Ajinomoto Co., Inc. Agrees to Establish a Cysteine Hydrochloride Production Company as a Joint Venture with Nippon Rika Co., Ltd.

TOKYO, February 8, 2016 – Ajinomoto Co., Inc. (“Ajinomoto Co.”) has agreed to establish a production company for Cysteine Hydrochloride through a joint venture with Nippon Rika Co., Ltd. (“Nippon Rika”). The companies signed a joint venture business agreement on February 2, 2016. The joint venture company is scheduled to begin operations in the second half of FY2017.

Cysteine is an amino acid that is widely used as a raw material for pharmaceuticals, food products and flavorings. Cysteine extract from raw materials of animal origin is mainly used in the market. This extract is mostly produced in China, and the risk of an unstable supply is increasing due to factors such as stronger environmental regulations in recent years, exchange rate fluctuations and rising labor costs.

Demand for Cysteine of non-animal origin has been rising in recent years, mainly for flavorings, but supply is insufficient globally. In 2013, Ajinomoto Co. began producing Cystine, which is a raw material of Cysteine, using a fermentation process. An Ajinomoto Group company, Nippon Protein Co., Ltd., has been meeting the needs of the market by producing Cysteine derivatives¹ using Cystine produced through fermentation as a raw material. However, the company has already reached the limit of its production capacity in meeting growing demand, and expanding production has become a pressing issue. On the other hand, Nippon Rika is a pioneer in Cysteine production, having produced Cysteine derivatives mainly for pharmaceutical raw materials since the 1960s. By establishing a joint venture, Ajinomoto Co. and Nippon Rika will take advantage of the fermentation technologies of Ajinomoto Co. and the Cysteine production technologies that Nippon Rika has accumulated over many years to expand production capacity of non-animal origin Cysteine Hydrochloride² and meet market needs.

As a leading amino acids company, the Ajinomoto Group will use its core fermentation technologies to promote a shift to fermentation of all amino acids and to continue to provide high-quality amino acids.

Reference

Ajinomoto Co. is a global manufacturer of high-quality seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals. For many decades Ajinomoto Co. has contributed to food culture and human health through wide-ranging application of amino acid technologies. Today, the company is becoming increasingly involved with solutions for improved food resources, human health and global sustainability. Founded in 1909 and now operating in 26 countries and regions, Ajinomoto Co. had net sales of JPY 1,006.6 billion (USD 9.17 billion) in fiscal 2014. For more about Ajinomoto Co. (TYO: 2802), visit www.ajinomoto.com.

For further information, please contact here.