China's JD Group and Japan's Mitsubishi Chemical Holdings Group will begin working together on large-scale vegetable growing services.
With the cooperation, JD will tap the vegetable production sector, while Mitsubishi Chemical will provide related plant factory and cultivation techniques to the Chinese e-commerce group.
JD will build its own plant factories in Beijing, Shanghai, and Guangzhou to expand its fresh food business. For the first step, the company plans to build a plant factory in Beijing's Tongzhou area, with an area of about 10,000 square meters. With an investment of about JPY800 million, which is about CNY49 million, this factory is expected to put be into operation before the spring of 2018.
Mitsubishi Chemical will offer a hydroponic cultivation system. Meanwhile, it will provide technical support in seed selection, planting, harvesting, and packaging. In addition, the Japanese company will be responsible for sanitary control and vegetable production records management.
By relying on its own cultivation and logistics network, JD will be able to further enhance the freshness and quality of its food products.
Mitsubishi Chemical's plant factory business boasts annual sales of JPY1.5 billion. The company entered the Chinese market with a joint venture in 2014.
