Reinforcement of Production Facilities for Feed grade Lysine in the United States, Italy and Thailand

Aiming to become a global corporation in food and amino acid products from its origins in Japan, Ajinomoto Co., Inc. is developing its businesses globally. One such business is feed-use amino acids, in which Ajinomoto is a leading global company, with six production bases worldwide. Ajinomoto is expanding its production facilities for feed grade Lysine in the United States, Italy and Thailand to provide a stable supply in the markets of North America, Europe and Asia/Oceania, where demand is expected to continue to grow. The increased production is in response to rapid growth in demand, and is part of Ajinomoto’s plans to raise its annual production capacity for feed grade Lysine from the current level of 200,000 tons to 300,000 tons by 2005. In the United States, annual production capacity at Ajinomoto Heartland, Inc. (Head office: Chicago, Illinois; Plant: Eddyville, Iowa) will be increased from the current 40,000 tons to 50,000 tons. Capital expenditures are expected to total US$11 million (approximately JPY1.3 billion, at an exchange rate of US$1 = JPY 120), with construction scheduled for completion in July 2002. In Italy, annual production capacity at AJINOMOTO BIOITALIA S.p.A. (Head office and plant: Bottrighe, Rovigo) will be increased from the current 20,000 tons to 30,000 tons. Capital expenditures are expected to total 6 million Euros (approximately JPY600 million, at an exchange rate of 1 Euro = JPY 100), with construction scheduled for completion in January 2003. In Thailand, annual production capacity at Ajinomoto Co., (Thailand) Ltd. (Head office: Bangkok; Factory: Pathum Thani) will be increased from the current 30,000 tons to 50,000 tons. Capital expenditures are expected to total 1.3 billion Baht (approximately JPY3.5 billion, at an exchange rate of 1 Baht = JPY 2.7), with construction scheduled for completion in early 2003. Feed-use Lysine is a core product of the feed-use amino acid business, and Ajinomoto holds a share of about 35% of the approximately 600,000 ton global market. With 7 to 8 percent annual growth anticipated, this promising market is expected to increase to about 800,000 tons by 2005. Ajinomoto has six global production and sales bases in France, Italy, the United States, Thailand, China and Brazil. By taking advantage of the global network of the AJINOMOTO ANIMAL NUTRITION group, the Company will provide a stable supply of high-quality feed grade amino acids and offer customer services tailored to each region. Reference Materials