Japan’s Mitsui Sugar to start joint packaging venture in China
TOKYO, NNA - Japan’s Mitsui Sugar Co. said Wednesday that it would begin to produce and package sugars in China through a joint venture with its local partner aiming to foster consumer demand.
Mitsui Sugar and Yingkou New Northern Sweet established Hany Sugar with a capital of 100 million yuan ($14 million) in Yingkou of the northeastern province of Liaoning on Monday.
Construction of the facility for the joint venture, 35 percent owned by Mitsui Sugar and 65 percent by New Northern Sweet, will begin around April 2020 and will be operational in around October in the same year.
The facility will have an annual capacity of producing 3,000 tons of brown sugar and packaging 45,000 tons of brown and white sugars refined by the local partner.
Mitsui Sugar expects to combine the packaging equipment within the production facility to cut costs of packaged sugar and to boost Chinese consumer demand.
In China, sugars are refined and packaged separately by different companies, Koji Suzuki, general manager of Mitsui Sugar’s corporate planning division. “We will take advantage of cost competitiveness” to appeal to local consumers who still tend to buy sugar in large bags.
In January 2019, Mitsui Sugar took a 20 percent stake in Chinese sugar refiner COFCO Sugar Liaoning Co., which has an annual capacity of refining 1 million tons of sugar.