Ajinomoto Co., Inc. to Expand Production of
Menu-Specific Seasoning Sajiku® in Indonesia
Investment of Approximately JPY 2.5 Billion for an Approximately 80% Increase in Production Capacity
Start of Construction in June 2016, with Operation Scheduled to Begin in December 2017
Sajiku®
Left: Seasoned flour
Right: Nasi goreng (fried rice) seasoning

TOKYO, June 23, 2016 – P.T. Ajinomoto Indonesia, a consolidated subsidiary of Ajinomoto Co., Inc. (“Ajinomoto Co.”), will invest approximately IDR 307.7 billion (approximately JPY 2.5 billion) to build a new factory to produce menu-specific seasoning Sajiku® at its Karawang Factory (West Java), thus increasing total production capacity together with its existing Mojokerto Factory (East Java) by approximately 80%. In addition to meeting brisk demand, having production at two locations will establish a stable and efficient supply system for all of Indonesia.

The population of Indonesia is the world’s fourth largest at approximately 250 million (2014), and is expected to reach approximately 270 million in 2020. The country’s GDP is more than USD 3,500 per capita, and an annual economic growth rate of 5-6% is forecast (source: IMF World Economic Outlook Database 2015). Supported by increased purchasing power associated with economic development, Indonesia’s menu-specific seasonings market is expanding, with approximately 24% average annual growth in the market for seasoned flour due to more frequent consumption (for fiscal 2013 to fiscal 2015, Ajinomoto Co. estimate). At the same time, the market for other menu-specific seasonings such as nasi goreng (fried rice) grew at an average annual rate of 22% over the same three-year period (Ajinomoto Co. estimate), and the menu-specific seasonings market is expected to continue to expand due to rising demand from people who want to enjoy delicious food that is easy to prepare.

The Sajiku® series of menu-specific seasonings was launched in 1999, and currently P.T. Ajinomoto Indonesia sells three varieties of seasoned flour and 11 other types of menu-specific seasonings. Sales volume grew at an average annual rate of 23% from fiscal 2012 to fiscal 2015, and is expected to continue to rise due to introduction to new users and increased purchases by existing users. The new factory will produce mainstay varieties including seasoned flour and nasi goreng seasonings. The factory will further promote automation and mechanization to raise productivity, and intends to strengthen traceability functions in addition to its existing thorough quality management to ensure that its products are safe and trustworthy. P.T. Ajinomoto Indonesia will construct a walkway for tours inside the factory so that customers can see and learn about these measures.


In its FY2014-2016 Medium-Term Management Plan, the Ajinomoto Group positions Indonesia as one of its “Five Stars” (core countries in ASEAN and Latin America), its major growth drivers. The Ajinomoto Group aims for rapid growth by tripling net sales in the consumer foods business in Indonesia by fiscal 2020, compared with fiscal 2012. The Ajinomoto Group will continue to contribute to well-being in each country by providing more delicious, higher-quality products.

Overview of Capital Investment
(1) Location: P.T. Ajinomoto Indonesia Karawang Factory (Karawang International
Industrial City, Karawang, West Java)
(2) Amount of investment: Approximately IDR 307.7 billion (approximately JPY 2.5 billion)
Note: IDR 1 = JPY 0.0081 (as of May 31, 2016)
(3) Production capacity: Approximately 80% increase from current capacity (two-factory total)
(4) Start of operation: December 2017 (scheduled)

Reference

Overview of P.T. Ajinomoto Indonesia
(1) Name: P.T. Ajinomoto Indonesia
(2) Location: Jakarta, Republic of Indonesia
(3) Established: 1969
(4) Representative: Kaoru Kurashima, President
(5) Number of employees: Approximately 1,360 (as of March 31, 2016)
(6) Business description: Manufacture and sale of seasonings and other products (umami seasoning
AJI-NO-MOTO®, flavor seasoning Masako®, menu-specific seasoning Sajiku®,
liquid seasoning SAORI®, etc.)


About Ajinomoto Co.
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 27 countries and regions, Ajinomoto Co. had net sales of JPY 1,185.9 billion (USD 9.87 billion) in fiscal 2015. For more about Ajinomoto Co. (TYO: 2802), visit www.ajinomoto.com.

For further information, please contact:
Ajinomoto Co., Inc. Public Communications Department; pr_info@ajinomoto.com
 
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