TOKYO, Aug 3, 2015 - (ACN Newswire) - Daio Paper Corporation (Daio Paper) and Mitsubishi Corporation (MC) are pleased to announce today that they have reached a shareholders' agreement to establish two joint ventures for the wholly owned subsidiaries of Daio Paper Group in the Republic of Indonesia, "Elleair International Trading Indonesia" (EITI) and "Elleair International Manufacturing Indonesia" (EIMI).
The outstanding shares of EITI and EIMI held by Daio Paper will be transferred to MC and a third-party allocation of new shares of both companies will be transferred to MC in November of this year. Upon completion, MC will hold 40% stock of EITI and EIMI while Daio Paper will hold 60% shares of each company.
In Indonesia, demand for disposable diapers is expected to grow in line with the improvement of living standards and rising birth rate. Daio Paper established sales company EITI in March, 2013 and EITI started the import and sales from Thailand's production base to promote the brand "GOO.N" and to expand sales volume.
Daio Paper established production company EIMI in November 2014 to provide a stable supply and to reduce costs through local production. A factory is currently under construction and expected to start operations within this year.
Daio Paper has disposable diaper manufacturing technology and development capabilities to compete abroad. Experience in sales and marketing activities in Thailand and China and import and sales activities in Indonesia during the past two years will provide added strengths.
MC is involved in various food manufacturing, distribution and logistics businesses in Indonesia under an alliance with the Alfa Group, who are a leading retail chain with over 10,000 outlets in the country. Daio Paper and MC will make a full scale entry into the Indonesian market offering disposable baby diapers of Japanese quality through various trade channels including the Alfa Group as well as through traditional trade channels. Through these joint ventures, the companies will improve consumer choice in Indonesia and contribute to the local community through job creation.
In the future, we are eyeing exports from Indonesia and expansion of other product categories such as adults diapers, sanitary napkins, wet wipes, sanitary paper, etc.
About Mitsubishi Corporation
Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business enterprise that develops and operates businesses across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC's current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods. With over 200 bases of operations in approximately 80 countries worldwide and a network of over 500 group companies, MC employs a multinational workforce of nearly 60,000 people. For more information, please visit www.mitsubishicorp.com.
Source: Mitsubishi Corporation
Contact:
Mitsubishi Corporation Telephone: +81-3-3210-2171 Facsimile: +81-3-5252-7705
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