4th Nov - Ajinomoto Earmarks Y24bn To Build New Plants In Thailand

-Ajinomoto Co.  will spend around 24 billion yen through 2013 to build new plants in Thailand to help it tap demand in Southeast Asia, India and the Middle East.

Demand for flavor-enhancing seasonings is growing in Asia.

The seasonings firm has earmarked roughly 15 billion yen to construct a new plant for its trademark Aji-No-Moto monosodium glutamate powder in the central Thai province of Ayutthaya. Work will start next month, with production to begin in March 2013. This will be the firm's first Aji-No-Moto plant in Thailand in 15 years.

Able to churn out 60,000 tons a year, the new plant will raise Aji-No-Moto output capacity by 10% when operating at full capacity. Currently, the company produces just over 600,000 tons a year, mostly in Thailand and Brazil. Output will be sold primarily to Southeast Asian nations in the vicinity, as well as to India and the Middle East, where the company's presence has been weak.

Aji-No-Moto is used as a flavor-enhancing seasoning and as an ingredient for adding zest to soup stock. Amid population growth and improving standards of living in Asia, demand for monosodium glutamate is ballooning. Ajinomoto anticipates increased demand from retailers and restaurants.

Also, the company will invest 9.3 billion yen in Thailand to ramp up production of nucleic acids, another ingredient for savory seasonings. Although it makes 10,000 tons a year in Thailand and Japan, production will be boosted to over 15,000 tons by autumn 2013. Seasonings using the additional nucleic acid produced will be sold throughout Asia. Nucleic acid is the key ingredient for Ajinomoto's Hon-Dashi flavor seasoning and its Knorr instant soup.

The 24 billion yen investment in Thailand will be the firm's biggest overseas spending spree. By accelerating its development of Asian markets, Ajinomoto seeks to lift food sales to consumers in the region to 200 billion yen by fiscal 2016, up from last fiscal year's roughly 130 billion yen.