November 19, 2001

Ajinomoto Co., Inc.

Reinforcing Production Organization for Nucleic Acid-based Seasonings

Construction of New Factory in Thailand; Reorganization, Improved Efficiency at 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 base 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 organization for nucleic acid-based seasonings, a type of umami seasoning, with the aim of bolstering cost competitiveness and increasing global demand. Specifically, the Company plans to build a new factory for nucleic acid-based seasonings inside the third factory (Location: Kamphaeng Phet) of Ajinomoto Co., (Thailand) Ltd. (Head office: Bangkok), an Ajinomoto Group company. At the same time, Ajinomoto plans to reorganize its plants in Japan for the manufacture of nucleic acid-based seasonings, with the aim of making production more efficient.   A feature of nucleic acid-based seasonings is the strong, rich 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 flavorings. Demand for nucleic acid-based seasonings has increased rapidly in recent years in tandem with the growth of the processed foods market, and stable growth is anticipated for the future.   Ajinomoto sells nucleic acid-based 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 organization and reorganizing and improving efficiency at its plants in Japan.   The factory in Thailand is scheduled for completion in 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 factory will carry out manufacturing and supply both for Thailand and for other countries. Thailand was chosen as the location for the new factory because the country produces tapioca starch, a core material for manufacturing nucleic acid-based seasonings, thus making it advantageous in terms of materials procurement, and because Ajinomoto Co., (Thailand) Ltd. has a solid management and technological base.   By reinforcing its production organization for nucleic acid-based seasonings and further strengthening the global sales and service organization built by AJI-NO-MOTO, Ajinomoto Co., Inc. aims to be number one in the umami seasonings business by an overwhelming margin.

 

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