TOKYO, Sept 15, 2017 - (JCN Newswire) - The National Federation of Agricultural Cooperative Associations ("ZEN-NOH") and Mitsubishi Corporation (MC) are pleased to announce the establishment of a new joint venture for the registration, manufacturing, and distribution of agrochemicals. The new company, "Z-MC Crop Protection Corporation" (tentative name) will be established in October of this year with ZEN-NOH and MC each holding a 50% share, and will begin operations in the 2018 fiscal year.
ZEN-NOH recognizes that lowering agrochemical costs requires seeking out demand and expanding its sales of agrochemical active ingredients(1) in domestic non-crop markets(2) as well as overseas, and accelerating the addition of generic (non-patent) agrochemicals to its range of product offerings. To this end, ZEN-NOH has been working to revamp its structure and corporate profile to better serve its agrochemical manufacturing, trading, and registration(3) operations.
For its part, as it seeks to expand its own business domains, MC has been taking steps to help meet the growing demand for food and agricultural inputs spurred by global population growth through its agrochemical contract manufacturing operations in India and China as well as through its domestic and international distribution businesses.
This joint venture is particularly unique as it combines the R&D and registration expertise of ZEN-NOH with MC's manufacturing experience and global network, and builds a platform on which both companies can maximize their synergies.
The new company will facilitate the registration and manufacturing of ZEN-NOH's active ingredients and other agrochemicals, expand sales of active ingredients and formulations abroad and in non-crop markets in Japan, and source generic agrochemicals that can contribute to better price competitiveness. The company is aiming to expand sales to 10 billion yen by 2021.
By achieving economy of scale through the operations of the new company, ZEN-NOH and MC will jointly contribute to enhancing the competitiveness of Japanese agriculture.
(1) Active Ingredient: The core component of an agrochemical that allows it to perform pest-controlling functions. This component is combined with other inert ingredients to create the agrochemical formulation used in the market.
(2) Non-crop market: Usages not related to crop production, such as ornamentals, turf, and roadside weed control.
(3) Registration: Authorization necessary for the production, sales, and usage of agrochemicals, requiring high expertise in obtaining various data demonstrating the safety and effectivity of the product.
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.
Telephone: +81 3 3210 2171
Facsimile: +81 3 5252 7705
Sept 15, 2017 11:25 HKT/SGT
Source: Mitsubishi Corporation
Mitsubishi Corporation (TSE: 8058)
Topic: Press release summary
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