Mitsui and FP Corporation have agreed to acquire all the shares in Lee Soon Seng Plastic Industries (LSSPI) from SCGM and concluded a stock purchase agreement. LSSPI engages in the manufacture and sale of functional food containers mainly in Southeast Asia.
The acquisition of the shares will be completed in the second quarter of the fiscal year ending March 2023 after obtaining all necessary permits and licenses, including approval through special resolution at the Extraordinary General Meeting of Shareholders of SCGM and total acquisition amount will be about JPY16billion. Mitsui will hold a 60% stake, and FPCO a 40% stake.
Largest Manufacturers of Functional Food Containers
Established in 1984, LSSPI is one of the largest manufacturers of functional food containers in Malaysia, and has the capabilities to undertake the entire manufacturing process, including product design and mold making, and to deliver the finished products through their own logistics networks. Furthermore, LSSPI has many excellent customers, which include food manufacturers and packaging distributors, mainly in Malaysia, Singapore, Australia, the Philippines, and other countries in Southeast Asia.
Demand for functional food containers has been expanding in Southeast Asia due not only to population growth but also the modernization of retail business models, along with the development of supermarkets and convenience stores, as well as the expansion of the food delivery market. In addition, there has been a growing need for more sophisticated food containers, such as hygienic containers for selling products with individual packaging, microwave-safe containers desired with changes in dietary habits, and containers enabling extension of both the expiration date and long-term storage, developed for the purpose of preventing food loss.
Expanding Sales Utilizing Mitsui's Investees
Mitsui and FPCO will expand sales by utilizing the networks of Mitsui's investees and partners in Southeast Asia, and also introduce FPCO's know-how to improve production efficiency and various production development technologies in order to develop eco-friendly products that ensure safe and trusted dietary lifestyles and meet market needs.
In this way, the two companies will contribute to the further growth of LSSPI, as well as the creation of an enriched society by improving Asian dietary lifestyles and their convenience through the provision of functional food containers.
Mitsui has set "Market Asia" as one of its strategic focus areas in its Medium-term Management Plan and aims to build a consumer platform. Through this project, Mitsui will continue contributing to the realization of rich and varied dietary lifestyles, which has been sought by people in Asia and is also an essential part of "Enhance quality of life" of Mitsui & Co.'s Materiality.
Source: Mitsui