SATS has signed a multi-year Memorandum of Understanding (“MoU”) to form a strategic alliance with Mitsui to jointly explore harnessing their respective strengths to grow their businesses.
SATS says that, under the MoU, it will explore the opportunities to tap into Mitsui’s extensive distribution network and supply sources to grow demand for its products and services and diversify SATS’ supply chain. Mitsui will also potentially harness SATS’ culinary, food technology, innovation, and production capabilities to provide value-added services to its customers and explore other opportunities with SATS that leverage its infrastructure and logistics businesses and assets in the Asia Pacific region.
The MoU is initially for a period of three years and is renewable for successive two-year extensions. President and Chief Executive Officer of SATS Ltd., Kerry Mok, said: “A strategic alliance with Mitsui provides SATS the opportunity to collaborate on developing new distribution channels for our products and services while exploring new procurement channels to ensure stable supply and better food security”.
Tsutomu Osada, Managing Officer, Chief Operating Officer of Retail Business Unit, Mitsui & Co., Ltd. commented: “Through a strategic alliance with SATS, SATS and Mitsui would have the opportunity to collaborate in a multitude of business fields across food, distribution, logistics, and other related services. Also, both parties will be able to contribute to enriching the quality of life for the communities in Asia and other regions by leveraging the capabilities of both parties.”