Agricultural Corporation Newly Established in Yatsugatake Highlands of Nagano Prefecture: Efficient Large-Scale Production Using Hydroponics and Direct Distribution Network to Be Developed
Jul 15, 2015
TOKYO, Japan - July 15, 2015 - ORIX Corporation (hereinafter, "ORIX"), a leading integrated financial services group, and Honda Engei Co., Ltd. (hereinafter, "Honda Engei"), an agricultural production corporation, announced that they have established the ORIX Yatsugatake Farm Corporation(hereinafter, "OYF") as an agricultural corporation and launched a hydroponics project in Nagano Prefecture's Suwa-gun Fujimi-machi.
OYF has started constructing a large commercial greenhouse and is planning to launch production of spinach, arugula, and other leaf vegetables for fresh consumption starting in August 2015. By using hydroponics to shorten the growing period, this project will make it possible to sell produce year-round with "four fixed factors" (fixed prices, fixed quality, fixed timing, and fixed quantities). The project will generate 19 harvests per year, for a total of approximately 430 tons of produce. Utilizing the ORIX Group's sales network and other channels, the vegetables that are produced will be sold on a stable basis to mainly retail and food service industry clients in the greater Tokyo and central Japan areas.
The project will be expanded in the future through means such as consolidating abandoned arable lands. The production and distribution of high-quality produce will contribute to the further expansion of employment opportunities in the region and branding efforts for local agricultural products.
Honda Engei is an agricultural corporation with an approximately 30-year history in Nagano Prefecture. It produces leaf vegetables like spinach and sells them to department stores, high-end supermarkets, and other retail outlets in the Tokyo and Chukyo areas. Using Honda Engei's accumulated production expertise as a foundation, the two companies will work together to facilitate the expansion, standardization, and mechanization of the project and build an efficient production framework.
ORIX has been operating a large commercial greenhouse that produces fresh tomatoes in Wakayama City, Wakayama Prefecture since October 2004, as well as a fully artificial light-based indoor cultivating facility for leaf lettuce and other vegetables in Yabu City, Hyogo Prefecture since March 2014. In March 2015, ORIX announced an agreement with Fujitsu Limited and other companies to begin joint discussions on the launch of a smart agriculture project applying ICT in Iwata City, Shizuoka Prefecture.
The agricultural sector is the subject of much expectation for its part in the Japanese government's growth strategy. Within this sector, ORIX and Honda Engei will not only continue to expand their production of agricultural products, but also develop competitive agricultural projects with high added value through the creation of new sales networks, and contribute to the growth of regional economies by resolving agricultural issues while striving for harmonious coexistence with local communities.
|Company Name||ORIX Yatsugatake Farm Co., Ltd.|
|Established||April 14, 2015|
|Location||1312 Tatsuzawa, Fujimi-machi, Suwa-gun, Nagano Prefecture|
|Ownership Structure||ORIX: 97%; Honda Engei: 3%|
|Planned Production Area||13,392 m2 (total of 2 construction phases)|
|Cultivation Technique||Solution culture hydroponics (pesticide-free)|
|Planned Products||Spinach, arugula, chrysanthemum greens, mizuna, watercress, etc.|
|Planned Shipping Destinations||Greater Tokyo and central Japan|
|Facility Completion||August 2015 (Phase 1); December 2015 (Phase 2)|
|Start of Cultivation||August 2015|
Corporate Planning Department
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group that provides innovative products and services to its customers by constantly pursuing new businesses. Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile-related, real estate and environment and energy-related businesses. Since its first overseas expansion into Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in a total of 36 countries and regions across the world. Moving forward, ORIX aims to contribute to society while continuing to capture new business opportunities. For more details, please visit our website: http://www.orix.co.jp/grp/en/
Caution Concerning Forward-Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under "Risk Factors" in the Company's annual report on Form 20-F filed with the United States Securities and Exchange Commission and under "4. Risk Factors" of the "Summary of Consolidated Financial Results" of the "Consolidated Financial Results April 1, 2014 - March 31, 2015."
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