Ajinomoto Group Company Amoy Food Ltd. to
Begin Production of Frozen Foods in Hong Kong
Increase in Productivity with Move from Shenzhen to
Strengthen Overseas Business
TOKYO, September 5, 2013 ― Ajinomoto Frozen Foods Co., Inc. (Ajinomoto Frozen Foods Co.) will move production of frozen foods at Shenzhen Amoy Foods Co., Ltd., which is an Ajinomoto Group company, to the Hong Kong Plant of Amoy Food Ltd., another Group company. Production will start in September 2013.

With this move to Amoy Food Ltd., Ajinomoto Frozen Foods Co. plans to increase productivity by automating the production line, while maintaining product quality. In addition, the move will bring together at Amoy Food Ltd. the previously dispersed functions of development (Amoy Food Ltd.), production (Shenzhen Amoy Foods Co., Ltd.) and sales (Amoy Food Ltd.). By conducting integrated operations from production to sales, Ajinomoto Frozen Foods Co. will work to further enhance competitiveness and expand its overseas business.

Ajinomoto Frozen Foods Co. has produced frozen foods at Shenzhen Amoy Foods Co., Ltd. since the acquisition of Amoy Food Group, which it carried out with Ajinomoto Co., Inc. (Ajinomoto Co.) in 2006. However, upon the expiration of its lease for the land and building, Ajinomoto Frozen Foods Co. will move production to the Hong Kong Plant of Amoy Food Ltd., which conducts sales of frozen food.

As a result, Ajinomoto Frozen Foods Co. will be able to reduce its foreign currency risk on translation from the Chinese renminbi to the Hong Kong dollar (HKD)* and other currencies and expects to accelerate development and supply with integrated operations from production to sales.

Products produced by Amoy Food Ltd. are exported to North America and Australia in addition to being sold in their main market of Hong Kong.
* HKD 1 = JPY 12.65 (rate as of July 31, 2013)

Under the FY2011-2013 Medium-Term Management Plan, the Ajinomoto Group's frozen foods business is promoting stable growth of operations in Japan and accelerating expansion overseas. Following the previously announced strengthening of the consumer foods business in North America and the start of production in Europe, the frozen foods business is strengthening operations in the Asian market, primarily in Hong Kong, and aims to quickly achieve a 20 percent overseas sales ratio by accelerating overseas business development.


Overview of Amoy Food Ltd.
(1) Company name:Amoy Food Ltd. (wholly owned by the Ajinomoto Group since 2006)
(2) Location:Hong Kong
(3) Established:1908
(4) Representative:Junichiro Tokiwa, Chairman
(5) Main business:Manufacture and sale of seasonings and frozen food products

Overview of Amoy Foods Ltd.'s New Frozen Food Plant in Hong Kong
(1) Start of operation:September 2013 (scheduled)
(2) Capital investment:HKD 45 million (approximately JPY 570 million)
(3) Number of employees:Approximately 300
(4) Site area:Land 4,600㎡; Building 11,500㎡
(5) Item to be produced:Dim sum

Overview of Ajinomoto Frozen Foods
(1) Company name:Ajinomoto Frozen Foods Co., Inc.
(2) Location:7-14-13 Ginza, Chuo-ku, Tokyo, Japan
(3) Established:1972
(4) Incorporated:2000
(5) Capital:Approximately JPY 9.5 billion
(6) Equity ownership:Wholly owned by Ajinomoto Co., Inc.
(7) Net sales:JPY 114.8 billion (fiscal 2012)
(8) Representative:Hidetora Yoshimine
(9) Main business:Manufacture and sale of frozen food products
(10) Number of employees:Approximately 1,000

Shenzhen Amoy Foods Co., Ltd. is scheduled to be liquidated in June 2014.
For further information, please contact here.
 
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