Toyota Tsusho to Establish Flour Mill in Indonesia
Joint Venture Agreement concluded for Indonesian Flour Mill Alliance established with FKS of Indonesia, MFM of Malaysia and Toyota Tsusho.
Oct 7 2011 --- Toyota Tsusho Corporation together with Malayan Flour Mills Berhad, which is a major food processing corporate group in Malaysia, concluded a basic agreement on October 5, 2011, to inject capital into a flour mill company established by a major food processing corporate group in Indonesia, FKS Capital.
Consumption in Indonesia has significantly increased in recent years, due to the economic growth and increase in the population. Consumer needs are also diversifying, as the middle income bracket expands and urbanization progresses. A view of the flour mill market in this country reveals that the consumption of wheat flour is growing steadily, while the traditional food culture of rice still remains. This country is expected to become the largest wheat importing nation of Asia (one of the largest in the world) in the future. With such prospects of the future in view, Toyota Tsusho decided to inject capital into a flour mill company, which is a primary processing and manufacturing company, as a means to enter into the flour mill market of Indonesia.
With the establishment of the joint venture in 2011, preparation work will proceed for the commencement of construction of a Flourmill in 2012 leading to commercial operations in 2013. The joint venture partners will leverage on their individual expertise to take advantage of the business potential in Indonesia by establishing product brands, creating added value with competitive costs and managing the business with the aim of capturing a sizable market share of the flour business in Indonesia.
Toyota Tsusho has been concentrating the company’s efforts in the food industry, particularly in the grain business, as a field of concentration outside the automotive industry, intending to enhance and expand the company’s value chain for increased stable procurement and supply in order to continue responding to demands for grain in Asia into the future.
