Aug. 13, 2012
Mitsui & Co., Ltd. ("Mitsui," head office: Tokyo, President and CEO: Masami Iijima) and Industrial Bosques Cautin S.A. ("IBC"), a Chilean plantation and woodchip processing & exporting company, reached agreement to set up a joint venture company and signed a shareholders agreement on August 10th, 2012. Mitsui's equity share will be 49%, via a newly established 100% subsidiary company Mitsui Bussan Woodchip South America SpA. Mitsui will participate in woodchip processing and exporting business in Chile, in addition to its operations in Australia. The operation is planned to start in September, 2012.
IBC was established in 2008 by spinning off Bosques Cautin S.A., a Chilean plantation company established in 1992, to promote woodchip processing and exporting business. Currently, IBC is selling woodchips and logs to the Japanese and Chilean markets.
Mitsui has developed plantation, woodchip processing and export business in Australia since the late 1980s and has been responsible for the stable supply of high quality woodchips for paper companies in Japan and China. Mitsui will participate in this industry in Chile based on the know-how and experience it has acquired in Australia.
The world's paper consumption continues to expand, driven by demand in the Asian region, especially in China, and the trade volume of woodchips for paper production is increasing. The demand for woodchips from sustainable forest resources as environmentally friendly biomass is also expected to increase steadily.
By strengthening ties with its strong partner IBC, Mitsui intends to contribute to supplying woodchips from Chile, the world's third largest exporter of woodchips, as a new supply base to meet expanding demand in Asia, especially the Japanese and Chinese markets.
(1) The Joint Venture
|Name of Company||Trans Pacific Fibre S.A.|
|Head Office||Temuco, The Republic of Chile|
|Establishment||September, 2012 (planned)|
|Representative||Andres Edwards, CEO|
|Shareholders||Mitsui 49%, IBC 51%|
|Business Activities||Woodchip processing and exporting of Eucalyptus Nitens|
|Company name||Industrial Bosques Cautin S.A.|
|Domicile||Temuco, The republic of Chile|
|Time of establishment||August, 2008|
|Representative||Pedro Jaramillo, CEO|
|Main business||Woodchip processing and exporting of Eucalyptus Globulus|
(3) Bosques Cautin S.A.
|Company name||Bosques Cautin S.A.|
|Time of establishment||May, 1992|
|Representative||Pedro Jaramillo, CEO|
|Main business||Plantation business of Eucalyptus Globulus|
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.
For inquiries on this matter, please contact
Mitsui & Co., Ltd.
Corporate Communications Division
The information contained in this news release is true and accurate at the time of publication; however, it may be subject to change without prior notice.