Regional Revitalization

ORIX contributes to the revitalization of local communities through concessions business, agriculture business, Japanese inn management business (ryokan), etc. In airport management, as a concession business, we are working to increase activity and tourism demand in cooperation with local companies and governments.
In the agriculture business, we aim to contribute to the development of agriculture in Japan by designing business models that incorporate new operation systems such as large hydroponic cultivation facilities and plant factories with artificial light. In addition, in managing the inns, especially regarding the renovation of historic ryokan in various areas, we are focusing on continuously employing local employees and are working on creating attractive facilities that contribute to a greater number of tourists.

Concession business

In the concession business, private enterprises are responsible for the operation of public facilities such as airports, roads, water supply and sewerage, while public entities retain ownership. The Japanese government is promoting concessions to revitalize the economy and enhance fiscal soundness, and ORIX is energetically addressing Japan’s social issues of aging infrastructure and population decline.
Our first concession business was the operation of Kansai International Airport and Osaka International Airport (Itami Airport), which was the first full-fledged airport management business by the private sector in Japan. Kansai Airports, established by a consortium led by ORIX and VINCI Airports of France, took over the operation of both Kansai International Airport and Osaka International Airport from New Kansai International Airport Company on April 1, 2016.
In addition, we began the operation of Kobe Airport from April 1, 2018 through our subsidiary. The operation period of Kansai International Airport and Osaka International Airport is 44 years and for Kobe Airport is 42 years. We aim to balance our social responsibility with our creative ingenuity and dynamism to continuously develop the three airports and the Kansai region where these airports are located.
Adding more routes and passengers requires enhancing the attractiveness not only of the airports, but also of the surrounding areas. Kansai Airports is constantly enhancing its airport facilities and collaborating with local businesses and governments to increase business and tourism demand.
In Hamamatsu City, Shizuoka Prefecture, the operation business of the Hamamatsu City Public Wastewater Treatment Plant (Seien Area), the first domestic concession business in the water supply and sewerage sector, began on April 1, 2018. The operating company is Hamamatsu Water Symphony K.K. (HWS), which was established by ORIX and local companies as well as the Japanese subsidiary of Veolia of France, with a project duration of 20 years. We aim to maximize the expertise of each HWS shareholder company and to provide safe and secure sewage services to citizens. In addition to promoting the reduction of environmental burdens pursuant to our environmentally conscious business management policies, we are also planning measures to realize a sustainable society in Hamamatsu City, such as participating in activities supporting regional industry and events.

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Agriculture business

ORIX expects that regulatory reform and changes in the operating environment will make agriculture a growth business over the long term. We intend to contribute to the development of regional economies through a highly competitive, high-value-added agriculture business.

ORIX Agriculture (Established in February 2014)
In Hyogo Prefecture, we effectively use a closed school building to operate a plant factory that grows lettuce and other vegetables using completely artificial light. The interior of the factory is sealed off from the outside atmosphere, which enables cultivation without agricultural chemicals due to the reduced risk of contamination and makes the factory resilient to the effects of the seasons and weather. Moreover, the small number of viable bacteria enables vegetables with nutritional value with lower washing costs and environmental loading. Production is stable and highly efficient because replant failure is not an issue.
We have created employment in a depopulated area by making effective use of a closed school, and we are producing and consistently supplying safe, reliable and delicious vegetables using rigorous sanitation management.

ORIX Yatsugatake Farm (Established in April 2015)
In Nagano Prefecture, we established an agricultural corporation in cooperation with Honda Engei Co., Ltd. to produce leafy vegetables such as spinach in hydroponic cultivation facilities using natural light. We control the environment and manage nutrient solutions in the greenhouse to enable 19 efficient harvests throughout the year regardless of the season while creating stable jobs for the community. We employ the ORIX Group’s sales network to sell the vegetables produced directly to customers such as retailers, restaurants, and food manufacturers. We intend to establish a more stable production system and an efficient direct distribution and sales model without going through the market, thereby contributing to the local community and expanding regional employment through the revitalization of agriculture.

Yabu Farm (Established in June 2015)
We established Yabu Farm Corporation, an agricultural production corporation, with Yabu Partners Corporation, a wholly owned corporation of Yabu City, Japan Agricultural Cooperatives Tajima, and local agricultural producers in Yabu City, Hyogo Prefecture, a national strategic special zone known as a mountainous and intermountain agricultural reform district. Yabu Farm has a cooperative system that integrates production, sales and logistics in Yabu City, and is building a new agricultural business model in a disadvantaged mountainous and intermountain area.
Approximately 73% of Japan’s land area and 40% of the land under cultivation is located in agriculturally disadvantaged mountainous and intermountain areas. Yabu Farm has become a model agricultural business for such areas throughout Japan, which face issues similar to those of Yabu City. Yabu Farm produces safe, reliable and delicious vegetables through new supply chains and makes agriculture more profitable while promoting further revitalization of communities.

Smart Agriculture IWATA (Established in April 2016)
A joint venture with Fujitsu Limited and Masuda Seed Co., Ltd. in Shizuoka Prefecture, Smart Agriculture IWATA Co., Ltd. has the goal of agriculture-based regional revitalization. It produces tomatoes, bell peppers, kale and other vegetables in a large-scale, controlled environment facility that uses information and communication technology. The project employs sensors, big data, AI and other technologies to increase the productivity and quality of agricultural products and create a new food and agricultural value chain business model that ranges from seedlings, production and processing to shipping, sales and more. Our goal is to collaborate intensively with the local city of Iwata to contribute to the regional economy through regional branding and the creation of stable employment.

Foundation Name of Corporation Manufacturing Location Investment Ratio Business Summary
February 2014 ORIX Agriculture Corporation Yabu City, Hyogo Prefecture ORIX 100% Plant factories with artifical light
April 2015 ORIX Yatsugatake Farm Corporation Fujimitown, Suwa County, Nagano Prefecture ORIX 97%
HONDA ENGEI 3%
At a hydroponic cultivation facility, cultivate leafy vegetables such as spinach, edible chrysanthemum, watercress, rocket
June 2015 Yabu Farm Corporation Yabu City, Hyogo Prefecture ORIX Agriculture 46%
Tajima Agricultural Cooperatives Tajima 17%
Yabu Partners 3%
Local Farmers 34%
Cultivate green pepper and rice in open field cultivation. At a hydroponic cultivation facility, cultivate leafy vegetables such as spinach and edible crysanthemum
April 2016 Smart Agriculture Iwata (SAC iWATA) Co.,Ltd Iwata city, Shizuoka Prefecture Fujitsu 51%
ORIX 39%
Masuda Seed 10%
Cultivate leafy vegetables such as tomato, bellpepper and keel at an ICT-based, controlled- environment cultivation facility

In July 2016, we established ORIX Food Supply for fruit and vegetable distribution, and through this company, we are also engaged in the purchase and sales of fruits and vegetables, with a particular focus on vegetables produced in-house.
Furthermore, in July 2017, we entered into a capital and business alliance with Farmind Corporation which builds fruit and vegetable distribution networks nationwide. On the back of Farmind’s expansive and multifunctional logistics network, and based on the appropriate temperature controls, we use Cold Chain* systems to sell fruits and vegetables to retailers and food service providers throughout the country.

  • Cold chain is a form of distribution wherein products are kept at low temperatures while being transported from producers to consumers.

Operation of Japanese Inns

Since entering the Japanese inn business in 2002, ORIX Real Estate has been involved in the operation of nine hot spring resorts. Our business of rehabilitating long-established Japanese inns in various locations has emphasized protecting the jobs of local employees. Moreover, the increased number of guests drawn by investment in new facilities and improved service levels has also helped to vitalize local economies by increasing the number of tourists.

Seven Japanese Inns with Hot Springs Operated by ORIX Real Estate
Name Address Opened Number of Rooms Capacity
Beppu Suginoi-Hotel Beppu City, Oita Prefecture September 2002 647 2,914
Onyado Toho Aizuwakamatsu City, Fukushima Prefecture June 2004 160 860
Ohtsuki Hotel Wafuukan Atami City, Shizuoka Prefecture November 2005 28 120
Hotel Micuras Atami City, Shizuoka Prefecture January 2007 62 196
Unazuki Yamanoha*1 Kurobe City, Toyama Prefecture June 2014 141 846
Hotel Banso Hokkaido City, Hokkaido October 2015 91 328
Hakone Ashinoko Hanaori Ashigarashimo County, Kanagawa Prefecture August 2017 154 496
Naruko Hotel*2 Osaka City, Miyagi Prefecture December 2006 128 550
Tateshina Grand Hotel Takinoyu*3 Chino City, Nagano Prefecture September 2011 154 721
  1. Changed from "Unazuki Suginoi Hotel" in September 2018
  2. ORIX began supporting Naruko Hotel from December 2006. The former management team reacquired hotel business rights and assets as of October 31, 2011 and completed the rehabilitation.
  3. ORIX begun supporting Tateshina Grand Hotel Takinoyu from September 2011. The hotel business was transferred in April 2019.
Beppu Suginoi Hotel after ORIX Investment
  Operation Rate Number of Overnight Guests Initiatives
2003 52% 251,000 Open air bath “Tanayu”
2008 68% 345,000 Buffet restaurant
2015 100% 628,000 Direct marketing
2016 100% 670,000 Theater type buffet restaurant
2017 91% 641,000 Open-air buffer restaurant
2018 97% 699,000 Fitness center (Gold's Gym)
  • Decrease from previous year due to the effect of the Kumamoto earthquakes in April 2016.

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