Investment in Shrimp Farming Business in Ecuador - MITSUI & CO., LTD.
Summary
This is planned to be executed within the fiscal year ending March 2024, after the fulfillment of condition precedents, including obtaining the necessary approvals.Shrimp is an important product that will meet the rising demand for sustainable protein, as the worlds population and economy grows, and responds to health-conscious consumers with its low-calorie and high-protein content, with a short production cycle and high feed efficiency. In Ecuador, the worlds center of shrimp farming industry for export, Mitsui and IPSPs founders will jointly collaborate to pursue increased productivity and efficiencies, to optimize operational excellence and best serve customers needs. The partners will work to maintain a high focus on social responsibility, respect for the environment, high product quality, and will continue strengthening IPSP to lead modernization of the growing industry.Focusing on the potential of the shrimp industry, which is becoming increasingly industrialized and concentrated, Mitsui has invested in Minh Phu Seafood, the worlds largest shrimp processing company (based in Vietnam) in 2019 and has been strengthening the shrimp processing and sales business. Through this investment in IPSP, Mitsui aims to become a leading global player in the shrimp industry by extending the value chain to upstream such as breeding, feed and farming.Mitsui has identified Wellness Ecosystem Creation as one of its Key Strategic Initiatives in its Medium-term Management Plan 2026. Through this investment, Mitsui will work to add value to the business cluster in the food and nutrition area, and aim to support the realization of peoples richer and brighter lives by enhancing health and wellbeing through food.The impact of this acquisition on Mitsuis consolidated financial results for the fiscal year ending March 2024 is expected to be minor.