Marubeni agrees on tie-up with Chinese firm on grain procurement+

TOKYO, April 12 Kyodo - Japanese trading house Marubeni Corp. said Sunday it has concluded a comprehensive tie-up agreement with a Chinese state-run firm for procuring grain for China's stockpiles.

It is the first time for China to sign a deal with a foreign company for
procurement of its food stockpiles.
Under the deal with Sinograin, the Chinese state-owned grain company, Marubeni
will procure grain from overseas for the country's stockpiles while the two
sides will make joint investments in distribution facilities such as at ports
and harbors in producer countries.
Marubeni is believed to be aiming at reinforcing its bargaining ability toward
producer countries and firms through exploring channels in the Chinese market
as well as making use of the deal toward the stable procurement of grains for
Japan.
Sinograin, meanwhile, apparently hopes to stabilize its grain imports by making
use of Marubeni's international networks.
==Kyodo