07/09/2007 (Jiji Press), Tokyo - Major Japanese cooking oil makers Fuji Oil Co. and J-Oil Mills Inc. said Friday they have agreed to form a capital and business alliance.
In terms of sales, the pair will overwhelm industry leader Nisshin Oillio Group Ltd.
The partnership is intended to cope with soaring prices of raw materials, including soybeans, palm and rapeseeds.
J-Oil Mills will acquire a 1.14 pct equity stake in Fuji Oil, while Fuji Oil will keep its 1.19 pct stake in J-Oil Mills.
On the business side, the two firms said they will effectively utilize each other's production facilities. They are expected to split their mainstay palm oil operations, with Fuji Oil producing confectionery oil and J-Oil Mills making frying oil, informed sources said.
Fuji Oil and J-Oil Mills will also join hands in raw materials procurement and product distribution.
On a consolidated basis in fiscal 2006 ended last March, Fuji Oil achieved sales of 184.9 billion yen and an operating profit of 7 billion yen, while J-Oil Mills reported sales of 163.3 billion yen and an operating profit of 6 billion yen.
By Jiji Press, (c) Jiji Press