March 2001

Launch of New Ajinomoto Oil Mills Co.

Aiming to fundamentally strengthen its edible oils business, Ajinomoto Co., Inc. will separate its edible oil-related operations including sales and R&D functions and integrate them into the present Ajinomoto Oil Mills Co., Inc.    In addition, Kumazawa Seiyu Sangyo Co., Ltd., a wholly owned subsidiary of Ajinomoto, will simultaneously be merged into Ajinomoto Oil Mills.    Through these measures, Ajinomoto Oil Mills will be re-created as a fully integrated manufacturer with research, development, production and sales functions, positioning it to develop the edible oils business in the future.

Ajinomoto has operated the edible oils business as one division of a comprehensive food manufacturer. However, in the midst of fierce competition with specialized oil manufacturers, Ajinomoto must further increase its competitiveness in order to surpass these companies in areas such as cost, business expertise as an edible oil manufacturer, operating efficiency and management decision-making.

After experiencing a difficult period in fiscal 1998, the edible oil industry has benefited from the effects of extensive reengineering, which helped restore profits. Recently, Ajinomoto has also taken aggressive measures to further 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, increasing efficiency, and bolstering product development and sales, Ajinomoto believes that the structural reforms it is implementing will result in the best form for solidifying its competitiveness.

Ajinomoto Oil Mills will unify research, development, production and sales, and has set the management goal of being a leading company in Japan in terms of profitability. The company will bring together all the people involved in the business, and combine their efforts and studies to achieve this objective.

 

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