Mitsubishi Corporation Further Strengthens Grain Procurement Sys
Mitsubishi Corporation Further Strengthens Grain Procurement System by Securing Grain Supply in Brazil
Brazilian grain company, Los Grobo Ceagro do Brasil S.A., becomes consolidated subsidiary of Mitsubishi Corporation
Tokyo, June 3, 2013 - (JCN Newswire) - Mitsubishi Corporation (MC) announces that Agrex do Brasil, a wholly-owned subsidiary of MC Group, will acquire an additional 60% of previously issued shares in Los Grobo Ceagro do Brasil S.A. (Ceagro). Through this acquisition, MC Group's shareholdings of Ceagro will increase from 20% to 80%, making Ceagro an MC consolidated subsidiary.
Brazil, designated as a Strategic Region in MC's New Strategic Direction has become a major soybean producing / exporting country, along with the United States. With expectations to also increase production and export of corn, Brazil has become an important grain supply source in conjunction with increasing global demand for grain.
Ceagro's business activities range from grain production and procurement to sales and export, handling approximately 1 million tons of grain commodities (mainly soybeans and corn) annually in the central and northern regions of Brazil, where continuous growth in grain production is expected. Through this acquisition MC aims to further strengthen its grain procurement system in Brazil and expand its business by improving efficiency in logistics.
MC’s New Strategic Direction sets out as part of its long-term growth vision circa 2020 to double the company’s earnings in non-resource businesses such as food and retail and to capture growth in Asia.
While seeking to expand its food and commodity supply sources globally, mainly in North and South America and Australia, MC aims to handle approximately 20 million tons of grain commodities per year. MC also seeks to expand its businesses in processed grain products, such as feed, meat and wheat flour, in importing regions, mainly Japan, China and South East Asia, and to effectively contribute to securing a stable supply of food products for consumers.
About Los Grobo Ceagro do Brasil S.A.
Founded by its CEO, Paulo Alberto Fachin in 1994 in Balsas, Maranhao, Brazil. A middle sized grain trading company doing business in Maranhao, Piauí,Tocantins, Bahia, Goias, Mato Grosso and Minas Gerais. Its business includes storage, logistics, commercialization, production of grain commodities and sale of agricultural materials (seeds, fertilizers and agricultural chemicals). It handles approximately 1 million tons of grain commodities per year.
About Agrex do Brasil Comercio e Exportacao de Graos Ltda.
A wholly-owned subsidiary of MC Group, founded in 2011. Operating primarily in central and southern Brazil, its main business activities include commercialization and export of grain commodities. It handles approximately 2 million tons of grain commodities per year.
About Mitsubishi Corporation
Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods. With over 200 bases of operations in approximately 80 countries worldwide and a network of over 500 group companies, MC employs a multinational workforce of nearly 60,000 people. For more information, please visit www.mitsubishicorp.com.
Mitsubishi Corporation Tel: +81-3-3210-2171 Fax: +81-3-5252-7705
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