Major Japanese seafood maker Nippon Suisan Kaisha Ltd said Tuesday (May 25) it will start tilapia and shrimp farming in Brazil by taking effective control of a major local company.

Nippon Suisan expects high demand for tilapia, which is popular for fried dishes in Europe and the US.

It will be the first major Japanese company to make a full-fledged entry into the tilapia culture business.

At the same time, the company will launch the marine products processing business in Brazil.

For the initiatives, Nippon Suisan, through Chilean unit Desarrollo Oceanico SA, will acquire a 50.1% stake in Netuno International SA, based in Recife in the state of Pernambuco, for US$15 million on Monday.

Netuno International will assume all operations of its other shareholder, major Brazilian seafood company Netuno Alimentos SA.

The new company will sell its products in Brazil and North America, with annual sales expected at US$111 million.