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• Entry Made into Functional Food Market in Collaboration with Largest General Food Processing Company in Korea - Food Business Expands through Establishment of Xylose Manufacturing Company -

Entry Made into Functional Food Market in Collaboration with Largest General Food Processing Company in Korea - Food Business Expands through Establishment of Xylose Manufacturing Company -

2010-02-25

Toyota Tsusho Corporation (hereinafter referred to as "Toyota Tsusho"; Headquarters: Nagoya City; President: Junzo Shimizu) enters into the manufacturing and sales business of xylose, a natural functional sweetener extracted from coconut tree husks, through the establishment of a joint venture company with CJ CheilJedang Corp., (hereinafter referred to as "CJ"), the largest general food processing company in Korea.

Toyota Tsusho established the new company, CJ Toyota Tsusho Philippines Inc. (hereinafter referred to as "CJTPI"), in the Province of Davao del Sur of the Philippines in September of 2009. The ground breaking ceremony for the new manufacturing plant is to take place on February 26, 2010.

Xylose is a low calorie functional sweetener found in nature. This substance is used as a raw material for xylitol, which primarily consists of sugar alcohol. The establishment of the new joint venture company will enable Toyota Tsusho to promote the cultivation of overseas markets in the food industry by utilizing their global network, taking advantage of the technical capabilities, along with the research and development abilities of CJ, as well as through the establishment of the strategic partnership culminating from an amalgamation of the brand powers and sales networks of both companies.

In order to expand the business, Binggrae Co., Ltd. (hereinafter referred to as "Binggrae"), another Korean company and a principal dairy product manufacturer in Korea, as well as Anflo Management & Investement Corp., (hereinafter referred to as "Anflocor"), a principal conglomerate located in Davao City of the Philippines, were also invited to join the business venture as partners.

The market for "xylitol", which uses xylose as an ingredient, is currently 60,000 tons globally, with Europe utilizing 30,000 tons and Asia utilizing 27,000 tons. Growth in the Asian region is expected in the future, with chewing gum and oral care product markets increasing. The development for new applications of xylitol is also being explored, which will only increase the demand for xylose, the raw material.

The new company has been established with a total investment amount of about JPY4.2 billion and it is expected to produce about 15,000 tons of xylose each year. Operations are expected to start within this year. Efforts will be made in the future to draw on the trading functions nurtured over the years and to utilize such competitively advantageous functions as "technologies and manufacturing", as well as the "branding" and "sales" capabilities of strong partners, to establish as the operating body of the business venture a global value chain for the stable procurement of food.

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