News Release

2005.3.14An announcement regarding the "acquisition of an industrial site in Chiba."

Fuji Oil has acquired the land of approx. 60,000 m2 for a foods complex at Shinminato, Mihama-ku in Chiba City. The industrial land, which faces Tokyo Bay and is available for ocean vessels docking, will be utilized for constructing oil and fats refining/processing plants and tank facilities. Although, the solid plan is still under discussion, we are planning to take this project with a total investment of 8 - 9billion yen, and with a time span of two to three years, comprehensively considering the cash flow.

One of the purposes of constructing a new Chiba Plant is risk management (risk diversification) in response to the recently increased concerns over a possible Tonankai/Nankai earthquake. Furthermore, it is to establish a structure to fulfill our responsibilities as a reliable and stable supplier, by having two production hubs, one in Kansai region and another in Kanto region.This project is a response to our old customers' robust requests.

Fuji Oil already has business operations based in Kanto area. Beginning with the Tsukba R & D Center, there is also The Kanto Cream Plant, The Kanto Chocolate Plant, and the Soy Protein Foods Tsukuba Plant. However, this new land acquisition enables us to actualize the two-hub structure of our processed oil and fats business, which was behind our other business developments.

In the mass-consuming Kanto region, we are constructing a plant close to our customers, which will not only enable us to supply fresher products, but we will also be able to supply our products in line with changes requested by our customers swiftly, flexibly, and instantaneously. It will enable us to shorten the lead-time, while improving logistic efficiency as the new plant will reduce the need for the physical distribution from Kansai to Kanto, such as trucking, meaning that we can also reduce CO2 emissions. We have realized that the current Hannan Business Operations Complex lacks in production capacity even when it is in full production, therefore, this new Chiba plant will enable us to respond to a wider-ranging deployment. We are planning to absorb increased costs through the reduction in physical distribution costs and increased production.

End of report


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