Mitsui & Co., Ltd. ("Mitsui," head office: Chiyoda-ku, Tokyo, President & CEO: Masami Iijima) and Starzen Co., Ltd. ("Starzen," head office: Minato-ku, Tokyo, President: Ritsu Akiyama) have reached a basic agreement on a business partnership targeted toward the reinforcement of their value chain for the production, processing, manufacturing, distribution and sale of meat.
Starzen is one of Japan's biggest meat wholesaling and processing companies. Under its management vision of contributing to human happiness through food, it has built an integrated network linking production areas for meat and meat products with consumers' dining tables. Its aim is to achieve further enhancement of its business base by expanding the scale and improving the efficiency of its own production operations and by strengthening its sales and logistics networks.
One of the activities of Mitsui's Foods & Retail Business Unit is the importation and sale of feed raw materials. Through its affiliated companies and other related organizations, Mitsui is also involved in various aspects of the feed and livestock industry, including the manufacture and sale of compound feed, the processing, manufacture and sale of chicken meat, and the production and sale of breeding pig. Mitsui had been looking for ways to strengthen these activities and enhance its capabilities in the meat business.
Mitsui owns 2.53% of Starzen's shares, and there is also a history of business transactions between the two companies and their affiliated companies. The new business alliance reflects a convergence of strategies and objectives. Mitsui and Starzen will collaborate and share management resources, especially in pork business. Their goal for the future is to build a stronger integrated value chain spanning all stages from production to sales to ensure the reliable supply of superior pork and related products with an emphasis on safety and consumer confidence.
Overview of the Business Alliance
- Collaboration on production
(1) Reinforcement of a strategic, reliable procurement network through the expansion of pig farming infrastructure
(2) Efficient operation of pig farms
(3) Development of new pork brand
- Collaboration on sales
(1) Sharing of sales networks of Mitsui and Starzen and their respective affiliated companies
(2) Cooperation with food manufacturers
- Collaboration on logistics
(1) Establishment of new logistics bases
(2) Sharing of logistics bases of Mitsui and Starzen and their respective affiliated companies
Development of joint ventures in overseas markets
Mitsui and Starzen will now establish a project team to formulate specific individual measures.
As stated in information disclosed to the Tokyo Stock Exchange on September 21, Starzen will today acquire a private placement of new shares by Prifoods Co., Ltd. (head office: Hachinohe City, Aomori Prefecture, President & representative director: Kenji Shirasaki), a Mitsui subsidiary involved in the production of chicken meat. Mitsui and Starzen also plan to expand their collaboration in the area of chicken meat.
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
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