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Jan. 20, 2016
Sumitomo Corporation

Sumitomo Corporation to Invest in the Feed Grain Import and Sales Business in China

Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President: Kuniharu Nakamura)  signed a contract to acquire 40% of the shares of Xiwang International Trade Co., Ltd. (Head Office: Shandong; Representative: Wang Di), which imports and sells feed grains (such as barley and sorghum), in China.

In line with the westernization of diets and increasing incomes, demand for meat, especially pork and chicken, has been expanding in China, leading to recent dramatic increases in the amount of feed grains imported to the country. To meet this rapidly growing demand, Sumitomo Corporation will draw upon its long accumulated know-how to import feed grains to China and utilize the sales network established for feed ingredients including corn byproducts manufactured by Xiwang Food, Xiwang Sugar and other affiliates of Xiwang Group (parent company of Xiwang International Trade).

Xiwang Group and Sumitomo Corporation concluded a strategic comprehensive agreement* on September 24, 2015, and the investment in Xiwang International Trade by Sumitomo Corporation is the first project to be implemented under this agreement. In the future, Sumitomo Corporation will work to implement business projects also in fields other than feed grains in cooperation with Xiwang Foodstuffs and Xiwang Sugar, such as developing the vegetable oil business in response to increased trends for health promotion in China. Xiwang Foodstuffs is the largest manufacturer and seller of corn oil in China. Sumitomo Corporation will conduct examinations to launch a new business by organically fusing the Xiwang Group’s strong brand power and nation-wide sales network with Sumitomo Corporation’s overseas procurement foundation and business management know-how.

In addition, Sumitomo Corporation plans to invest in a business to manufacture, import/export and sell animal drugs (mainly animal vaccines) and feed additives in Shandong, for which the company is building up relationships with pig and poultry farmers in China. By deploying the expertise and findings gained through this process, Sumitomo Corporation will exert its integrated corporate strength to foster cooperation and partnership among multiple organizations related to the Chinese feed and livestock industries, which will in turn provide the company with the momentum to promote the growth strategies upheld in its medium-term management plan, BBBO2017.

[Outline of Xiwang International Trade]
Establishment : 2003
Representative : Wang Di
Location : Xiwang Industrial Park, Zouping, Shandong, China
Capital : 182 million yuan (about 3.4 billion yen)
Description of business : Import and sale of feed grains, and export of corn derivatives (starch and feed ingredients)
[Outline of Xiwang Group]
Establishment : 1996
Representative : Wang Yong
Location : Xiwang Industrial Park, Zouping, Shandong, China
Annual turnover : 26.8 billion yuan (about 530 billion yen) in fiscal 2014
Description of business : Corn processing and sale of corn products (starch, sugar and corn oil)
Manufacture of special steel (by the use of the biggest electric furnace in Shandong and two blast furnaces), real estate business, trade and others
Major subsidiaries : Xiwang Foodstuffs, Xiwang Sugar and others
Number of employees : More than 14,000

* Strategic comprehensive agreement
Sumitomo Corporation concluded this comprehensive agreement with Xiwang Group on September 24, 2015. In line with this agreement, the two companies will make use of their respective strengths and foster cooperation based on strong relations of trust, thereby fostering business expansion mainly in the food domain, including the supply of various vegetable oil products, importing of grains, and provision of health foods.

[Picture of Signing Ceremony]
left of front row: Representative of Xiwang International Trade, Wang Di
right of front row: Corporate Officer, and General Manager of Food & Agriculture Business Division of Sumitomo Corporation, Tetsuro Tajima


Corporate Communications Department,
Sumitomo Corporation

TEL:+81-3-5166-3100News Release Contact Form

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