China (Strategic Region)
Tapping Into Economic Growth, Expanding Businesses
With its expansive land area and the world's largest population, China continues to experience strong economic growth. Eyeing increasing internal demand, MC is engaging in a meat project and other businesses in China.
Targeting the Creation of New Business in a High-growth Environment
Amid the growing presence of emerging markets in the global economy, China above all is expected to grow at a high rate. The Chinese government's 12th five-year plan, which began in 2011, designates internal demand expansion, energy saving, the environment, renewable energy, hybrid and electric vehicles and certain other fields as strategic businesses for expansion, as the country seeks to transform its model for economic development. At the same time, China continues to build infrastructure in its interior. Another noteworthy dynamic is that Chinese corporations are stepping up the pace and breadth of global activities.
Recognizing the potential of the Chinese market, all MC business groups plan to broaden their business development in China. They are expanding initiatives from various angles, including businesses targeting internal demand and the development of business with Chinese companies in other countries. In April 2011, MC stationed a senior executive vice president in China for the first time. Under his leadership, we plan to develop business in China in a more flexible manner.
As one project targeting growing internal demand in China, in June 2011, MC, Itoham Foods Inc., and Yonekyu Corporation decided to invest in the meat and livestock business in China of COFCO Limited. The four companies plan to invest a total of 10 billion Chinese yuan (approximately ¥125 billion) through 2017 for expanding meat products and processed foods businesses. We believe this will contribute to a stable food supply framework and develop the meat industry in China.
In this way, MC aims to achieve mutual and sustained development by working with leading partners in Japan and overseas to conduct globally oriented business investments.
Targeting East Asia's Unlimited Potential
I believe that China, with its 1.3 billion people, has unlimited potential both as a production center and a consumer market. As MC actively looks to expand business in China, I believe it's important to promote ties that are mutually beneficial by seeking to supplement China's growth and contribute to its development, such as through businesses that address environmental problems or energy conservation.
Meanwhile, other countries and regions in East Asia are also seeing robust economic development. I earnestly hope to contribute to development in East Asia, including Mongolia, by enhancing coordination across the MC Group, while continuing to delve further into China's business environment.
MC Senior Executive Vice President, Regional CEO, East Asia & Chief Representative for China