Pasco, a Japanese bread manufacturer, has jointly announced with Itochu Corporation that the two companies will cooperate with China's Ting Hsin International Group to explore China's bread market.
Pasco, Itochu Corporation, and Wei Chuan Corp., a subsidiary of Ting Hsin International Group, will jointly invest JPY1.1 billion to establish a joint venture in September 2008. Of the total investment, Wei Chuan, Pasco, and Itochu will contribute 60%, 24%, and 16%, respectively.
The factory of the joint venture, which is expected to be put into production in February 2010, is planned to be in Shanghai. The factory will manufacture Wei Chuan-Pasco bread brands, including sliced bread and Pasco bread snacks. These products will be sold in convenience stores and supermarkets.
A representative from Pasco said that the Chinese bread market has a great potential and the company is pleased to offer safe and high-quality bread products. This cooperation between Chinese and Japanese companies will form one of the biggest bread manufacturers in China and the goal of the joint venture is to become the leader in China's bread industry.