SATS Ltd. (SATS) has announced a multi-year Memorandum of Understanding (MOU) to form what it called a "strategic alliance" with Mitsui & Co., Ltd. (Mitsui) to jointly explore harnessing their respective strengths to grow their businesses.

In a statement, SATS said both companies would jointly explore various opportunities, which include strengthening the food value chain — such as diversifying supply sources, developing innovative products and services, and expanding sales and distribution channels — to grow their food and retail business.

The MOU is for an initial three years and renewable for successive two-year extensions.

SATS is a major food solutions and gateway services provider in Asia, offering a wide range of food and ground handling services to a broad spectrum of customers, from aviation to institutions, food service and retail.

Meanwhile, Mitsui is one of the largest global trading and investment companies with a diversified portfolio ranging from product sales, worldwide logistics and financing to the development of major international infrastructure and other projects in the mineral & metal resources, energy, infrastructure projects, mobility, chemicals, iron & steel products, food, retail, wellness, IT & communication business, and corporate development industries.

"Under this MoU, SATS will explore the opportunities to tap into Mitsui's extensive distribution network and supply sources to grow demand for its products and services and diversify SATS' supply chain," it said in a statement.

It added that Mitsui would potentially harness SATS' culinary, food technology, innovation, and production capabilities to provide value-added services to its customers.

Mitsui will also explore with SATS other opportunities that leverage its infrastructure and logistics businesses and assets in the Asia Pacific region.

"A strategic alliance with Mitsui provides SATS the opportunity to collaborate on developing new distribution channels for our products and services while exploring new procurement channels to ensure stable supply and better food security," said Kerry Mok, president and chief executive officer of SATS Ltd.

Tsutomu Osada, managing officer and chief operating officer of the Retail Business Unit, Mitsui & Co., Ltd., for his part noted that through a strategic alliance with SATS, the companies would "have the opportunity" to collaborate in a multitude of business fields across food, distribution, logistics, and other related services.

"Also, both parties will be able to contribute to enriching the quality of life for the communities in Asia and other regions by leveraging the capabilities of both parties," Osada added.