Mitsubishi Monitor

2023.11.16

Mitsubishi Corporation Collaborates with Choshi City for Community Development—Using EX and DX to Leverage No. 1 Fish Landings in Japan

Having reached a collaboration agreement with the City of Choshi in Chiba Prefecture, Mitsubishi Corporation (MC) is working on regional revitalization using integrated energy transformation (EX) and digital transformation (DX) initiatives.

Aiming to remake itself as a sustainable city that uses its abundant natural resources to best effect, Choshi City in Chiba Prefecture has established a comprehensive roadmap for redevelopment, a zero-carbon vision, and a DX promotion plan.

Meanwhile, in December 2021, bids were publicly solicited for Japan’s first large-scale offshore wind power generation projects, located off the coast of Noshiro City, Mitane Town and Oga City in Akita Prefecture, off the coast of Yurihonjo City, also in Akita Prefecture, and off the coast of Choshi City in Chiba. Mitsubishi Corporation Consortium, represented by Mitsubishi Corporation, won the bidding process.

Having announced its “Midterm Corporate Strategy 2024—Creating MC Shared Value” in May 2022, MC has been promoting specific initiatives, including creating new carbon-neutral industries and developing vibrant collaborative communities, for regional revitalization. These initiatives led to the signing of an agreement between MC and Choshi City on collaboration and cooperation to solve regional challenges and work for further regional development.

Establishing the Choshi Branch to put down roots in the community and generate a flow of manpower, goods and financing

The joint initiative set out six scopes of collaboration: use of digital technologies to revitalize and rebuild safe and secure local communities; use of digital technologies and others to enhance services for local citizens in the fields of energy, mobility, infrastructure and others; construction of a data-connectivity platform aimed at enhancing services for local citizens; building of a net-zero city through the use of renewable energies and other advances; use of digital technologies and other means to enhance education and culture; and reinvigoration of tourism and other regional industries.

Rather than entrust the initiative to a group company or try and tackle issues one business trip at a time, MC sought to put down roots in the local community. To this end, it established its Choshi Branch in November 2022. General manager of the branch Koji Shirai provides examples of the projects undertaken.

“One of our initiatives is about the diversification of primary industry, which means farmers and fishery operators not only producing products but also getting involved in manufacturing, processing and sales to improve the value of their products and thereby improve their income and diversify their operations,” he says. “Choshi is a very productive city, boasting agriculture and a fishing industry, but its vegetables and fish are promptly transported to large consumption areas, making it difficult to create added value in the local community. Creating added value in Choshi to keep profits in the local community leads to the creation of new industries and increases job opportunities, which facilitates the flow of manpower, goods and finance. To take an example of the fisheries industry, the Choshi Fishing Port has been Japan’s No. 1 in terms of the volume of landings for 12 consecutive years. We are considering initiatives for translating how to eat and how to process locally caught sardines and mackerel into industries.”

In agriculture, Choshi is a designated producer of cabbages and Japanese radishes. Conventional practice is to not harvest non-standard produce but to instead dispose of it or compost it. To find a use for non-standard cabbages as an ingredient, a farmer and a gyoza dumpling manufacturer joined forces to come up with the Afro Cabbage Gyoza. MC and its group company Lawson supported the promotion of sales and the product is now sold at Lawson stores in Choshi City. Lawson is also planning to open a store that can be run with less manpower. The store will primarily handle frozen food, minimizing boxed lunches and other food items that spoil rapidly, to address the issue of “shopping refugees.”


Additionally, MC and the city introduced a service to provide information on sightseeing spots and more via the LINE Tourism Passport on a trial basis. Launched at the Choshi Port Festival in August, the service forms part of a greater effort to entice foreign tourists to visit Choshi.

In addition to offshore wind power generation, MC and the city will work on solar power generation and onshore wind power generation to pursue local production for local consumption of renewable energy. MC has a track record in offshore wind power generation, having participated in projects in Europe since 2013.

“An offshore wind power generation project occupies a marine area for 30 years—a long time,” says Shirai. “Therefore, we believe that broadening the base of the supply chain and related industries to win support among more local companies for construction and operation will help ensure the long-term stability of the project. Under the philosophy of prosperous coexistence with the local community and the fisheries industry, we plan to hold events to match up local companies with offshore wind power generator manufacturers, offshore engineering companies and onshore construction companies, with the aim of encouraging local companies to participate, wherever possible, in procurement, operation and maintenance of construction equipment over the project period. We will also contribute to a fund to be established in the community and consider and implement measures for cooperation and coexistence with the local community and the fishing industry in a transparent manner through discussions with local government authorities and related fisheries operators.”

Smoothing the way forward together with the local business community

Since its foundation, MC has made it its business to understand the changes occurring around the world, to address social issues and needs, and to continuously create new businesses to develop the economy and improve everyday life.

“Business abroad has been a major part of our company’s operations for many years, but if Japan, our base, weakens or wilts, we plunge into crisis,” says Shirai. “We want to energize Japan by applying our diverse businesses to various local issues. I have heard locals say, ‘DX is difficult’ or ‘Trying something new is impossible.’ We have addressed their concerns by clearly describing why we are doing what we are doing. As a result, an appetite for taking on new challenges is slowly emerging.”

In Choshi City, the population is about 55,000 at present but it has been decreasing on the order of thousands of people every year. It is true that business under these circumstances is very difficult.

“No single project is big in scale, but we nevertheless hope to give a boost to the greater local economic zone, including the surrounding areas, rather than exclusively to Choshi,” Shirai explains. “It’s rewarding to have local people thank us for establishing our branch in Choshi. Rather than urging things forward unilaterally, we think about what we can do in partnership with local businesspeople who will be responsible for the next generation of projects. The resulting new waves will smooth the way forward for the future of this community. I believe the effort is very significant.”

Shirai himself lives in Choshi. Aiming to grow with the local community while resolving local challenges, he talks with local people every day.

INTERVIEWEE

KOJI SHIRAI

Choshi Branch General Manager

Mitsubishi Corporation

2-3-1 Marunouchi, Chiyoda-ku, Tokyo
Founded in 1954, MC engages in a wide range of businesses spanning multiple industries. It is comprised of the Industry Digital Transformation Group, Next-Generation Energy Business Group and 10 industry-specific Business Groups: Natural Gas, Industrial Materials, Chemicals Solution, Mineral Resources, Industrial Infrastructure, Automotive & Mobility, Food Industry, Consumer Industry, Power Solution, and Urban Development.