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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) made the decision to upgrade the facilities of Kaset Phol Sugar ("KSP"), a Thailand-based sugar manufacturing company that it operates jointly with Mitsui Sugar Co., Ltd. ("Mitsui Sugar", Head Office: Tokyo, President: Daisuke Saiga), in order to increase production capacity. Work on the project began on June 25. The total budget of approximately ¥37 billion will be procured through loans and capital increase. Completion is scheduled for October 2019.
The world sugar market is expected to maintain steady annual growth averaging 2%. Asia is the biggest market, accounting for 40% of world demand. However, the only sugar-producing countries capable of supplying markets reliably are Brazil, Thailand, and Australia. As a major sugar producer, Thailand's sugar business is gaining greater competitiveness because of its proximity to markets where sugar is in high demand.
Asian economies continue to expand, and their consumers are increasingly demanding reliable supplies of safe, high-quality sugar, and the business potential for high-quality sugar through the use of Japanese technology is increasing.
Mitsui and Mitsui Sugar acquired KSP (established in 1946) in 1994. Since then, the two companies have been jointly operating KSP for over 20 years. Mitsui and Mitsui Sugar will upgrade equipment at KSP to make full use of Mitsui Sugar's technical expertise for SPOON brand, which holds the largest market share in Japan. Through these efforts, Mitsui and Mitsui Sugar will respond to the growing demand for high-quality sugar in Asia and to increase profits, by establishing an integrated production and sales structure to supply high-quality sugar directly to users, especially beverage and food manufacturers in Asian markets.
KSP will also actively pursue business designed to make full use of sugar cane, including the expansion of "bagasse" power generation which utilizes crushed sugar cane residue as fuel. Through such efforts, KSP will strive to strengthen its earnings base, going beyond traditional sugar manufacturing, while ensuring appropriate consideration for the environment at the same time.
|Business entity||Kaset Phol Sugar Ltd.|
|Location of plant||Udon Thani Province, Thailand|
|Total cost of project||Approximately ¥37 billion|
|Production capacity||Approximately 300,000 tons of high-quality sugar per year (after completion)|