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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) has entered into an agreement with the Behn Meyer ("BM"), a major distributor of chemicals in Southeast Asia, concerning the establishment of a Singapore-based investment company, BMM Venture (S) Pte. Ltd. ("BMM-V"). An agreement was signed on 10 March 2016. BM has 175 years business records and Mitsui's business relationship with BM spans many years. Mitsui will acquire a 49% equity stake in BMM-V through Mitsui & Co. (Asia Pacific) Pte. Ltd.
Mitsui and BM have also reached an agreement through BMM-V with Myanmar Agribusiness Public Corporation ("MAPCO"), their local partner, to establish Agri First Co.,Ltd. ("AFC") to manufacture and distribute imported fertilizers in the Republic of the Union of Myanmar. Founded in 2012, MAPCO is a private sector company and it is seen as a key contributor to the development of agriculture in Myanmar.
With a land area about 1.8 times bigger than Japan's, Myanmar has around 2.8 times more farmland (*). Its climate and water resources are suitable for double-cropping. These factors are expected to drive rapid growth in the agricultural sector. Fertilizer demand in Myanmar is currently just over one million tons. This is equivalent to only one-fifth of the level in countries with similar farmland areas and crop types, such as Vietnam and Thailand, and demand is therefore expected to grow rapidly.
AFC plans to invest approximately ¥1.2 billion in the construction of a fertilizer manufacturing plant (including a warehouse and other ancillary facilities) with an annual capacity at the 100,000-ton level in the Thilawa Special Economic Zone. It aims to commence production at the new plant in May 2017. By combining BM's expertise and experience relating to the manufacture and distribution of specialty fertilizer, MAPCO's networks with agricultural business operators in Myanmar, and Mitsui's financing, logistics, procurement and marketing capabilities, which Mitsui has accumulated through its engagement in the fertilizer business, including the development of raw materials, logistics and sales, AFC will contribute to agricultural development in Myanmar.
Mitsui is orienting its business development efforts toward the consolidation of the Seven Key Strategic Domains identified in its New Medium-term Management Plan. This initiative will strengthen Mitsui's presence in the food and agriculture key strategic domain by expanding the business base in the area of agricultural materials.
Mitsui regards this joint establishment of the investment company with BM as an opportunity to strengthen its business operations in the area of fertilizers and agricultural materials in Myanmar and other Southeast Asian countries, in addition to its business initiatives in Japan, Europe, and North and South America. The specific goals are to accelerate the spread of scientific methods developed by Mitsui and BM independently, including guidance on fertilizer optimization based on soil and crop analyses, and to contribute to the development and growth of agriculture in Southeast Asia and the stable supply of food on a global scale.
Please scroll horizontally to look at table below.
Source: Ministry of Agriculture, Forestry and Fisheries website
|Name||BMM Venture (S) Pte. Ltd.|
|Establishment date||March 2016 (planned)|
|Shareholders||Behn Meyer Agricare Holding (S) Pte. Ltd. : 51%
Mitsui & Co. (Asia Pacific) Pte. Ltd. : 49%
|Name||Agri First Co.,Ltd|
|Location||Thilawa Special Economic Zone, Myanmar|
|Establishment date||April 2016 (planned)|
|Shareholders||BMM Venture (S) Pte. Ltd.: 60% (planned)
Myanmar Agribusiness Public Corporation: 40% (planned)
|Activities||Manufacture and distribution of fertilizers and distribution of imported fertilizers in Myanmar|
|Name||Behn Meyer Agricare Holding (S) Pte. Ltd.|
|Establishment date||1840 (establishment of Behn, Meyer & Co. as the forerunner of the Behn Meyer Group)|
|Representative||Khoo Su Chin, Managing Director|
|Activities||Holding company for fertilizers and crop protections businesses in the Behn Meyer Group|
|Name||Myanmar Agribusiness Public Corporation Ltd.|
|Establishment date||May 2012|
|Representative||Chit Khine, Chairman (representative of the Eden Group, Chairman of the Myanmar Rice Federation)|
|Shareholders||Numerous shareholders, led by Chit Khine (over 20%)|
|Activities||Business activities relating to the development of agriculture in Myanmar (rice milling, agricultural service centers, etc.)|
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.