Ajinomoto Co., Inc. Enters into Agreement to Subcontract the
Manufacture of Feed-Use Amino Acids to Meihua Holdings Group of China
 
Rebuilding the Global Supply Structure to
Accelerate Growth of the Animal Nutrition Business
TOKYO, August 3, 2017 – Ajinomoto Co., Inc. (“Ajinomoto Co.”) reached an accord with Meihua Holdings Group Co., Ltd. (“Meihua”), a major Chinese manufacturer of amino acid-related products, to subcontract the manufacture of feed-use lysine and feed-use threonine through Ajinomoto Animal Nutrition Group, Inc. (“AANG”), a consolidated subsidiary of Ajinomoto Co., and entered into an agreement today. Under the agreement, AANG plans to sell both products manufactured by Meihua in the global market under the Ajinomoto brand from fiscal 2018. Meihua is the second company to act as AANG’s manufacturing subcontractor for feed-use amino acids, and with the execution of this agreement, Ajinomoto Co. will rebuild its global supply system for feed-use amino acids, which are the foundation of its animal nutrition business.

As overall global consumption of meat continues to grow, demand for feed production and feed-use amino acids is expected to remain firm. Under these conditions, AANG intends to meet the diversifying needs of the market and its customers by offering a stable supply of feed-use amino acids in the global market and improve its ability to provide solutions from the customers’ perspective.

Under the FY2017-2019 Medium-Term Management Plan, Ajinomoto Co. is working to strengthen its business portfolio by establishing specialties in the AminoScience business, and is accelerating its shift to specialty in the animal nutrition business by conducting structural reforms that include the utilization of external resources. This agreement is a sound step forward in preparing for these objectives. As a leading global amino acids company, the Ajinomoto Group will contribute to the sustainability of food resources through the expansion of its animal nutrition business based on its proprietary technologies and customer network in the global market.

Reference
Overview of Meihua Holdings Group Co., Ltd.
(1) Location: Langfang City, Hebei Province, People’s Republic of China
(2) Established: 2002
(3) Representative: Wang Aijun, Chairman of the Board
(4) Capital: CNY 3.1 billion (approximately JPY 50.8 billion*)
* CNY 1 = JPY 16.38 (exchange rate as of July 31, 2017)
(5) Stock listing: 2010 (Shanghai Stock Exchange)
(6) Businesses: Manufacture and sales of amino acids, seasonings and other products

Overview of Ajinomoto Animal Nutrition Group, Inc.
(1) Location: Chuo-ku, Tokyo
(2) Established: 2011
(3) Representative: Mitsunobu Suzumi, President
(4) Capital: JPY 1,334 million
(5) Equity ownership: Ajinomoto Co., Inc. 100%
(6) Businesses: Animal nutrition business and supervision/control of such business, including feed-use amino acids, through ownership of the stock of companies that operate it

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 30 countries and regions, Ajinomoto Co. had net sales of JPY 1,091.1 billion (USD 10.07 billion) in fiscal 2016. 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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