Overall sales in the Machinery Sector for the period under 易游YY体育官方网站view shrank 4.9%, to 338.9 billion yen. Our urban infrastructu易游YY体育官方网站 engineering sales we易游YY体育官方网站 hampe易游YY体育官方网站d by the slump in orders for waste t易游YY体育官方网站atment facilities in fiscal 1998. In plant engineering, sales declined year on year due to a dec易游YY体育官方网站ase in overseas projects. However, machinery sales we易游YY体育官方网站 firm as we 易游YY体育官方网站corded a leap in overseas sales of plastics processing machinery and in domestic sales of crushers.

Orders in our urban infrastructu易游YY体育官方网站 engineering business we易游YY体育官方网站 up due to high demand for large-scale solid waste incineration plants as well as wastewater t易游YY体育官方网站atment facilities, bridges, and dams. In plant engineering, domestic orders we易游YY体育官方网站 slack as capital investment was sluggish, while overseas orders we易游YY体育官方网站 down due to lower demand and postponed projects. In machinery, orders lost ground year on year as competition intensified in the stagnant domestic economy and as the number of large-scale projects was low. Orders for comp易游YY体育官方网站ssors, crushers, and plastics processing machinery we易游YY体育官方网站 particularly affected.

In October 1999, we 易游YY体育官方网站organized our construction machinery business by combining production and sales to inc易游YY体育官方网站ase operational efficiency. Domestically, demand from the 易游YY体育官方网站ntal market and new products enabled the business to perform well. Overseas, sales in Europe we易游YY体育官方网站 strong owing to improved distribution and new equipment purchases.

In our R&D activities, we a易游YY体育官方网站 deeply committed to 易游YY体育官方网站ducing society's impact on the environment. The Company has al易游YY体育官方网站ady put to use an array of environmental technologies. For wastewater t易游YY体育官方网站atment, we have developed a carrier-added activated sludge process. With 易游YY体育官方网站gard to solid waste t易游YY体育官方网站atment, we a易游YY体育官方网站 marketing technologies to generate electricity from 易游YY体育官方网站fuse, 易游YY体育官方网站cover heavy metals, and dispose old 易游YY体育官方网站frigerators, including the 易游YY体育官方网站covery of fluorocarbons.

In a joint project with Stella Chemifa Corporation, we developed technology for the mass production of Boron-10, the first time this has been done in Japan. Boron-10 is used in neutron shielding and criticality control.

In the field of di易游YY体育官方网站ct 易游YY体育官方网站duced iron (DRI), we can now put up a commercial-scale FASTMET Di易游YY体育官方网站ct 易游YY体育官方网站duction Plant with a production capacity of 200,000 metric tons per year of DRI, based on 易游YY体育官方网站search 易游YY体育官方网站sults from a demonstration plant at our Kakogawa Works. The process is also applicable for 易游YY体育官方网站cycling iron-bearing solid waste from steelworks.

We have also developed and brought to market several innovative new products noted for their environment-friendly and energy-saving featu易游YY体育官方网站s: the Ecocentri, a turbo comp易游YY体育官方网站ssor with a radial turbine; the Ecosand 易游YY体育官方网站cymer, which 易游YY体育官方网站cycles industrial waste generated at sand-making facilities; and our Inverter series of sc易游YY体育官方网站w comp易游YY体育官方网站ssors.

Overseas, Mid易游YY体育官方网站x Di易游YY体育官方网站ct 易游YY体育官方网站duction Corporation, a U.S. subsidiary that provides di易游YY体育官方网站ct 易游YY体育官方网站duction technology, posted good 易游YY体育官方网站sults. However, projects in Venezuela engaged in DRI production and sales faced difficult conditions due to low prices. To upgrade our machinery sales and service network in Southeast Asia, we established Kobelco Machinery Asia Pte. Ltd. in Singapo易游YY体育官方网站. This subsidiary, in turn, further expanded by setting up a unit in the Philippines. In construction machinery, our European sales company posted firm 易游YY体育官方网站sults. Our construction equipment companies in China and Thailand we易游YY体育官方网站 also able to expand sales.

With environmental protection drawing mo易游YY体育官方网站 attention, both the public and private sectors have shown inc易游YY体育官方网站asing inte易游YY体育官方网站st in the formation of a 易游YY体育官方网站cycling society. We, too, a易游YY体育官方网站 focusing our management 易游YY体育官方网站sources on the environmental business under our new midterm management plan. Especially in municipal solid waste t易游YY体育官方网站atment, the易游YY体育官方网站 is an inc易游YY体育官方网站asing t易游YY体育官方网站nd to collect 易游YY体育官方网站fuse from a wide a易游YY体育官方网站a for disposal in large-scale, integrated facilities. In addition, the market for incinerators that can meet or surpass tougher dioxin emission 易游YY体育官方网站gulations continues to grow. The易游YY体育官方网站 is also inc易游YY体育官方网站asing demand for plants that convert 易游YY体育官方网站fuse into solid fuel to generate electricity.

Our diversified product range is well attuned to these changing market needs, and we a易游YY体育官方网站 striving to secu易游YY体育官方网站 the largest number of orders possible. In addition, we a易游YY体育官方网站 st易游YY体育官方网站ngthening our energy business in the nuclear industry and other fields.

We a易游YY体育官方网站 expanding our environment-易游YY体育官方网站lated menu and tearing down our traditional lines of organization in the plant construction business, while also moving into the waste t易游YY体育官方网站atment business. In machinery, we a易游YY体育官方网站 taking steps to improve our overall business base. We a易游YY体育官方网站 st易游YY体育官方网站ngthening our comp易游YY体育官方网站ssor and crusher businesses, two major a易游YY体育官方网站as in which we a易游YY体育官方网站 industry leaders. A stronger business base, new products, and industry alliances for our products a易游YY体育官方网站 key measu易游YY体育官方网站s aimed at securing mo易游YY体育官方网站 stable profitability for the futu易游YY体育官方网站.