Japanese Mitsu Buys 37% Stake in Chinese Shrimper
Mitsui & Co. spent about Y2.5 billion yen to acquire a 37% stake in Allied Pacific.
Allied Pacific is a Chinese firm that farms and processes shrimp.
Consumers in Japan, the U.S. and Europe have become increasingly sensitive to food safety.
Mistui saw a business opportunity by securing a stable supply of shrimp for which traceability would not be a problem.
Allied Pacific owns shrimp-farming and feed-production facilities:
1. on Hainan Island.
2. in the city of Zhanjiang in Guangdong province
3. in Dalian.
Allied Pacific's headquarters are in Dalian and it exports some 13,000 tons of shrimp a year.
The Chinese firm plans to use the Mistsui investment to upgrade its farming facilities.
Trading house Mitsui has a plan to spend a total of roughly Y80 billion fiscal 2010 to secure food resources.
Will you feel it safer to eat shrimp from China if Japan is involved?
