Expansion of the Sales Network for Marine Products
Nippon Suisan Kaisha, Ltd. (Representative Board Member, President & CEO - Naoya Kakizoe) hereby announces that, in an effort to further strengthen the group's Global Links, it intends to implement the two measures outlined below for expanding the sales network for marine products both in Japan and in Europe.
1. Integration of the sales function of New Zealand's Sealord Group, Ltd. (*1), an affiliate in equity method, for products intended for the Japanese market
Sealord had previously conducted sales of its products intended for the Japanese and South Korean markets (annual sales of approximately 3.4 billion yen) via Sealord Asia. However, starting on July 1, 2010, Nissui has taken over Sealord’s sales function for all products to be sold in the Japanese market.
This move is in line with Nissui's global policy of integrating multiple sales functions in a single market, which aims to reduce redundant costs and achieve efficient sales by eliminating overlapping functions within the group.
Formerly, Nissui's sales of frozen Southern white fish (mainly HOKI) had consisted primarily of fish caught in South America. However, with the transfer of Sealord's sales functions, Nissui will have additional access to fish caught in New Zealand. Nissui would ensure the competitive edge of its supply system to the markets of Japan, South Korea and Southeast Asia. Furthermore, Sealord, which had until now been engaged in sales of raw materials for processing would also be able to take advantage of Nissui's various functions including processing and enhance its added value, by becoming capable of various types of sales requested by individual customers.
2. Acquirement of 100% ownership of Nordic Seafood A/S
Nordic Seafood A/S (*2), an affiliate of Nissui in equity method, which was established in May 2006 through a 35% equity investment by Nissui and the rest of investments by Sealord and other local companies has been engaged in the sales of processed seafood including frozen seafood, surimi, and breaded-seafood for commercial, household, and industrial use, throughout Europe, excluding Spain and Portugal. As of August 31, 2010, Nissui has acquired the shares of Nordic Seafood held by Sealord and other companies and has consequently made Nordic Seafood its wholly-owned subsidiary.
Nordic Seafood will be under a new type of management, in which the day-to-day business will be left to the current management team, while members of the management of other companies in Nissui's Global Links will take part in its governance. Through this move, the Nissui Group intends to enhance its presence in the European market and further strengthen its Global Links.
Sealord Group, Ltd. is New Zealand's largest fishery company. In 2001, it became a member of the Nissui Group, with the acquisition of 50% of its shares by Nissui. Its major markets are Japan, Europe, and the U.S.
(*2) Nordic Seafood
|・Company Name: Nordic Seafood A/S
|・Head Office: Hirtshals, Denmark
|・Representative: Alex Jensen (President)
|・Sales :Approximately 25.0 billion yen (Fiscal year ended April 2010)
|・Regional composition of sales: Denmark (37%), Germany (20%), Sweden (10%), Russia (8%), Austria (8%), and others
|・Sales destinations: Food services (66%), industrial (23%), and retail (11%)