Japanese food maker Ajinomoto is to invest JPY900m (US$94.75bn) in the construction of a seasoning plant in Indonesia to meet growing demand for overseas food products.
Ajinomoto said its subsidiary P.T. Ajinomoto Indonesia is building the plant at its existing facility in Karawang in West Java. The firm said it aims to double production capacity at the site in response to what it claims is an “ongoing rapid growth” of the liquid seasoning market in Indonesia.
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Construction began in February and operations are expected to start in June 2014. The facility will produce products such as seasonings, spices and other ingredients such as soy sauce.
The site already manufactures Masako seasonings and is also positioned as a supply base for western Indonesia, in addition to countries in the Middle East and North Africa.
Production of the firm’s Saori brand is handled by contract manufacturers in Indonesia and its Mojokerto factory in East Java. Ajinomoto said the new facility will allow it to consolidate outsourced and Mojokerto production in order to build an “efficient” production system for “stable supply”.
“Ajinomoto Co.’s overseas liquid seasonings business is still a small part of its overseas consumer foods sales of JPY183.5bn,” the company said. “However, the market itself is extremely large and is expected to expand further in the future as demand for convenience rises in tandem with economic growth.
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By GlobalData“Strengthening and growing the overseas consumer foods business is one of the key principles of the 2011-2013 medium-term management plan aimed at making Ajinomoto Co. a genuine global company. This expansion of production facilities will support further growth of Ajinomoto Co.’s business in Indonesia.”
