Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) and Starzen Company Limited ("Starzen", Head Office: Tokyo, Chairman, President & CEO: Tsuyoshi Nakatsuhama), agreed to establish a joint venture (JV) for processing and sales of livestock and marine products in China, and on June 18, 2019 signed a three-way JV agreement together with a local China partner. JV operations are scheduled to begin from September this year.
China is the world's largest importer of livestock and marine products, and increasing demand stemming from population growth combined with domestic supply limitations means that future demand for imported products is expected to grow particularly strongly. Mitsui has been paying close attention to this demand for livestock and marine products in China for some time, and has been engaged in the import and sale of beef and other products via its China branch. With the establishment of this JV, Mitsui will utilize its global network and business management knowledge, as well as Starzen's expertise in the meat distribution business, to develop an integrated framework spanning from raw material procurement through to processing and sales, and deliver high value-add products and locally-rooted sales services to the China market.
Mitsui and Starzen first formed a business alliance in 2010, and later a capital alliance in 2016. Since then the two companies have been jointly promoting their meat business in local and international markets. In its Medium-term Management Plan, Mitsui has identified Nutrition and Agriculture as a new growth area, and the new JV is part of initiatives being carried out in this area.
There is an upward trend in global demand for high quality, sustainable proteins, not only in Europe and the US, but also in China and other parts of Asia where there is population growth and expansion of the middle class. Through this investment, Mitsui will continue its efforts to improve productivity, stability and sustainability of supply, while adding values to food products.
|Company name||San Chuang Enterprise (ShenZhen) Limited (planned)|
|Headquarters||Shenzhen, Guangdong Province, China|
|Paid-in capital||CNY30 million (approx. JPY500 million)|
|Investment ratio||Mitsui 55%, Starzen 25%, China partner 20%|