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Mitsui & Co., Ltd. ("Mitsui", Head Office; Tokyo, President & CEO: Masami Iijima) executed an additional investment in SLC-MIT Empreendimentos Agrícolas S.A. ("SLC-MIT"), a large-scale agricultural production joint venture established in August 2013. SLC-MIT will use the increased equity to expand into the State of Mato Grosso, which is Brazil's biggest producer of soybeans.
SLC-MIT was established as a joint venture between Mitsui and SLC Agricola S.A. ("SLC," Head Office: Brazil), Brazil's largest agricultural production company. Last year SLC-MIT commenced production of soybeans and cotton on 22,000 hectares of leased land in the State of Bahia in northeastern Brazil. The total amount of the capital increase was US$22.5 million, of which Mitsui has invested $US11.2 million based on its shareholding ratio of 49.9%. SLC-MIT will use the equity to lease land owned by SLC in the State of Mato Grosso, which is Brazil's leading soybean growing region. Initially it will lease 16,000 hectares of land, which it will use to produce soybeans, corn and sunflowers. The area of land leased will increase to 18,000 hectares in the next crop year.
In 2011 Mitsui made the Multigrain Group its wholly owned subsidiary. Companies in the group include Agricola Xingu S.A. ("Xingu," Head Office; Brazil), which owns farmland covering an area of approximately 120,000 hectares, equivalent to about one-half of the Tokyo Metropolitan Area. Xingu produces non-genetically modified soybeans and other products, and Mitsui has established a stable supply of Xingu's safe and trustworthy grains to customers in Japan and other markets. Further, Mitsui is taking up the challenge of building its own distinctive agricultural management systems by exerting its integrated strengths by bringing together fertilizers, agricultural chemicals, IT and other business.
Through Xingu and SLC-MIT, the two mainstays of Mitsui's agricultural production business, we are determined to build a solid presence in the agricultural sector of Brazil, which is one of the world's leading food resource countries, and to contribute to the reliable supply of food to the world.
|Name of Company
|SLC-MIT Empreendimentos Agrícolas S.A.
|Porto Alegre, Rio Grande do Sul, Brazil
|Aurélio Pavinato (CEO)
|USD28 million (before increase) > USD50.5 million (after increase)
|SLC 50.1%, Mitsui 49.9%
|Main business activity
|Soybean, cotton, corn and sunflowers
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 possessed by 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.