Malaysia: Sumitomo has taken a 60 percent ownership of Union Harvest Ltd., up from its previously held 20 percent. Area traders see the move as an effort by Sumitomo to not only take a larger share of the Malaysian NPK market, but to also position itself to better step into the larger Asian market.
Union Harvest has long been a supplier of special mixtures for the palm oil plantations in Malaysia. With the palm oil market showing steady and strong growth, sources speculate that Sumitomo wanted to cash in on that rise as quickly as possible.
Besides provided much-needed funds to Union Harvest, the Sumitomo investment is expected to allow for existing Union Harvest plants to be upgraded and for new plants to be built.