
[Tokyo TECHNOCRAT in~English Vol 13, No 11 Nov 80 p 74] ,
CAPTAIN SYSTEM TEST--The Ministry of Posts and Telecommunications is planning in
1981 to expand on a test scale the "CAPTAIN system" services which were started
in December 1979. First, the number of monitor terminals will be increased f rom
the present number of about 1000 to 2000. 2) The number of frames available by
monitors will be increa~ed to about Z00,000. The ministry already conducted a -
survey in May, 1980, questioning monitors about their use of time, and requesting
1~9
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information and opinions about rates when the system is made fu11y practical. It
considers that before the system can be advanced to such a stage, it will be neces-
sary to recognize how the system is utilized by including more monitors and in-
creasing the number of frames. Thus, the ministry has decided to f ind the possi-
bility of commercialization on the basis of connector data by carrying out these
steps. [Text] [Tokyo TECHNOCRAT in English Vol 13, No 11 Nov 80 p 72] -
CNC JIG GRINDING MACHINE--Mitsui Seiki Kogyo Co. has developed their 3-GBN type
CNC jig grinder. The machine is designed to satisfy the requirements of improved
accuracy and productivity from metal die manufacturing industry, with only compli- -
cated contour grinding and fine hole grinding being perf ormed by the machine. The
- features of the machine are as follows, (1) precision contour grinding is realized
with the CNC control, (2) for the first time in the world, automatic cycle grinding
is realized with electric automatic infeed equipment, (3) high precision positioning
accuracy with a fully closed loop system. A CNC grindin g machine is being marketed
by the Moor Co. (U.S.A.) and the development of the comp any is the second in the
world. Main specifications of the 3-GBN are: table area, 600 x 320mm; table
travel, 400 x 250mm; wheel spindle speeds, 9,000 ^'25,000 r.p.m.; positioning accu-
racy, X,Y � 0.002mm, C� 30 sec. [Text] [Tokyo TECHNOCRAT in English Vol 13, No
11 Nov 80 p 66]
!
SPECIAL PURPOSE CNC LASER MACHINING--Amada Company Ltd. has developed and begun ;
_ marketing their "LC-644" type special purpose laser mach ining machine with built
in computer numerical control equipment. The machine has been developed for an
expansion of the metal plate working section of the comp any. The macine is com-
posed the mechanical equipmer_t manufactured by Amada and a model 971 type C02 gas
laser oscillator (1.2 kw) manufactured by Spectra Fisique Co. (U.S.A.) The machine
is designed with emphasis on contouring plate cutting: the maximum cutting thick-
ness is 6.Omm and 3.Omm in carbon steel and stainless steel respectively, and the
maximum machining dimensions are 1,000 x 2,OOOmm. The company produces 10 ^'20 sets
of the machine a month and 50% of these are exported. For domestic users, the C02
gas laser oscillators are replaced domestically made ones. [Te~~t) [Tokyo TECHNOCRAT
in English Vol 13, No 11 Nov 80 p 66] _
COPYRIGHT: 1980 Fuji Marketing Research Co., Inc.
CSO: 4120 END
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