Sats Ltd S58 and Mitsui have signed a multi-year memorandum of understanding (MoU), forming a strategic alliance to jointly explore harnessing their respective strengths in growing their businesses.
Under the MoU, Sats will seek the opportunities to tap into Mitsui’s extensive distribution network and supply sources to grow demand for its products and services, as well as to diversify its supply chain.
Meanwhile, Mitsui will potentially harness Sats’ culinary, food technology, innovation and production capabilities to provide value-added services to its customers.
Mitsui will also identify other opportunities with Sats that leverage its infrastructure and logistics businesses and assets in the Asia Pacific region.
“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,” says Sats president and CEO Kerry Mok.
The MoU is for an initial three years and renewable for successive two year extensions.
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Shares in Sats closed 2 cents lower or 0.71% down on Apr 5 at $2.79.
