USA – NIPPN Corp., one of the largest flour millers in Japan, is entering the U.S. flour milling market through a US$ 25 million (3.3 billion yen) investment for a 25% stake in Utah Flour Milling, Just Foods reports.
Utah Flour is a newly planned flour mill to be constructed by PHM Brands LLC, a vertically integrated agriculture and biotech company and owner of multiple subsidiaries including Panhandle Milling.
According to NIPPN, it will invest and participate in the operation of Utah Flour as a business and strategic partner. The facility is expected to be completed in the fall of 2024 noting that the plant’s daily flour production capacity will be 7,500 cwts.
NIPPN said the mill will be a state-of-the-art flour mill featuring leading-edge technology, including patented pathogen-reduction biotechnology from Energis Solutions, a subsidiary of PHM Brands.
During the announcement, NIPPN revealed that it is committed to realizing its long-term vision of “business expansion in North America and business development including inorganic growth strategy” through this investment.
Commenting on its investment in Utah Flour, NIPPN stated that it sees this investment as boosting its overall strength as a flour miller via direct engagement with a U.S. flour milling business.
Additionally, the move will accelerate business growth by leveraging synergies among its existing food companies: NIPPN California Inc., a California-based premix sales company; and Pasta Montana, L.L.C., a Montana-based pasta production and sales company.
It also will serve to strengthen the group’s network with a view toward further global expansion.
Along with Nisshin, Nitto Fuji, and Showa Sangyo, NIPPN is one of the top four flour companies in Japan (ranking second behind Nisshin), which together account for 75% of the domestic flour milling market, with NIPPN’s seven flour mills accounting for approximately 24%.
In Nippn’s 2022/23 financial year, it generated net sales of Y321.32bn ($2.33bn), an operating income of Y11.28bn, and a net income of Y9.33bn.
According to PHM Brands LLC, the investment is timely following the recent announcement that its former chief legal officer Gina Steffens would succeed John Mason and Bryan Ledgerwood in the role of CEO as part of a restructuring that involved returning the business to its core of flour milling.
“We have recently been more vocal that we are returning our focus to our core, which is flour milling,” said Steffens during the restructuring.