Sojitz singles out agrochemicals for business expansion

Sojitz Corp. says it intends to expand the agrochemical business that it inherited from the former Nissho Iwai, one of two companies that merged to form Sojitz, with a goal of annual consolidated sales of ¥45 bn ($48mn) after five years.

The strategy falls under the Tokyo-based trading house’s drive to strengthen its operations in the high-growth-potential field of life sciences, which include agrochemicals and pharmaceuticals, to secure stable earnings amid the profitability uncertainties of general-purpose chemicals.

On the international front, it plans to intensify its dealing in the agrochemical intermediates of Indian and Chinese manufacturers as their agents while, at home, it will forge closer cooperative ties with domestic agrochemical makers to put in place a network for formulation and distribution.

Sojitz also is considering extending its activities into the area of generic versions of off-patent products, with investments in the information necessary for registration such as material safety data, while lining up a marketing strategy for value-added branded products. It target markets in the Asian, Middle East and African regions that are promising as food-supply centers.