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Mitsui to Participate in grain collection business in Heilongjiang, China

Feb. 8, 2012


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Mitsui & Co., Ltd. ("Mitsui," head office: Tokyo; President and CEO: Masami Iijima), Chinese Heilongjiang Nongken Beidahuang Trade Group Co.,Ltd. ("BDH Trade") and its wholly owned subsidiary Beidahuang Grain Logistics Co.,Ltd. ("BDHGL") have reached an agreement that newly issued equity shares of BDHGL will be allocated to Mitsui. The three parties concerned have signed the related contracts ("Transaction Documents").

Under the Transaction Documents, there are a number of conditions that must be met prior to Mitsui subscribing for the newly issued equity shares, including the relevant approvals being obtained from the Chinese Government. After these conditions have been fulfilled, Mitsui will acquire a 40% equity share of BDHGL. Through this transaction, Mitsui will participate in grain (such as corn and soybean) collection, storage, logistics and trading business in Heilongjiang, which is one of the largest grain producing areas in China.

BDH Trade is a state-owned enterprise and wholly owned by Heilongjiang Beidahuang Agricultural Holding Corporation, a subsidiary of the Ministry of Agriculture.
BDH Trade handles grain, agricultural products, agricultural machines, fertilizers and petroleum. BDHGL has many grain collection sites, most of which are located in Heilongjiang, and in 2011 handled 1.61 million tons of grain. BDHGL will expand its grain collection facilities by using Mitsui's injected capital. It aims to handle 5 million tons of grain and to achieve around 10 billion CNY sales by 2015.

The global demand for grain is expected to increase as world population grows and as emerging countries continue to develop. Mitsui sees the grain business as a core business and hopes to achieve sustainable supply of grains from the United States and Brazil to Asia and other markets. China is one of the largest grain producing countries in the world and its demand for (i) soybeans for oil and (ii) corn for feed purpose is growing enormously. Mitsui is endeavoring to participate in this emerging market through the setting up of a joint venture company with the New Hope Group, the largest feed maker in China, to handle feed materials.

Through participating in the grain collection business in Heilongjiang, Mitsui believes it can secure an optimum and sustainable grain supply source predominantly for the Chinese domestic market.

Summary of each company

Heilongjiang Nongken Beidahuang Trade Group Co.,Ltd (BDH Trade)

Year of establishment 2002
Head office location Heilongjiang, People's Republic of China
Shareholders Heilongjiang Beidahuang Agricultural Holding Corporation 100%
Business activities handling grain, agricultural products, agricultural machines, fertilizers and petroleum

Beidahuang Grain Logistics Co.,Ltd (BDHGL)

Year of establishment 2008
Head office location Heilongjiang, People's Republic of China
Shareholders BDH Trade100%
Number of employee 400
Business activities grain collection, storage, logistics and trading
Sales 3.6 Billion CNY (FY2011)
Grain Handling volume 1.61million ton (FY2011)

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Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs 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, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

Information

For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Kayo Kobayashi
Telephone: +81-3-3285-7618
Facsimile: +81-3-3285-9819