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Japan's Marubeni, 4 others to build feed complex

Trading firm Marubeni Corp (8002.T) and four others have agreed to build an agribusiness complex in Hokkaido, Japan's northern main island, to streamline feed storage and production for large-sized cattle farmers.

The companies said in a joint statement on Wednesday that the complex, to be built with the funds contributed by the five firms for an estimated 14 billion yen ($122 million), is in Tokachi port in the southern coast of Hokkaido, where Panamax carriers can unload imported grain.

"Hokkaido is a large domestic market and is yet growing," said Takashi Hashimoto, a Marubeni spokesman.

Japan's cattle feed market has been mostly matured with annual demand of 24 million tonnes. Of that, Hokkaido accounts to some 13 percent, he said.

A feed plant to be operated by a joint venture between Nippon Beet Sugar Manufacturing Co Ltd (2108.T) and unlisted Marubeni Nisshin Feed Co Ltd will start running fully in April 2011, with output of 420,000 tonnes a year. The complex also has a storage capacity of 40,000 tonnes.

Nippon Beet Sugar will have a 30 percent stake in the feed plant with 450 million yen in capital, and the remaining 70 percent is held by Marubeni Nisshin Feed, a joint venture between Marubeni and flour miller Nisshin Seifun Group (2002.T).

The storage unit is run by a joint venture with 460 million yen in capital, of which Marubeni and port transport services company Kamigumi Co Ltd (9364.T) each have a 35 percent stake, and unlisted Pacific Grain Terminal, Marubeni's grain transporting unit, holds the remaining 30 percent.

($1=114.68 Yen)

Tags · Japan's Marubeni · 4 others to build feed complex

26.09.2007. 03:46

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