Japan's big five trading houses to sell off assets

Tokyo

JAPAN's big trading houses, stung by large asset writedowns in the wake of the global commodities slump, plan to step up asset sales and wind back investment spending by up to US$10 billion over the next three years.

The changes will mean reduced spending on energy and minerals projects, and a tighter rein on growth as existing assets are sold to help fund expansion in areas ranging from autos to power infrastructure, medical services and food. "In the wake of hefty writedowns, the top five trading firms have now all shifted their focus on how to generate cash or cash management," said SMBC Nikko Securities' senior analyst Akira Morimoto.