Production Reinforcement for Nucleotides Seasonings Construction of New Plant in Thailand & Reorganization of Plants in Japan

Aiming to become a global corporation in food and amino acid products from its origins in Japan, Ajinomoto Co., Inc. is developing its businesses globally. Among these activities, Ajinomoto has given the highest priority to strengthening its business basis and further improving its market position for the world's top brand of umami seasoning, and the Company is working to achieve these objectives. Currently, Ajinomoto is reinforcing its production of nucleotides seasonings, a type of umami seasonings, with the aim of bolstering cost competitiveness and meeting the global demand which has been increasing consistently. Specifically, the Company plans to build a new plant of nucleotides seasonings with new technology, inside the third plant (Location: Kamphaeng Phet) of Ajinomoto Co., (Thailand) Ltd. (Head office: Bangkok) which is one of Ajinomoto Group companies. At the same time, Ajinomoto plans to reorganize its plants of nucleotides seasonings, with the aim of more efficient production. A feature of nucleotides seasonings is the strong and rich umami flavor they produce when used together with monosodium glutamate (MSG) because of the synergy between the two ingredients. They are widely used in processed foods such as umami seasonings, soups (including soup for instant noodles), bouillon and flavored seasonings. Demand of nucleotides seasonings has increased rapidly in recent years in tandem with the growth of the processed foods market, and stable growth is anticipated in the future. Ajinomoto sells nucleotides seasonings in approximately 100 countries worldwide through its sales channels for AJI-NO-MOTO, and as with MSG, it maintains the top share. However, due to intensifying competition over the past few years, the Company intends to further strengthen its earnings base by reinforcing its production and improving efficiency at its plants in Japan. The plant in Thailand is scheduled for completion in the middle of year 2003 at a total capital investment of approximately 2.2 billion baht (approximately ¥6 billion), with an annual production capacity of approximately 3,000 tons. As a new production base, the plant will carry out manufacturing and supply both for Thailand and for other countries. Thailand was selected as the location for the new plant firstly because the country produces tapioca starch, a core raw material for manufacturing nucleotides seasonings, thus making it advantageous in terms of materials procurement, secondly because Thai government prepares incentives for export industries, and thirdly because Ajinomoto Co., (Thailand) Ltd. has a solid base of management and technology. By reinforcing its production of nucleotides seasonings and further strengthening the global network of sales and service established by AJI-NO-MOTO, Ajinomoto Co., Inc. aims to be number one in the umami seasonings business by an overwhelming margin.