TOKYO, October 20, 2017 – Ajinomoto Co., Inc. (“Ajinomoto Co.”) has decided to build a new plant for manufacturing and packaging seasonings and other products on the premises of its Tokai Plant, in accordance with the details announced in its September 29, 2017 press release entitled “Ajinomoto Group to Restructure Seasonings and Processed Foods Production System in Japan.”
Ajinomoto Co. is restructuring the value chain of its Japan Food Products business as one of the key strategies in its FY2017-2019 Medium-Term Management Plan. Under this policy, it is consolidating and restructuring the production system of its Japan Food Products business at a total capital investment of approximately JPY 40 billion. As a specific measure, Ajinomoto Co. will establish a new integrated manufacturing and packaging plant for seasonings and other products on the premises of the Tokai Plant to consolidate the production functions of the Kansai Plant of AJINOMOTO PACKAGING INC. Ajinomoto Co. will invest approximately JPY 15 billion in construction of the new plant and effectively apply leading-edge technologies, including ICT and automation, to approximately double current labor productivity by fiscal 2020, with the aim of achieving a world-class level of production. Moreover, through the introduction of a manufacturing process for smooth and efficient product switchover, the plant will achieve flexible production and reduce both food loss and inventories of raw materials and intermediate products. This measure is expected to improve EBITDA by approximately JPY 2.5 billion annually from fiscal 2022 onward.
To realize its corporate message, “Eat Well, Live Well.” the Ajinomoto Group will restructure its value chain to support the sustainable growth of its businesses and steadily deliver products that consumers can enjoy with peace of mind, as it continues to contribute to their health and well-being.
The impact of this matter on Ajinomoto Co.'s consolidated business results for fiscal 2017 will be immaterial.
Overview of the New Plant
Reference
Press release dated September 29, 2017
“Ajinomoto Group to Restructure Seasonings and Processed Foods Production System in Japan” https://www.ajinomoto.co.jp/company/en/presscenter/press/detail/g2017_09_29.html 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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