Toyota partnering in flour mill alliance in Indonesia

by Eric Schroeder
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TOKYO — Toyota Tsusho Corp., along with Malayan Flour Mills Berhad, which is a major food processing corporate group in Malaysia, and FKS Capital, a food processing corporate group in Indonesia, have agreed to invest approximately $66 million to establish a flour mill company in Jakarta, Indonesia.

“Consumption in Indonesia has significantly increased in recent years, due to the economic growth and increase in the population,” Toyota said. “Consumer needs are also diversifying, as the middle income bracket expands and urbanization progresses. A view of the flour mill market in this country reveals that the consumption of wheat flour is growing steadily, while the traditional food culture of rice still remains. This country is expected to become the largest wheat importing nation of Asia (one of the largest in the world) in the future. With such prospects of the future in view, Toyota Tsusho decided to inject capital into a flour mill company, which is a primary processing and manufacturing company, as a means to enter into the flour mill market of Indonesia.”

Toyota said construction of the flour mill is expected to begin next year, with operations beginning in 2013. The mill is expected to have flour production capacity of 1,500 tons per day.

“Toyota Tsusho has been concentrating the company’s efforts in the food industry, particularly in the grain business, as a field of concentration outside the automotive industry, intending to enhance and expand the company’s value chain for increased stable procurement and supply in order to continue responding to demands for grain in Asia into the future,” the company said.

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