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Ajinomoto Co. Establishes Joint Venture in Indonesia to
Produce Cosmetic Ingredients* Strengthens Cosmetic Ingredients Business in Asia
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| *Cosmetic ingredients: the raw materials for personal care products such as shampoo and body soap.
Tokyo, October 1, 2012 - Ajinomoto Co., Inc. (Ajinomoto Co.) announced today that it concluded a joint venture agreement with PT Lautan Luas Tbk (LTL), a listed Indonesian chemical company, to establish PT Lautan Ajinomoto Fine Ingredients. This initiative will expand manufacturing capacity for cosmetic ingredients that use amino acids as raw materials in order to accommodate future expansion of the personal care market, particularly in Asia. The new company will be established during 2012, with plans to begin manufacturing cosmetic ingredients for personal care products in the second half of 2013. Initial and future investment is slated to total USD 6 million. Ajinomoto Co. currently supplies over 3,000 cosmetic ingredients in about 50 countries around the world. Demand is growing for Ajinomoto Co.'s cosmetic ingredients that use amino acids as raw materials with the trend in the personal care products industry toward natural raw materials derived from plants that are friendly to people and the environment, especially in Europe. Current production bases are the Kawasaki Plant and Tokai Plant in Japan. However, since further growth is also expected in emerging markets, particularly in Asia, Ajinomoto Co. decided to increase its current cosmetic ingredients supply capabilities about 30 percent by constructing production bases in Indonesia, which is a promising location as a market and a source of raw materials such as palm oil, a main raw material of cosmetic ingredients. As Ajinomoto Co.'s representative in the cosmetic ingredients business since 1997, joint venture partner LTL has built a relationship of trust with Ajinomoto Co. that spans 15 years. LTL is a comprehensive chemical company that stands out among Indonesian companies for its stable growth potential. The joint venture will leverage LTL's knowledge of chemical product manufacturing to establish Ajinomoto Co.'s first cosmetic ingredients production base in Asia outside Japan. Ajinomoto will continue to help customers have healthy skin and hair by supplying original amino acid-based cosmetic ingredients. Overview of the New Company
 For reference 1. What are cosmetic ingredients that use amino acids as raw materials? They are ingredients for cosmetics that originate from amino acids. Palm oil is a major raw material.  2. Sales scheme  Overview of PT Lautan Luas Tbk (As of 2011)
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 26 countries, Ajinomoto Co. had net sales of JPY 1,197.3 billion (USD 15.1 billion) in fiscal 2011. 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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