JAPAN'S MARUHA TO ACQUIRE MALAYSIA SHRIMP FARM FOR US$28 MLN

TOKYO, Jan 28, 2008 (AsiaPulse via COMTEX) -- MRUHF | news | PowerRating | PR Charts -- Seafood supplier Maruha Corp. will spend more than 3 billion yen (US$28 million) to buy all shares in shrimp farm operator Agrobest (Malaysia) Sdn Bhd as early as this month, The Nikkei learned Friday.

Through the acquisition, the Maruha Nichiro Holdings Inc. (TSE:1334) unit aims to boost its cultivation and supply of shrimp as global competition in seafood intensifies. It will buy the shares from Agrobest parent S.H. Corp.

Maruha already operates its own shrimp farms overseas, but this will be its first takeover of such a facility. Agrobest cultivates large black tiger shrimps. Nearly all 2,600 tons of the shrimp it farmed in 2006 were exported to Japan.

After the acquisition, Agrobest will begin farming vannamei shrimps as well. Maruha will shell out a few hundred million yen to add processing and other infrastructure. Roughly half the size of black tigers, vannamei shrimps are resilient to disease and changes in water temperature and quality.

Agrobest plans to farm 7,500 tons of shrimp in 2009, with more than half to be vannamei. Sales are seen rising to 4 billion yen. While the bulk will be exported to Japan, plans call for supplying around 500 to 1,000 tons to Europe, the U.S., and other parts of Asia in two to three years.

According to Maruha, Japan imported some 300,000 tons of shrimp in 2005. Maruha Nichiro Holdings is expected to import a total of 50,000 tons this fiscal year, making it the No. 1 shrimp importer by virtue of a nearly 20 per cent market share.

(Nikkei)

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