Food joint venture to be an instant major exporter
Kiyokazu Fukui, left, president of Kyokuyo Co Ltd, and Thongchai Tavanapong, right, CEO of UFP, at the opening of their joint venture, K&U Enterprise Co Ltd.
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A new Thai-Japanese joint venture, K&U Enterprise Co Ltd (KUE), plans to export 70 per cent of its production of frozen-food products to the Japanese market, says president Tetsuo Matsumoto.
The joint venture is owned equally by leading Thai frozen-food exporter Union Frozen Products Co Ltd (UFP) and Japanese food company Kyokuyo Co Ltd. KUE has registered capital of Bt120 million and a Bt400-million factory in Samut Sakhon with a production capacity of 4,000 tonnes per year. Matsumoto said 70 per cent of the company's products - described as value-added and easy to eat - would be exported to Japan and sold through restaurant chains, take-away sushi kiosks and convenience stores in that country. About 20 per cent of production will be exported to the US, Canada and Europe, where it will be sold through supermarkets and restaurant chains. He said the remaining 10 per cent would be sold in Thailand through the distribution channels of Pran Talay Marketing Co Ltd, a wholly owned subsidiary of UFP. Pran Talay Marketing has 140 kiosks nationwide and plans to increase the number to 200 kiosks this year. Matsumoto said Kyokuyo decided on Thailand for a joint venture because of its skilled workers, cheap wages and plentiful raw materials, all of which could help boost competitiveness in world markets. He said KUE had targeted revenues of Bt1.5 billion in its first year, of which Bt1.35 billion would come from exports and the rest from domestic sales. "In the next three years, the company plans to grow about 20 per cent annually," said Matsumoto, adding that the company also planned to achieve sales revenues of Bt8 billion, from 8,000 tonnes of products per year, after five years in operation. KUE managing director Apichart Taithong said the company would benefit from good-quality raw materials from UFP and high technology and know-how from Kyokuyo. It also has Board of Investment exemption from income tax for eight years. The company will export worldwide through the distribution channels of Kyokuyo and UFE and for the first three years plans to sell up to 35 per cent of its production in the US, Canada, Europe and Thailand. Kyokuyo president Kiyokazu Fukui said consumption of Japanese food is on the rise, because of a move to healthier lifestyles, particularly in the US and Europe. However, the company will focus on manufacturing value-added and easy-to-eat products for Japan, its major market. Chalida Ekvitthayavechnukul The Nation
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