ITOCHU Corporation and ITOCHU (China) Holding Co., Ltd. (headquartered in Beijing, hereinafter referred to as "ICN") have adopted a strategic integrated system (SIS) as their basic strategy in the foodstuff field, and intend to deploy it in China as well as in Japan. (SIS is premised on the construction of a value chain that is grounded in customer wants and needs, and seamlessly links all operations from development of domestic and foreign food resources to processing/manufacture, intermediate distribution, and retailing.) For further promotion of the SIS strategy in China, the two have decided to transform Shanghai Zhongxin Marketing Development Co., Ltd. (hereinafter referred to as "Shanghai Zhongxin"), an all-around food wholesaler headquartered in Shanghai, into a consolidated subsidiary by acquiring a combined 80% of its stock (25% by ITOCHU and 55% by ICN).

In the context of its SIS strategy in China, we have positioned Shanghai Zhongxin as the core intermediate distribution firm in the Huadong (eastern) region. We plan to build up the firm's capabilities through input of ITOCHU Group’s management resources, including the wholesale business know-how accumulated in Japan, for reinforced competitiveness and accelerated growth in the field of food distribution.

The food product market in China, and particularly in the Huadong region centered around Shanghai, is seen as a massive site of consumption that is bound to exhibit further growth over the coming years. The construction of an intermediate distribution network in this growth market will add impetus to deployment of the SIS strategy for foodstuffs in China while further solidifying and broadening our Group’s business base in this field. In addition, for Japanese manufacturers considering the prospect of siting in China as a new market, we plan to provide all sorts of services through Shanghai Zhongxin in areas including product sales and marketing in its capacity as an all-around food wholesaler, and thereby support their siting. Furthermore, through partnership with manufacturers, intermediate distributors, and retailers already cooperating with its SIS strategy in this field in China (in the form of joint ventures or tie-ups), we hope to make our Group’s business foundation even stronger and wider.

Outline of Shanghai Zhongxin

• 2012
• 2011
• 2010
• 2009
• 2008
• 2007
• 2006
• 2005
• 2004