May 25, 2007

 

Mitsubishi Corporation to pour US$222 million to raise stake in Nosan feed

 

 

Mitsubishi Corporation (MC), Japan's biggest trading company, has announced it will pour 27.2 billion yen (166 million euro, US$222.87 million) to raise its stake in Nosan feed and two other units to help integrate its grain and animal feel operations.

 

MC intends to make Nosan a consolidated subsidiary as it possesses a 21 percent share in the animal feed firm.

 

MC also seeks to strengthen the value chain in the food industry by building a comprehensive network spanning, from sourcing of food materials at source to transportation and processing and distribution and retail sales of the final products.

 

Nosan Feed was established seventy years ago and its headquarters is located in the tallest building in Japan, Landmark Tower in Yokohama. Its main business has always been making feed for livestock.

 

Currently Nosan has three divisions: Feed, Food and Life-tech. Nosan makes about 2.33 million tonnes of feed annually in 4 feed plants and accounts for a ten percent share in both livestock and aqua feeds in Japan.

 

In the Food Division Nosan is famous for its "Hikari" iodine-eggs, which are sold at premium prices in the supermarkets.

 

In its Life-tech Division, horse feed and petfood are Nosan's frontrunners which put the firm as the number one manufacturer with a fifty percent market share.

 

Life-tech also consists of biotechnology products and services. Nosan has 13 overseas bio-tech venture companies.

 

MC and Nosan's business relationship started in the trade of animal feed ingredients and formulated feed. Subsequently, MC has helped Nosan build a competitive production system as well as establishing a longstanding, cordial beef venture in Japan.

 

A consolidation by these two firms could MC and Nosan make greater use of each other's capabilities. Nosan has animal feed technology, production facilities and production infrastructure, while MC has the ability to procure raw materials for animal feed, meat production and processing technology capabilities and expertise in selling meat.

 

Mitsubishi Corporation is one of the world's most diverse enterprises, and Japan's largest sogo shosha, or trading company.