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
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.
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