Ajinomoto Co to build plant to manufacture soups on Kawasaki premises | FNB News - fnbnews.com

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 (Suzuki-cho, Kawasaki), in accordance with the details announced in its press release, entitled Ajinomoto Group to Restructure Seasonings and Processed Foods Production System in Japan.

The company 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.

Ajinomoto Co is working toward the formation of a new company in accordance with the details announced in press release entitled Ajinomoto Group to Form Ajinomoto Food Manufacturing Co, Ltd, a New Company in Charge of Manufacturing and Packaging of Seasonings and Processed Foods in Japan, in April 2019.

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 twice the current levels) through the use of information and communications technologies (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 earnings before interest, taxes, depreciation and amortisation (EBITDA) by approximately JPY 7 billion annually and raising the business profit margin of the businesses involved by approximately two per cent 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.

Overview of the new plant
Location: 1-1 Suzuki-cho, Kawasaki-ku, Kawasak, Japan
Floor area: 30,000sq m (steel-frame, six-storey building)
Total investment: Approximately JPY 20 billion (building, manufacturing and packaging facilities, etc.)
Business description: Manufacture and packaging of soups and other products
Start of construction: December 2018 (scheduled)
Completion: First half of fiscal 2021 (scheduled)

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