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Nisshin purchases flour mill in Thailand

TOKYO, JAPAN — Nisshin STC Flour Milling Co. Ltd., the Thai subsidiary of Nisshin Seifun Group’s Nisshin Flour Milling Co., announced on March 22 that it has acquired a flour milling plant from Pacific Flour Mill Co., Ltd. in Thailand.
With the acquisition, Nisshin STC Milling more than doubled its current production capacity to 630 tonnes per day, Nisshin said.  

Nisshin noted that the recently purchased plant, which has production capacity of 350 tonnes per day (wheat equivalent), is located near Thailand’s largest port, Laem Chabang.

The company said the acquisition “would contribute to its growth strategy” in Thailand.

Nisshin Flour Milling established Nisshin STC Milling and entered the Thai market in 1991.

“With the recent strong economic development of Thailand and nearby ASEAN countries in the background, food-life is diversifying, and opportunities to consume food products utilizing flour, such as bread, sweets and noodles, are increasing in addition to those for the staple food, rice,” Nisshin said. “Nisshin STC Milling recognized this trend, and in January 2013, increased production capacity by 20%. However, in order to respond to further increasing demand for flour, a new growth strategy, which included production capacity increases, was required.”
Cost of the acquisition was 525 million baht ($16.8 million), Nisshin said.

The acquisition of the mill in Thailand brings daily production capacity for Nisshin’s overseas flour mills to about 8,600 tonnes.

“With this acquisition, this Group further accelerates the expansion of its flour milling business in Southeast Asia, which is a promising market showing remarkable growth,” Nisshin said. “Moreover, we will increase our focus on overseas development going forward without limiting ourselves to Southeast Asia.”

Nisshin’s Canadian subsidiary, Rogers Foods, recently completed an expansion of its flour mill in Chilliwack, British Columbia. In October 2016, the company’s U.S. subsidiary, Miller Milling Co., announced the addition of a new line at its plant in Saginaw, Texas, U.S.


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