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Mitsubishi Corporation Equity Participation in Australian Dairy Manufacturer, Tasmanian Dairy Products


June 20, 2012 - Tokyo

Mitsubishi Corporation (MC) is pleased to announce that it has decided to acquire a 24% share in Tasmanian Dairy Products Co.,Ltd (TDP), a company established by Australia's largest dairy export manufacturer Murray Goulburn Co-operative Co Ltd (MG) and other local Tasmanian Investors. TDP manufacture Dairy Food Ingredients (WMP, SMP, and Anhydrous Milk Fat) in the Australian state of Tasmania.

TDP will be investing approx AUD75 million in new manufacturing facilities in Tasmania with a process capacity of around 250,000 tonnes of raw milk and aims to commence production in September 2012. The aim of the venture is to establish a stable supply of dairy products to Asian markets including Japan.

Tasmania is widely regarded as a very reliable dairy region with strong growth prospects. It has land, rainfall, irrigation and people resources that can underpin future milk supply for the venture. Smithton in northwest Tasmania, where TDP's manufacturing plant will be built, is located in the centre of the main milking area, where the major dairy farms that will supply the plant with raw milk, which all lie within a 50km radius of the plant. This close proximity and short transport distances will be one source of the company's cost competitiveness.

The global dairy market is expected to grow at a rate of more than 2% a year, particularly in the newly emerging economies, but with dairy product supply growing at only 1%, the balance between supply and demand is forecast to become even tighter in the future. Because of the increase in demand in Asia on the back of strong economic growth, the establishment of stable supply systems for quality dairy products to accommodate the increase in consumption of imported dairy products in Asia has become a challenge of great urgency. Meanwhile, a 1/3 of total demand for dairy products must continue to be supplied to the Japanese market to meet demand in Japan as well.

MC has built up a long-standing relationship of mutual trust with TDP's major shareholder, MG, through many years of trading in dairy products and manufacturing joint ventures. With a view to the further expansion of the dairy manufacturing business through the TDP venture, MC plans to build a strong dairy product supply chain from the perspective of securing food resources.

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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