Sojitz to Break into Vietnam's First Food Industrial Complex Development Project
-Investing in a leading Vietnamese flour milling company to undertake construction and expansion of port infrastructure-

Sojitz Corporation will make a 20% investment in Vietnam's leading flour milling company Interflour Vietnam Limited (hereafter abbreviated as IFV; Head office: Ho Chi Minh), to undertake development of a food industrial complex, which will be the first in Vietnam, and to implement port infrastructure construction.

With this project, the company will, in July 2007, begin with the construction and expansion of port infrastructure, land readjustments, grain silo/warehouse construction, centering on IFV's flour milling plant; with the aim of completing construction in fall 2008.

Further, at or about the time when the said port infrastructure construction work is completed, a feasibility study will be performed concerning the production of such things as compound feed, vegetable oil, starch, sugar and bio-energy. This will be followed by a plan to construct a food industrial complex at the hinterland of the deep port facility. Sojitz will inject a total of approximately 10 billion yen (about US$80 million) into the project; including the cost of acquiring the above mentioned IFV shares.

IFV is a business corporation wholly owned by Interflour Holdings Limited, which is a joint venture between Indonesia's largest conglomerate the Salim Group and Co-operative Bulk Handling Limited, the largest cooperative in Australia. IFV is the second largest miller in Vietnam, with an annual wheat milling capacity of approximately 180,000 tons. The company's milling plant is located on the Thi Vai River, which is the only location in southern Vietnam where a deep port facility can be constructed to allow Panamax vessels (60,000 to 80,000 tons) to dock. In addition, the jetty for vessels adjacent to the IFV plant is the only one in the region that is used exclusively for grains.

The grain handling capacity of the port, which is to be improved and expanded by the project participants, is approximately 8,000 tons per day. Port improvement and construction of a grain silo and a warehouse will enable this capacity to increase to 18,000 tons per day. The port will be the best in the ASEAN region, with cargo handling facilities dedicated to the handling of grains.

Sojitz will contribute to the development of the food industry in Vietnam, through the development of the food industrial complex, and through the construction of an efficient port infrastructure to reduce the expenses and to enhance the level of safety associated with the import of grains, the prices of which continue to surge. 

Location of the IFV flour milling plant

IFV's milling plant, silo, grain elevator and cargo conveyor

Thi Vai River and a vessel undergoing cargo handling operations

Planned construction site for the food industrial complex (hinterland of the port)