CHILE PLATAFORMA DE NEGOCIOS

“Mitsubishi Is Extremely Interested In Using Chile As An Investment Platform” Osamu Sasaki, President of Mitsubishi Chile:

Japan’s Mitsubishi has operated in Chile since the 1920’s when, through an office in the port of Valparaíso (Region V), it began to buy Chilean nitrates for export to Japanese farmers. But, from this early start, the group has since expanded -particularly in the 1980’s and 1990’s- into areas that range from copper mining and the production of iron ore pellets to the forestry industry and, most recently, lemon orchards. Through joint ventures with local or international companies, the Mitsubishi group has investments in Chile worth around US$ 90 million, estimates Osamu Sasaki, President of Mitsubishi Chile. “Like other foreign investors, we value Chile’s stability and security”, he says. And, he adds, Japanese expatriate executives appreciate Chile’s quality of life. But, recently, Mitsubishi has been looking with renewed interest at Chile as a platform from which to develop markets in other Latin American countries. “In that sense, the government’s promotion of Chile as a regional business center dovetails nicely with our own interests”, says Sasaki. Although the Mitsubishi group has subsidiaries in other Latin American countries, it is currently using Chile as a platform from which to launch new controlled-atmosphere technology for containers, patented by Mitsubishi Australia, that controls the level of oxygen, and is particularly useful for exporting fresh fruit and vegetables, such as avocados. Similarly, after introducing prototype Wireless Local Loop technology in Chile, Mitsubishi has formed a strategic alliance with a Chilean company, Teknos, to introduce it in other Latin American countries. According to Sasaki, Mitsubishi is particularly pleased with the results of its investments in Chile’s iron ore industry, where it is a partner to the local CAP group, and in copper mining. As well as holding a minority stake in the Escondida copper mine, controlled by BHP Billiton, Mitsubishi also partners the local Luksic group in the Los Pelambres mine. “These investments have been a particularly good experience and, as the executive who manages Mitsubishi’s local company, I’m very eager to look at other possible investments with Chilean partners, like the CAP and Luksic groups”, reports Sasaki. Mitsubishi also exports Chilean salmon, sea urchins, fishmeal and wine to Japan. And, although the group does not usually invest in food industries, it has formed a joint venture with Agricom, a Chilean fruit producer, to plant and export lemons. Chile’s key advantage in this area is, says Sasaki, that it produces fresh lemons at a time of year when exporters in the northern hemisphere can only provide stock that has been held in cold storage. As President of the Chilean-Japanese Chamber of Commerce and Industry, Sasaki reports that Japanese firms are anxious to be included in Chile’s growing network of Free Trade Agreements: “The APEC forum, of which both countries are members, is a bond, but it’s only psychologically important; what we would like to see is a Japan-Chile Free Trade Agreement”. According to Sasaki, the Chilean government is interested in starting negotiations, but the Japanese authorities, though they may be aware of the potential advantages, are still hesitant. “As businesspeople, we’re actively lobbying; Chile is an important market and we don’t want our competitors in Europe, the United States and South Korea to have an advantage”, he concludes.

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RODRIGO GONZALEZ FERNANDEZ
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