Mission Statement

U.S. Power Equipment/Services Mission to Japan

Tokyo, Nagoya, and Osaka, May 18-22, 1998

Mission Description:

This trade mission is designed to provide a key opportunity for U.S. suppliers of equipment and services for the generation, transmission, and distribution of electric power to sell to Japan's ten regional power companies which represent an estimated annual market of USD 25 billion in non- fuel procurement. With venues in Tokyo, Nagoya, and Osaka, the mission will include all ten regional power companies and the major Independent Power Providers grouped together on a geographical basis. Marjory Searing, Acting Assistant Secretary and Director General of the U.S. and Foreign Commercial Service, ITA, will lead the mission.

Commercial Setting:

The Foreign Commercial Service at the U.S. Embassy in Tokyo has targeted Japan's market for equipment/services for power generation, transmission, and distribution as a high priority sector for U.S. suppliers. Despite Japan's current economic doldrums and weakened yen, the Japanese power equipment market will continue to represent excellent opportunities for U.S. suppliers well into the next century. Japan's ten regional power companies are the engines for economic growth in their respective regions with non-fuel, annual procurement of goods and services valued at approximately USD 25 billion. The power companies project annual increases of energy consumption in Japan at 2-3 percent annually over the next decade, and a number of new power facilities are in various stages of planning and development. With the Government of Japan's expectation that the utilities will reduce their rates to be commensurate with international rates by the year 2001, the utilities are seeking products and technologies that will help achieve operational efficiencies and reductions in the costs of generation, transmission, and distribution of electric power.

Recent deregulation in the market has allowed for the introduction of independent power companies that sell power to the regional power companies on a wholesale basis. Further deregulation is expected to introduce gradually more competition into the market. Moreover, environmental concerns are beginning to shape the Government of Japan's policies in regard to the utility industry that will be reflected in the utilities' future operations and development of facilities and should provide key opportunities for U.S. suppliers with appropriate technologies.

U.S. companies' share of total Japanese power company procurement is less than 5% of total procurement; however, this amount represents over 80% of total procurement of foreign goods and services. In establishing a presence in the market, U.S. firms have consistently faced many market access barriers which still remain. Nonetheless, further deregulation coupled with the urgent need to reduce costs and become more globally competitive are factors that augur well for increased U.S. market share in this important, consistently strong Japanese market.

Mission Goals:

The mission goals are (1) to increase U.S. power equipment/services sales to Japan's regional power companies and Independent Power Producers through enhancing U.S. firms' knowledge of procurement plans and practices, through one-on-one and group meetings with procurement officials and engineers, and through establishing long-term business relationships; (2) to provide a high-profile opportunity for U.S. participants to gain exposure in and further access to this market through meeting key decision-makers; and (3) to provide general advocacy for all mission participants in support of their efforts to overcome the formidable market barriers that U.S. firms face in this market.

Mission Scenario:

The mission will visit Tokyo, Nagoya and Osaka during the week of May 18-22, 1998. US&FCS Tokyo will provide an extensive market briefing and will arrange for power company presentations on procurement, a presentation on deregulation, a power company site visit, and one-on-one appointments for U.S. participants to meet with power company procurement officials and engineers. CS Tokyo will also arrange for a business reception that will provide a key opportunity for U.S. participants to meet with high-level power company executives and with relevant government officials. The Commercial Service in Nagoya and Osaka will arrange one-day programs featuring group meetings with their respective regional power companies to be followed by business receptions to meet key government and industry decision-makers.

Timetable:

The U.S. Power Equipment/Services Mission to Japan will begin in Tokyo on Monday, May 18, 1998, with a one-day seminar that will include market briefings, presentations on power companies' procurement plans and procedures, and accounts of U.S. companies' successes and challenges in the market. The program will continue in Tokyo on Tuesday, May 19, and Wednesday, May 20, with the U.S. participants' one-on-one meetings with power company executives and visits to power facility sites. The delegation will then travel to Nagoya on Thursday, May 21, for group meetings with area power company representatives. The mission will conclude in Osaka on Friday, May 22, with a final day of group meetings.

Recruitment promotion for this trade mission will include but not be limited to the following venues: the Export Assistance Centers; Business America Magazine; relevant trade publications; relevant industry associations; and the American Chamber of Commerce in Japan. The event will also be listed on the ITA and US&FCS Tokyo home pages, as well as the TPCC Calendar of Events.

Criteria for Participation:

• Relevance of the company's business line to mission goals;
• Potential for sales to Japan's power companies;
• Old-to-market, New-to-market firms, and New-to-export firms are all eligible;
• Timeliness of company's completed application and payment of the participation fee (est. at $2900);
• Certification that the company's products and/or services are manufactured or produced in the United States, or if manufactured/produced outside of the United States, the product/service must be marketed under the name of a U.S. firm and have U.S. content representing at least 51% of the value of the finished good or service.
• Eligible companies will be accepted on a "first come, first serve" basis up to the mission maximum limit of 30 participating companies.
• Deadline for completed applications is April 20, 1998.

Any partisan political activities of an applicant, including political contribution, will be entirely irrelevant to the selection process.

Initial decisions on private sector participants will be made by a group comprised of a minimum of three Commerce Department officials drawn from the following pool: the project officer or mission team leader, Department experts from the relevant industry and country sectors, the career Commercial Service Senior Commercial Officer based in the country to be visited for market relevance, and the Office of Business Liaison.

The recommendations of this group will be reviewed and adopted/disapproved by a five person review board consisting of t he Chief Financial Officer and Assistant Secretary for Administration, the Acting Assistant Secretary for Trade Development, a senior career lawyer in the Office of General Counsel, a senior ITA career official and the Director of the Office of Business Liaison.

Contact Information:

Julie Snyder, Project Officer

Nicole Melcher