AAK, Miyoshi Oils & Fats Co. to open a new company

AAK Miyoshi JP is the new company formed by AAK (STO:AAK) and Miyoshi Oils & Fats Co. to extend the prerequisites for AAK’s business in the Japanese market. The venture, which operates by January 2016, will have sales and customer innovation resources and will focus on products for the chocolate and confectionery, bakery, dairy and infant nutrition markets.

AAK Miyoshi JP is 70% owned by AAK and 30% by Miyoshi Oils & Fats Co. The new company has entered a toll manufacturing agreement with Miyoshi Oils & Fats Co. who will manufacture the products locally.

“With global customers and regional leaders Japan is obviously a very attractive market to be present in for AAK”, says Torben Friis Lange, president of AAK Asia. “Miyoshi is a very good match in size, location, technology and culture and has very well-developed relations with many important local customers. Together, we will continue to develop customer relations as well as the portfolio of speciality and semi-speciality products.”

Established in 1921, Miyoshi Oils & Fats Co. has factories in Tokyo and Osaka harbor areas focused on the bakery market. Its annual revenue was approximately SEK 3 billion in 2014.

“I have visited AAK many times over the last 40 years and it is with great pleasure we welcome this partnership”, said Katsuyoshi Miki, executive managing director at Miyoshi Oils & Fats Co. “I’m confident that it will be successful and that it will create great synergy effects for both partners.”

Besides this endeavor, AAK is constructing a speciality and semi-speciality edible oils factory in Zhangjiagang, China, which operates by the second quarter of 2016. The company has recently acquired 51% of a leading Indian oils and fats company, creating AAK Kamani, based in Mumbai.