July 3, 2012

Mitsui to acquire 10% stake in Russia's top oilseed crusher

Mitsui & Co. will take a 10% stake in Russia's largest oilseed crusher, Sodrugestvo Group SA, announced Monday (July 2).

The interest is estimated to be worth almost JPY10 billion (US$125 million).

Sodrugestvo runs plants for crushing imported soy in the western Russian state of Kaliningrad. The firm exports soyoil to Europe and sells soy meal, which is used as livestock feed, to former Soviet countries. It owns such assets as facilities at ice-free ports that connect to the Baltic Sea and large rail cars for transporting soy meal.

Under plans for an operating alliance, rail cars empty after transporting soy meal will be used to take back grains from the former Soviet nations to Sodrugestvo's port facilities for shipment to Europe and other markets. Mitsui is considering acquiring priority purchasing rights for the grains, which it would export and sell in Europe, Africa, the Middle East and elsewhere.

The Japanese trading house could also supply soy to its partner via a wholly owned Brazilian unit that produces and ships grains. The pair also plan to join forces on livestock feed in former Soviet countries.