APD | Japan’s Mitsui Group plans to expand investment in Australia

By APD writer Alice

Japan’s Mitsui Group has planned to spend another 3.5 billion USD in expanding its operations in Australia, the latest move in a wave of Japanese investment in the land of kangaroos.

According to Chairman CEO of Mitsui Australia Noboru Katsu, Mitsui currently has 25 joint ventures operating in Australia in areas such as iron ore, liquefied natural gas (LNG), coal, oil and gas, power generation, construction and mining machinery, chemicals, steel products, timber, salt, beef and financial services. Katsu said Mitsui last year invested 2.5 billion AUD in Australia, mostly in resources exploitation projects.

The Tokyo-based global conglomerate has poured about 15 billion AUD into Australia over the past decade and 50 percent of its global income comes from doing business here. Mitsui is currently the fourth largest exporter in Australia, shipping resources and food worth 8 billion AUD (5.4 billion USD) per year, mainly to Asia.

The CEO said that Mitsui focuses on investing in Australia because it has abundant energy and food as well as potential for long-term joint ventures. In the next few years, the number of Mitsuit's joint ventures in Australia may reach 30.

Mitsui's strategy is to buy minority stakes in joint ventures in Australia specializing in producing resources or food that Japan needs and then support these joint ventures in selling products to Japan. The group will also invest in the same way in new sustainable technologies being developed by Australian companies.

(ASIA PACIFIC DAILY)