July 29, 2004 - Tokyo - Ajinomoto Co., Inc. (President: Kunio Egashira; Headquarters: Tokyo, Japan) will expand its businesses in feed-use amino acids and amino acids for pharmaceuticals and foods with a total capital investment of JPY 21.6 billion in Brazil, China and the United States. Ajinomoto will position Brazil in particular, with its wealth of cost-competitive raw materials and highly skilled labor force, as a global supply base, building two new factories there for feed grade Lysine and amino acids for pharmaceuticals and foods, with the aim of further broadening applications for amino acids and expanding the global market.
Investments will be as follows.
1．Feed-use Amino Acids: Further expansion of production bases
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| (1) |
In response to the rapidly growing feed-use Lysine market, Ajinomoto Co., Inc. has decided to build a second feed grade Lysine plant in Brazil, at Ajinomoto Biolatina Industria e Comercio Ltda. The production site of this new plant will be in the city of Pederneiras, in the center of the state of Sao Paulo. The investment amount is BRL 260 million (USD 86 million), and production capacity will be 53,000MT/year. Construction will be completed by September 2006. Ajinomoto Biolatina has been producing feed-grade Lysine in Brazil since 1997 at its Valparaiso plant in Sao Paulo state, and its total production capacity with this new plant will be 125,000MT/year at the end of 2006.
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| (2) |
To meet rapidly growing demand for feed-use Lysine in China, Ajinomoto and China's Sichuan Chuanhua Chemical Group Corp. will increase production capacity of feed grade Lysine at Chuanhua Ajinomoto Co., Ltd. (HQ/Plant; Qingbaijiang, Chengdu, Sichuan Province) in China. The investment amount is RMB 220 million (USD 27 million), and construction will be completed by December 2005. This expansion will increase the total production capacity for feed-grade Lysine at Chuanhua Ajinomoto to 32,000MT/year from the current level of 15,000MT/year.
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| (3) |
To meet rapidly growing demand for feed-use Threonine, Ajinomoto will double the production capacity of feed grade Threonine at one of its subsidiaries, Ajinomoto Heartland LLC (HQ: Chicago, Illinois; Plant Eddyville, Iowa) in the United States. The investment amount is USD 23 million, and construction will be completed by February 2006. This expansion will increase the total production capacity for feed grade Threonine at Ajinomoto Heartland LLC to 20,000MT/year from the current level of 10,000MT/year.
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2．Amino Acids for Pharmaceuticals and Foods: Construction of new production base
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| Ajinomoto is planning to construct a new plant for amino acids for pharmaceuticals and foods at Ajinomoto Interamericana Industria e Comercio Ltda. (Sao Paulo, Brazil) The plant will be one of the largest in the world, with a production capacity of 4,000 tons, and total investment for construction will be BRL 188 million (approximately USD 63 million). Full-scale production is scheduled to begin in the second half of 2005.
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| Ajinomoto will continue to contribute to customers by providing excellent service and a stable supply of high-quality amino acids. |
| About AJINOMOTO GROUP |
Ajinomoto Co., Inc. (Ajinomoto) was established in Japan in 1909. Over the last 90 years, Ajinomoto has grown rapidly through its expertise in fermentation technologies and business & geographical diversification, and is now an established seasoning and process food manufacture, and the world’s leading company of amino acid products, such as sports nutrition, pharmaceuticals, and cosmetics.
The group’s main products include seasonings, edible oils, processed foods, beverages and dairy products. Its fine chemicals business covers pharmaceutical-use and feed-use amino acids, sweeteners, functional nutritional foods, cosmetic ingredients and new drugs for diabetes and cardiovascular diseases.
Today Ajinomoto has expanded its global networks that cover 23 countries and regions. These include 105 manufacturing plants in 15 countries and regions with 58 of these plants in Japan and 47 in the United States, Europe and Asia.
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【Further details of each investment】
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1.Feed-use Amino Acids: Continuously guarantee a stable supply of high-quality feed
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grade amino acid products
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1-1. Second feed grade Lysine plant in Brazil
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| As the number-one supplier in the growing feed-use Lysine market, AJINOMOTO AMINAL NUTRITION is planning to expand the total capacity of its 6 current plants from 270,000MT/year at the end of 2003 to 300,000MT/year by the end of 2005. This new second plant in Brazil is expected to be a future worldwide supply base to areas including China and North America, with a view toward further expanding capacity over the long term.
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1.Profile of Ajinomoto Biolatina Industria e Comercio Ltda. (as of July 1, 2004)
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| ・Name: |
Ajinomoto Biolatina Industria e Comercio Ltda. |
| ・Established: |
June 23, 1975 |
| ・Head office: |
Rua Joaquim Tavora 541, Vila Mariana, 04015-901
Sao Paulo, SP, Brazil |
| ・President: |
Yoshihiko Sakai |
| ・Main product: |
Feed grade Lysine |
| ・Capital: |
BRL 108,839,488 |
| ・Number of employees: |
298 |
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2.Profile of second feed-grade Lysine plant (Pederneiras Plant) of Ajinomoto Biolatina
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Industria e Comercio Ltda. (as of July 1, 2004)
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| ・ Plant address: |
City of Pederneiras, SP, Brazil |
| ・ Start-up of production: |
September, 2006 |
| ・ Production capacity: |
53,000MT/year |
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1-2. Ajinomoto to expand production capacity of feed-grade Lysine in China
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Current demand for feed-use Lysine is estimated to be 700,000MT worldwide and is expected to maintain a growth rate of 7-8% over the coming years.
Especially rapid growth in demand for feed-use Lysine is expected in China. With this expansion, AJINOMOTO ANIMAL NUTRITION will establish a stable supply of feed-use Lysine in China.
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| 1. Profile of Chuanhua Ajinomoto Co., Ltd. (as of July 1, 2004) |
| ・Name: |
Chuanhua Ajinomoto Co., Ltd. |
| ・Established: |
October 17, 1994 |
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(JV: Ajinomoto Co., Inc 70%, China's Sichuan Chuanhua Chemical Group Corp. 30%)
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| ・Head office: |
Qingbaijiang, Chengdu, Sichuan Province 610301, |
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People’s Republic of China |
| ・President |
Hiroki Kawashima |
| ・Main product |
Feed grade Lysine |
| ・Number of employees: |
186 |
2.Profile of the feed grade Lysine plant of Chuanhua Ajinomoto Co., Ltd.
(as of July 1, 2004)
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| ・Plant address: |
Same as above |
| ・Start-up of production: |
May 1996 |
| ・Plant manager: |
Hiroki Kawashima |
| ・Production capacity: |
15,000MT/Year |
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1-3. Ajinomoto to expand production capacity for feed grade Threonine in U.S.
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Current demand for feed-use Threonine is estimated to be 35,000MT worldwide, with an average annual growth rate of 20% over the past 3 years, and projected annual growth of more than 10% in the coming years.
AJINOMOTO ANIMAL NUTRITION also produces feed grade Threonine in the EU at AJINOMOTO EUROLYSINE S.A.S. (HQ: Paris, France), which has a production capacity of 35,000MT/year. Together with this expansion at Ajinomoto Heartland LLC, total production will reach 55,000MT/year. AJINOMOTO ANIMAL NUTRITION will endeavor to further develop the feed-use Threonine market, which is expected to grow rapidly along with the feed-use Lysine market.
In recent years, nitrogen excretion due to animal farming has been a major human health concern because of ammonia and nitrate/nitrite pollution in soil and water, particularly in Europe and North America. In order to solve the problem of nitrogen pollution related to animal feeding, decreasing excessive protein in feed by supplementation with feed-use amino acids is the most effective method because it can significantly reduce nitrogen excretion of animals. In addition to contributing to the environment, feed-use amino acids play an important role in securing protein supply. By lowering protein levels in feed through supplementation with feed-use amino acids, the use of expensive protein sources such as soybean meal can be reduced without affecting animal performance.
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1. Profile of Ajinomoto Heartland LLC (as of July 1, 2004)
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| ・Name: |
Ajinomoto Heartland LLC |
| ・Established: |
October 1, 1984 |
| ・Head office: |
8430 West Bryn Mawr Ave. Suite 650, Chicago, IL 60631-3421 U.S.A |
| ・President: |
Tomokazu Teshima |
| ・Main products: |
Feed grade Lysine, Feed grade Threonine |
| ・Number of employees: |
114 |
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2.Profile of Ajinomoto Heartland LLC, Eddyville Plant (as of July 1, 2004)
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| ・Plant address: |
Heartland Drive, Eddyville, IA 52553, U.S.A |
| ・Start-up of production: |
August 1986 |
| ・Plant manager: |
Dale Rowland |
| ・Production capacity: |
Feed grade Lysine, 50,000 MT/year |
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Feed grade Threonine, 10,000 MT/year |
| ・Number of employees: |
99 |
| 2. Construction of one of world’s largest plants for amino acids for pharmaceuticals and |
| foods in Brazil |
The global demand for pharmaceutical and food-grade amino acids is estimated to be around 17,000MT/year, of which Ajinomoto has a market share of approximately 60%. The company operates production units in Japan, the United States, Belgium, China, and now Brazil. In addition to their conventional use as raw material for infusions and medical foods, pharmaceutical-use amino acids have found new applications in strengthening immune functions, alleviating symptoms of nervous disorders, and further drug discovery research. Over the past several years there has been notable growth in demand of amino acids for applications in beverages and health foods. In order to meet growing worldwide demand for quantity and quality, the company will construct this new plant and introduce the latest technology to assure stable production of a variety of high-quality amino acids.
Reasons for the decision to build the new plant in Brazil include: 1) the Ajinomoto Group already has plants in Brazil producing AJI-NO-MOTO (monosodium glutamate) and feed-grade amino acids, with high-level production technology and highly experienced staff; 2) the proximity to raw sugar derived from sugar cane, the major raw material in fermentation; and 3) the location of the plant in Limeira, adjacent to an existing food products plant, facilitating the use of technologies and resources.
In building the new plant, Ajinomoto will introduce state-of-the-art technology adhering to latest c-GMP (current Good Manufacturing Practice) requirements, in order to meet the advances in various pharmaceutical regulations worldwide. The construction team will consist of an alliance with companies highly skilled in pharmaceutical plant construction and equipment installation, and personnel highly experienced in working with the U.S. Food and Drug Administration. Moreover, the new plant will also conform to ISO9001-2000 and ISO14001.
By establishing a new production base, Ajinomoto aims to further develop its global business as the leading amino acids company, contributing to better health and quality of life for people worldwide by providing high-quality amino acids, related products and services.
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1. Overview of Ajinomoto Interamericana Industria e Comercio Ltda.
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| Established: |
December 1974 |
| Head office: |
Sao Paulo, Brazil |
| President: |
Yoshihiko Sakai |
| Capital: |
BRL 72 million (approximately USD 24 million) |
| Shareholder: |
Ajinomoto Co., Inc. 99.99% |
| Main products: |
Manufacture of seasonings, processed foods, sweeteners, cosmetics, etc., and sale of amino acids and sweeteners |
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2. Overview of Limeira Plant address: Limeira, Sao Paulo, Brazil
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| Start of production: |
second half 2005 (scheduled) |
| Products/production capacity: |
Various number of amino acids production capacity 4,000 tons |
| Capital investment: |
Total construction cost BRL 188 million (approx. USD 63 million) |
| [REFERENCE] |
| 1. AJINOMOTO ANIMAL NUTRITION group |
Ajinomoto’s feed-use amino acid business has production bases at six locations worldwide (in France, Italy, the United States, Thailand, China and Brazil), and conducts its business globally as the AJINOMOTO ANIMAL NUTRITION group.
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The mission of the AJINOMOTO ANIMAL NUTRITION group is, by developing the use of feed-use amino acids, to contribute to the efficient utilization of limited food resources on the earth, to reduce environmental impact, and to help produce healthy, safe and tasty food products. The AJINOMOTO ANIMAL NUTRITION group will continuously guarantee a stable supply of high-quality feed-use amino acid products and offer customer services tailored to each region to support customers worldwide.
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| ・ |
Feed-use Lysine, the first limiting amino acid for swine and the second limiting amino acid for poultry, will enable feed mills to formulate more nutritionally balanced diets, in order to attain better performance of animals with less feeding cost.
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In combination with feed-use Lysine, the first limiting amino acid for swine, the addition of feed-use Threonine, the second limiting amino acid, will enable feed mills to formulate more nutritionally balanced diets, in order to attain better performance of animals with less feeding cost.
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| - AJINOMOTO ANIMAL NUTRITION group - |
| France: |
AJINOMOTO EUROLYSINE S.A.S. |
| Italy: |
AJINOMOTO BIOITALIA S.p.A. |
| U.S.A.: |
Ajinomoto Heartland LLC |
| Thailand: |
Ajinomoto Co., (Thailand) Ltd. |
| China: |
Chuanhua Ajinomoto Co., Ltd. |
| Brazil: |
Ajinomoto Biolatina Industria e Comercio Ltda. |
| 2. Global Development of Amino Acids for Pharmaceuticals and Foods |
The amino acids for pharmaceuticals and foods business operates in Japan, the U.S.A., Belgium, China and Brazil (new plant). This new plant will be its ninth production plant.
The amino acids business of Ajinomoto Co., Inc. conducts its operations under the philosophy of contributing to healthcare, human nutrition and scientific development of all over the world by providing high-quality amino acids and services. As the world’s top manufacturer of amino acids, Ajinomoto uses its technological and stable supply capabilities to manufacture and sell approximately 20 types of amino acids for pharmaceuticals and foods. The company is developing highly productive microorganisms and fermentation processes using its world-class fermentation technology, and promoting its global production and sales network. In addition, the company is conducting a variety of activities to expand the market while supporting customer needs in areas including research into the usefulness of amino acids and development of new materials and applications.
The global market for high-quality amino acids for pharmaceuticals is estimated at 17,000MT/year, and use in beverages and health foods continues to expand rapidly. Ajinomoto holds a share of approximately 60% of this market. The range of applications for amino acids is broad, encompassing the field of clinical nutrition, including infusions and enteral nutrients, raw materials for pharmaceuticals, food products such as supplements and flavorings, cosmetic ingredients and pharmaceutical intermediates. Use in a wide range of industries and global expansion are two major characteristics of the amino acids business.
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- Production Plants in Each Country -
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| Japan: |
Kawasaki Plant, Tokai Plant, Kyushu Plant, Nippon Protein Co., Ltd. |
| U.S.A.: |
Ajinomoto AminoScience LLC |
| China: |
Ajinomoto Lianhua Amino Acid Co., Ltd., Shanghai Ajinomoto Amino Acid Co., Ltd. |
| Belgium: |
S.A. Ajinomoto OmniChem N.V. |
| Brazil: |
Ajinomoto Interamericana Industria e Comercio Ltda. (New Limeira Plant) |
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