Tokyo, Japan
June 12, 2020
Xiangyan's facility where vegetable seed variety developments are carried out
Mitsui & Co., Ltd. (“Mitsui”, Head Office: Tokyo, President and CEO: Tatsuo Yasunaga) signed a Share Purchase Agreement on June 11, 2020, to acquire a 30.4% equity stake in Hunan Xiangyan Seed Industry Co., Ltd. (“Xiangyan”), the founding body of China’s largest seed company Yuan Longping High-Tech Agriculture Co., Ltd. (“Longping High-Tech”) and core subsidiary of Longping High-Tech’s vegetable seed business.
Xiangyan's pepper variety
China accounts for more than 50% of total vegetable production worldwide, making it one of the most important market in the industry. Mitsui has been working together with Longping High-Tech for four years to promote product development collaboration, and the companies have built a trusting relationship in the process. Through this investment in Xiangyan, the companies will further deepen their collaboration in breeding technology, and will work with Japan Vegetable Seed Co., Ltd.—a company established with Japanese seed companies that have been breeding vegetable varieties for many years—to carry out China-based development and sales of high quality, high value-added vegetable seeds including but not limited to cabbage, cucumber and pepper. At the same time, Mitsui plans to utilize the sales platform of Japan Vegetable Seed to launch development and sales of Xiangyan’s hot pepper seeds in the Asian market.
Mitsui is paying close attention to needs associated with issues such as the growing demand for food as the global population increases, realizing a stable food supply system that is adapted to climate change, and the growing demand for vegetables that improve people’s health and living standards. Because the vegetable seed business is thought to be part of the solution to these issues, Mitsui will position it as an area of strategic growth, and will utilize this new investment to contribute to improving the dietary habits of people in Japan, China and the rest of Asia.
BACKGROUND
Longping High-Tech
Official name: Yuan Longping High-Tech Agriculture Co., Ltd.
Date of establishment: 1999
Head office: Changsha City, Hunan Province, China
Business overview: China's largest seed company, with the world's largest share in rice seeds.
Website: http://en.lpht.com.cn/
Xiangyan
Official name: Hunan Xiangyan Seed Industry Co., Ltd.
Date of establishment: 1988
Head office: Changsha City, Hunan Province, China
Business outline: The founding body of Longping High-Tech. Maintains a sales network throughout the country, and owns the largest share in pepper seeds in China, which is a vegetable crop that represents the largest planted area and is an essential component of the country's food culture.
Website: http://www.xyseed.com/
Japan Vegetable Seed
Official name: Japan Vegetable Seed Co., Ltd.
Date of establishment: 2017
Head office: Chiyoda-ku, Tokyo
Business overview: Development and sales of vegetable seeds
Mitsui & Co. Ltd is a Japanese multinational with global operations. It has 16 business units, including one devoted to agribusiness, which amongst other things develops new hybrids and seeds through Japan Vegetable Seeds.
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