News Release
Business
FUJI OIL
Notification of capital increase in the Chinese headquarters and establishment of a new company (subsidiary of a subsidiary)
2017.3.16
1. Objective of establishment of the new company (subsidiary of a subsidiary)
The Fuji Oil Group is developing business in oils & fats, confectionery & bakery ingredients, and soy beans on a global scale. In China, it already has eight subsidiaries that are engaged in business in the Chinese market, which is very important to the Group. It has decided to establish a new company (subsidiary of a subsidiary) through FUJI OIL (SHANGHAI) INVESTMENT CO., LTD., its wholly-owned subsidiary functioning as its headquarters in the China area, in order to further expand its production capacity and sales, mainly in business in confectionery & bakery ingredients in the Chinese market.
2. Outline of the Chinese headquarters (the company receiving the capital increase and making outlays for the new company (subsidiary of a subsidiary))
| (1) Company name | FUJI OIL (SHANGHAI) INVESTMENT CO., LTD. |
|---|---|
| (2) Representative | Masataka Minemura, Chairman & President (a Fuji Group employee) |
| (3) Location | Changning District, Shanghai, China |
| (4) Date of establishment | January 22, 2015 |
| (5) Main business | General management of operations in China, including business administration, fund management, business investment, and formulation of business strategy |
| (6) Fiscal year end | December 31 |
| (7) Capitalization | 30,000,000 USD (highest capital increase of 26,000,000 USD this time) |
| (8) Investors | Fuji Oil Holdings Inc. 100% |
3. Outline of the new company (subsidiary of a subsidiary)
| (1) Company name | FUJI OIL (ZHAOQING) CO., LTD. |
|---|---|
| (2) Representative | Masataka Minemura, Chairman & President (a Fuji Group employee) |
| (3) Location | Zhaoqing, Guangdong Province, China |
| (4) Time of establishment | March 2017 (tentative) |
| (5) Main business | Manufacture and sale of confectionery & bakery ingredients |
| (6) Fiscal year end | December 31 |
| (7) Capitalization | 200,000,000 RMB (3.3 billion JPY, based on figures officially announced on March 15, 2017) |
| (8) Investors | (*)Fuji Oil Holdings Inc. will make an outlay through FUJI OIL (SHANGHAI) INVESTMENT CO., LTD., its headquarters (and wholly-owned subsidiary) in China. |
| (9) Start of production | July 2018 (tentative) |
| (10) Sales target | 859,000,000 RMB (14.3 billion JPY) (FY2027 target) |
4. Impact on business performance
The impact of this matter on Fuji Oil Holdings’ consolidated financial results for the financial year ending March 31, 2017 is expected to be minimal.
