Mitsui & Co., Ltd. ("Mitsui," Head office: Tokyo, President & CEO: Masami Iijima) has signed an agreement with Plum Grove Pty Ltd ("Plum Grove"), a grain accumulator in Australia, for a 25% stake in Plum Grove. Mitsui subscribed to newly issued shares and also purchased shares from the existing shareholders.
Plum Grove is a grain accumulator based in Western Australia which accumulates wheat and other grains in Australia. One of the Plum Grove's strengths is its network with Australian farmers which provides it with a strong accumulation platform. Plum Grove aims to expand its handling volume in Western Australia and broaden out its business platform in other areas in Australia.
Mitsui commenced a joint operation in Western Australia with Plum Grove in October 2011 by financing Plum Grove's grain accumulation. Mitsui now purchases grains in Australia and exports them to offshore markets. Through the participation in Plum Grove, Mitsui will further strengthen its grain accumulation in Australia by operating in the grain growing areas in Australia. Mitsui will contribute to the Japanese market by providing Western Australian wheat for noodle and other grains with stability, and also expand its global distribution to the Asian and Middle Eastern markets where high growth in grain demand is expected. Moreover, Mitsui will look for opportunities to cooperate with the other shareholders of Plum Grove by way of Mitsui's capabilities in the food business as well as many other business fields.
With growing demand for grains all over the world, Mitsui will strengthen its ability to supply grains from its diversified grain originations. The grains from Australia have a complementary relationship with grains growing in the northern hemisphere and geographical advantages to the Asian and Middle Eastern markets. Mitsui will contribute to a stable grain supply from grain originations in North America, South America, Russia and Australia to Japan and other global markets.
Summary of Plum Grove
|Company Name||Plum Grove Pty Ltd|
|Location||Australia , Fremantle|
|Representative||Andrew Young, Chairman & Managing Director|
(After Mitsui's capital injection)
Pacific Agrifoods Investments Pty Ltd 25%
Seaboard Corporation 25%
|Business Activities||Collection and marketing of grains in Australia|
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