Shinmei Co., Ltd.(Shinmei) and Mitsubishi Corporation (MC) have announced a business and capital alliance.

 

Consumer interest in food safety and quality has increased considerably in recent years. In Asia rice is a staple food, and consumers demand not only a good-tasting product, but a safe and affordable one as well. In Japan, however, the rice market is shrinking due to the declining population, brought on by an aging society and falling birthrate. Furthermore, recent developments in agricultural politics hint of inevitable changes in the rice industry. New demand and new value will need to be created to ensure its survival. It is with these factors in mind that Shinmei and MC decided to form this alliance.

 

Shinmei is one of the biggest millers, whole sellers and retailers of rice in Japan. The company operates rice mills and a processing and distribution network in Kanto, Kansai and Kyushu. It also boasts an advanced quality control system. Meanwhile MC has various sales channels in retail, the fast-food industry, and the food-service industry. Both companies intend to apply their management resources and know-how to the fullest, in order to establish new, efficient, and stable systems. By combining their unique expertise, Shinmei and MC aim to provide their respective customers with safe and high-quality products and services..

 

This alliance should help spur new demand, not only for rice consumed at the table, but for rice used in processing and in animal feed as well. It should be effective in promoting exports overseas.

 

Both companies will discuss and determine the specific details of this alliance in the following fields:

(1)   Production and sales of milled rice

(2)   Food business

(3)   Other fields to be agreed upon by both companies

 

In order to solidify the business side of this alliance, through a bilateral contract MC will obtain additional Shinmei shares from the latter’s existing shareholders. Combined with MC’s existing shares, this addition will give the trading company 20% voting rights in Shinmei. This share acquisition is scheduled to take place in April, 2010.

 

 

 

 

 

 

Head Office	6-1-21, Sakaemachidori, Chuo-ku, Kobe-City, Hyogo, Japan
Established	October 1950
Capital	590,000,000 JPY
Main Businesses	Milling and sales of rice and wholesale groceries
Net Sales	1,365,000,000 JPY (Year ended March 31, 2009)
Number of Employees	369 (As of March 31, 2009)
Representative	Mitsuo Fujio, President

 

 

Head Office	3-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo, Japan
Established	April 1950
Capital	202,600,000,000 JPY
Main Businesses	Diverse businesses in a broad range of fields, including domestic trading, imports, exports and foreign trade of energy, metals, machinery, chemicals, foods and living essentials, provision of information, finance, logistics and other services, and domestic and international business investments.
Operating Transactions	23,103,000,000,000 JPY
Number of Employees	60,664 (As of March 31, 2008, consolidated)
Representative	Yorihiko Kojima, Representative Director, President & CEO