Japan-based surimi producer Ichimasa Kamaboko is planning to set up a joint venture (JV) with Kelola Mina Laut (KML) in Indonesia.
Expected to become operational in July 2016, the proposed JV KML Ichimasa Foods will produce and sell surimi-based products in Indonesia, Undercurrentnews reported.
KML Ichimasa Foods will primarily produce crab flavoured kamaboko (Kanikama) and deep fried products.
This will see around $3.4m in total capital, of which KML and Ichimasa will have 60% and 40% share, respectively.
Ichimasa was quoted by the site as saying: "Indonesia has the fourth largest population in the world and is one of the highest-potential markets."
Founded in 1994, KML owns close to 43 processing facilities and produces 15,000 metric tons of surimi annually, at its two plants.
Ichimasa anticipates that the JV will have a slight impact on its current financial result.