Japan's Mitsui and Russia's Sodrugestvo ink agreement to strengthen grain export business

Mitsui & Co., Ltd. ("Mitsui," head office: Chiyoda-ku, Tokyo) came to an agreement of 10% participation in Sodrugestvo Group S.A. ("Sodrugestvo"), the largest oilseed crusher in Russia and having ownership of grain export facilities, and signed relevant agreements. Mitsui also agreed to have strategic alliance with Sodrugestvo and cooperate in grain export business, the Japanese company said on Monday.

Sodrugestvo operates crushing plants in Kaliningrad Oblast, the westernmost part of Russia and situated on the Baltic coast. Sodrugestvo also has ownership of good grain business assets such as the facility in the ice-free port and the grain hopper wagons, which are very valuable in Russia. Making the best use of these assets, Sodrugestvo has established an integrated supply system of raw materials for feedstuff. In addition, Sodrugestvo is launching a grain export business in full swing this fall; to export grains produced in Russia and FSU to Europe, Africa and the Middle East.

Based on the Strategic Alliance Agreement, Mitsui plans to export and merchandize with the preferential right of the grains Sodrugestvo collects from Russia and FSU countries. In addition, Mitsui intends to cooperate in feedstuff and livestock business in Russia and FSU countries where such demand has been increasing. Mitsui makes contributions in upgrading and expanding the items Sodrugestvo handles, adding value and promoting sales. Furthermore, Mitsui will consider measures to make the best use of its expertise in various business areas towards Sodrugestvo's future growth.

With growing demand for grains over the world, Mitsui has strengthened its ability to supply grains from diversified major originations. The capital and business alliance this time adds Russia to Mitsui's grain business and helps strengthen its global grain collection system together with North America, South America and Australia, etc. where Mitsui has already developed such business. Russia is one of the leading grain exporting countries in the world and a further increase of grain production is expected. Mitsui will help bring a stable grain supply to meet world demand in the eyes of global grain business flow.