June 21, 2012

Mitsubishi to acquire 24% of shares in Australian firm

Japanese trading firm, Mitsubishi, will be buying 24% of shares in Australian dairy food ingredient manufacturer, Tasmanian Dairy Products.

Tasmanian Dairy Products was established by Australia's leading dairy export manufacturer, Murray Goulburn Co-operative and other local Tasmanian Investors.

According to the company, this deal is a part of Mitsubishi's strategy to establish a stable supply of dairy products to Asian markets including Japan.

Tasmanian Dairy will be investing AUD75 million (US$76.12 million) to set up a new manufacturing plant in Tasmania, which will have a processing capacity of around 250,000 tonnes of raw milk. The plant is expected to be operational in September 2012.

Mitsubishi noted that through the venture with Tasmanian Dairy Products, it plans to build a strong dairy product supply chain and further expand its dairy manufacturing business.

Mitsubishi was involved in a long-term partnership with Murray Goulburn - Tasmanian Dairy's major shareholder, through trading in dairy products and manufacturing joint ventures.