From Crop to Consumption

Ajinomoto Group to build a new plant for soups and other products at its Kawasaki office

Ajinomoto Co., Inc. has decided to build a new plant for manufacturing and packaging soups and other products on the premises of its Kawasaki Administration and Coordination Office.

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 strategy, it is consolidating and restructuring the production system of its Japan Food Products business with the formation of a new company and a total capital investment of approximately JPY 40 billion. At present, Ajinomoto Co. is building a new plant on the premises of its Tokai Plant that will conduct integrated manufacturing and packaging of seasonings and other products and has begun consolidating the functions of the Kansai Plant of AJINOMOTO PACKAGING INC. there.

As part of these initiatives, Ajinomoto Co. will make a capital investment of approximately JPY 20 billion to build a new plant on the premises of its Kawasaki Administration and Coordination Office for soup and other products and will transfer the Kawasaki Plant of Knorr Foods Co., Ltd. (Takatsu-ku, Kawasaki) there as initially planned. By doing so, Ajinomoto Co. will achieve flexible production capabilities and high productivity (about double current levels) through the use of ICT, automation and other leading-edge technologies. The aim is to realise a world-class level of production that meets customer demand flexibly and quickly. Ajinomoto Co. is also aiming for further growth in the soup business and will increase production to accommodate this growth. Ajinomoto Co. intends to continue developing the business by delivering nutritionally balanced, premium and other products that meet diversifying customer needs.

As a result of this consolidation and reorganisation and the concurrent increase in production, Ajinomoto Co. intends to enhance its business structure through improving EBITDA by approximately JPY 7.0 billion annually and raising the business profit margin of the businesses involved by approximately 2% from fiscal 2022 onward, in line with its initial plan.

To realise its corporate message, “Eat Well, Live Well,” the Ajinomoto Group is restructuring its value chain to steadily deliver products that customers can enjoy with peace of mind, as it continues to contribute to their health and well-being.

The impact of the restructuring described in this news release on Ajinomoto Co.’s consolidated business results for fiscal 2018 will be immaterial.