November 2000
Establishment of Ajinomoto Oil Mills Co., Inc.
1.	Overview    In an effort to fundamentally strengthen its edible oils business, Ajinomoto Co., Inc. will separate its edible oils-related business department, sales and R&D from the company, and integrate them into Ajinomoto Oil Mills Co., Inc. on April 1, 2001.    In addition, Kumazawa Seiyu Sangyo Co., Ltd., a wholly owned subsidiary of Ajinomoto, will simultaneously be merged into Ajinomoto Oil Mills.
	This will result in the creation of a renewed Ajinomoto Oil Mills Co., Inc. with research, development, production and sales capabilities. The company will thus be well equipped to carry out the edible oils business into the future.
2.	Purpose    In the oils and fats business in Japan, with the exception of Ajinomoto and a few other manufacturers, supply is dominated by specialized oil manufacturers.    Amid intense competition with these specialized companies, Ajinomoto has operated its edible oils business as one division of a comprehensive food manufacturer. However, in order to surpass these specialized manufacturers in the areas of cost competitiveness, business expertise as an edible oil manufacturer, efficiency in operation and management decision-making, it is necessary for Ajinomoto to further raise its competitiveness.
	The oils and fats industry in Japan fell into the red during fiscal 1998 due to severe competitive conditions, but drastic reengineering and efforts to increase earnings have led to the recovery of profits. Ajinomoto recently has also taken aggressive steps to reduce costs, strengthen sales and bring new products to market. However, the market is shifting to a situation where conventional ways of competing are becoming less relevant, exemplified by the introduction of powerful products for the household edible oils market from companies in other industries.    Against this backdrop, in view of the urgency of reducing costs, streamlining operations, increasing efficiency and bolstering product development and sales, Ajinomoto concluded that the planned reorganization is the best way to further solidify its competitiveness.    The new company will unify research, development, production and sales, and will aim to be a leading company in Japan in terms of profitability. The company will bring together all the people involved in the edible oils business, and combine their efforts and studies to achieve this objective.
Profile of New Company
	Name: Ajinomoto Oil Mills Co., Inc. Head office: 19-5, Kyobashi 1-chome, Chuo-ku, Tokyo Spin-off date: April 1, 2001 Representatives: Chairman: Sadakazu Miyamoto (currently Managing Director and Deputy General Manager, Food Products Div., Ajinomoto Co., Inc.,) President: Shinji Sasaki (currently Director and General Manager, Oil and Fat Dept., Food Products Div., Ajinomoto Co., Inc.) Capital: ¥12.0 billion (100% by Ajinomoto Co., Inc.) Net sales: ¥60.0 billion Number of employees:  Approximately 350 Business description: Research, development, manufacturing and sale of oils and fats
[For reference]
1.	Profile of present Ajinomoto Oil Mills Co., Inc.
	Name: Ajinomoto Oil Mills Co., Inc. Head office: 7-41, Daikokucho, Tsurumi-ku, Yokohama-shi, Kanagawa Date of establishment:  February 21, 1968 President: Nobuyoshi Iwasaki Capital: ¥10.4 billion (100% by Ajinomoto Co., Inc.) Net sales: ¥40.0 billion Number of employees:  180 Business description: Manufacturing of oils and fats, processed foods, animal feed, fertilizer and its by-products; real estate rental
2.	Profile of present Kumazawa Seiyu Sangyo Co., Ltd.
	Name: Kumazawa Seiyu Sangyo Co., Ltd. Head office: 2-2, Suehirocho, Yokkaichi-shi, Mie Prefecture Date of establishment: March 28, 1942 President: Soichiro Asai Capital: ¥240 million (100% by Ajinomoto Co., Inc.) Net sales: ¥5.0 billion Number of employees:  50 Business description: Manufacturing, processing and sale of oils and fats and by-products

 

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