SPREAD Co., Ltd. has begun construction of the world's first large-scale Vegetable Factory that is fully automated from seeding to harvest and capable of producing 30,000 head of lettuce per day.

1. SPREAD's History

SPREAD was founded in 2006 and operates the world's largest Vegetable Factory using artificial lighting in Kameoka, Kyoto Prefecture. Currently four types of lettuce are produced totaling 21,000 head per day that are shipped in a stable manner to approximately 2,000 stores throughout the year.

2. Concept of New Factory Construction

SPREAD has specific environmentally friendly measures focused on global expansion, embarking on the construction of a next-generation Vegetable Factory.

3. Overview of SPREAD's New Factory

(1) Type of Vegetable Factory - Vertical farm wholly depending on artificial lighting (complete with R&D and testing facilities)

(2) Location - Kyoto

(3) Area - Approximately 4,400 square meters

(4) Product Item/Output - 30,000 head of lettuce per day

(5) Start of Construction - Spring in 2016

(6) Start of Shipments - Summer in 2017

(7) Total Investment - Approximately 1.6 to 2 billion yen (this estimated amount also includes R&D and testing facilities)

(8) Annual Sales - Approximately 1 billion yen (estimated amount)

(9) Energy - LED lighting

4. Innovations Implemented in New Factory

*Environmentally Friendly

(1) Recycling of Water - Recycling of 98% of the water used for cultivation in the factory is to  be made possible

*Low Cost

(1) Complete Automation of Cultivation Process - Labor cost has been reduced by 50% by fully automating the processes from seeding to harvest.

(2) Energy Efficiency - Energy cost reduced around 30% per head of lettuce with the use of LED lights specifically created for SPREAD and the development of a unique air conditioning system.

(3) Initial Investment Cost - Initial investment cost per head of lettuce reduced by 25%.

*All figures are compared with those of the Kameoka plant.

5. Future Plans

SPREAD will expand the scale of production to 500,000 head of lettuce per day in five years and will continue to expand our franchise business domestically and internationally.

About SPREAD

Name: SPREAD Co., Ltd.

Head Office: Kyoto, JAPAN

President& CEO: Shinji Inada

Capital: 87,400,000 JPY

For more information, please visit:

http://www.spread.co.jp/news/images/news_20150803en.pdf