Japan’s Showa Sangyo, Taiwan DaChan widen cooperation to expand in Asia
TAIPEI, NNA – Japanese grain products and food maker Showa Sangyo Co. will buy shares in two subsidiaries of Taiwan food maker DaChan Great Wall Group and help local partners improve production efficiency and quality in their expansion plan in foreign markets.
Showa Sangyo will inject a total of 2.6 billion yen ($23.8 million) in Kouchan Mill Co., a flour maker, and Z. Y. Food Co., an egg producer, through private share placements scheduled between March and May next year, its spokeswoman told NNA last Friday.
The Tokyo-based firm plans to acquire a 40 percent stake in Kouchan, established in 2006, and a 35 percent share in Z. Y. Food, founded in February 2018, it said in a statement.
The two partners, which formed a flour milling joint venture in the northern Chinese city of Tianjing in 2003, have collaborated in producing and selling eggs, flours and feeds in Japan and Taiwan since 2017, said the Showa Sangyo statement.
Following the latest share purchase slated to be signed on Dec. 17, they aim to step up cooperation in enhancing productivity and quality management, a Showa Sangyo spokeswoman in Tokyo told NNA.