ORIX to Sign a Strategic Alliance Agreement with Shougang Group
TOKYO, Japan - September 20, 2018 - ORIX Corporation (“ORIX”) announced today to sign a strategic alliance agreement with Shougang Group. ORIX will collaborate with Shougang Group in diversified business fields including infrastructure management in China.
Established in 1919 and headquartered in Beijing, Shougang Group has experienced a history of nearly 100 years. At present, the Group has developed into a large-sized enterprise group centering on iron and steel and concurrently running businesses in financial sector such as commercial bank, lease, investment fund operation, public infrastructure sector such as car parking operation, hospital operation, and environment sector.
As the first step of the collaboration, ORIX made an investment in Shougang Concord International ("Shougang Concord"), which is a car parking operation and management subsidiary of Shougang Group, through ORIX Asia Capital Limited, the wholly owned investment arm of ORIX in the Greater China region. ORIX will hold 6.3% of Shougang Concord’ share after the investment.
The number of retained Chinese automobile was growing over 10% annually last 10 years and had reached 217 million by the end of 2017* and the number is estimated to be increased in the future. Parking price in China was regulated at low price by the government so that the operation and management of parking facilities industry was not developed well in past years. Cars parked in the streets cause to be a problem in society. Parking shortage is anticipated to reach 220 million in 2022. However, in 2015, the government announced the ease of parking price regulation and several stimulus packages to encourage the growth of this industry.
Leveraging both companies’ knowhow and strength in various business fields, Shougang Group and ORIX will consider business collaboration in a wide range of fields including but not limited to environment, medical, aged care industry and also will jointly develop potential investment in growing project.
* Source: 2017 China Car Parking Industry Development White Book
■Shougang Group Overview
Name: Shougang Group Co., Ltd
Address: Shijingshan Beijing Shougang factory East Gate
Name and title of representative: Zhang Gong Yan, Chairman and President
Description of business: Iron and steel manufacturing, Infrastructure development, Finance, Industry park development
Employees: Approximately 88 thousand (as of June 2018)
Subsidiaries/Affiliates: 544 companies (as of June 2018)
■Shougang Concord Overview
Listed on the main board of HKEX in 1991 and acquired by Shougang Group in 1992. Leveraging Shougang Group’s network, Shougang Concord has the strength on management of car parking located by public facilities, such as the operation right of car parking facilities at “Beijing Daxing International Airport”, and “Shanghai Hongqiao International Airport Terminal 1”. The investment capital will be used to expand the car parking business.
Name: Shougang Concord International Enterprises Co., Ltd.
Address: 7/F, Bank Of East Asia Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong
Name and title of representative: Zhao Tian Yang, Chairman
Description of business: Operation of car parking facilities, etc.
Major shareholders and their shareholding percentages: Shougang Group (52.9%)
Employees: 277 (as of August, 2018)
Listed: Hong Kong Stock Exchange (0697.HK)
Corporate Planning Department
ORIX Corporation (TSE: 8591; NYSE: IX) is an opportunistic, diversified, innovation‐driven global powerhouse with a proven track record of profitability. Established in 1964, ORIX at present operates a diverse portfolio of businesses in the operations, financial services, and investment spaces. ORIX’s highly complementary business activities span industries including: energy, private equity, infrastructure, automotive, ship and aircraft, real estate and retail financial services. ORIX has also spread its business globally by establishing locations in a total of 38 countries and regions across the world. Through its business activities, ORIX has long been committed to corporate citizenship and environmental sustainability. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of March 31, 2018)
Caution Concerning Forward-Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2017 – March 31, 2018.”