Nisshin Flour to raise Thai plant capacity 20%

TOKYO -- Nisshin Flour Milling Inc., a unit of Nisshin Seifun Group Inc. (2002), plans to spend about 300 million yen to increase production capacity at a mill in Thailand by 20% to 280 tons a day.

The output hike, slated for late this year, is aimed at boosting the firm's customer base, which includes makers of bread, noodles and confectionery.

The mill is located in Bangkok but was spared serious damage from last year's flooding. It is operated by Nisshin-STC Flour Milling Co., a joint venture of Nisshin Flour, Mitsubishi Corp. (8058) and a local food wholesaler.

Nisshin-STC's annual sales come to around 3 billion yen, making the firm a midsize player in the Thai milling industry. The company boasts technologies that process wheat into flour with the same quality regardless of yield variations in wheat each year.

Nisshin-STC also plans to expand exports. It will supply primarily Japanese food companies operating plants in such countries as Malaysia and China.

With Thailand's milling market growing an annual 3-4% in recent years, Nisshin Flour's rivals are also boosting production.

Overseas sales account for less than 10% of Nisshin Flour's revenue. The firm aims to raise the proportion to 30%.

 (c) 2012 Nihon Keizai Shimbun America, Inc.