Tokyo, April 21, 2014 - In March 2014, PT Lautan Ajinomoto Fine Ingredients (LAFI), a subsidiary of Ajinomoto Co., Inc. (Ajinomoto Co.), completed construction and began full-scale operation of a plant that produces cosmetic ingredients for personal care product applications, using amino acids as raw materials. A completion ceremony will be held on April 30. The start-up of the new plant will expand the cosmetic ingredient supply capability of the entire Ajinomoto Group to 1.3 times the current level, with the aim of establishing a global supply structure directed toward growing markets, mainly in Asia.


In the personal care products industry, particularly in Europe, there is a trend toward using natural, environmentally conscious, plant-derived raw materials that are gentle on users. As a result, demand has been increasing for cosmetic ingredients from Ajinomoto Co. that use amino acids as raw materials.


The global market for cosmetic ingredients was approximately JPY 35 trillion in 2013, and is forecast to grow by about 5% annually. Markets in Asia and Latin America drive the global market.

In 2020, these two markets are expected to account for around 40% of the global market (2013 Ajinomoto survey).


The Ajinomoto Group currently supplies cosmetic ingredients to more than 3,000 companies in approximately 50 countries worldwide, and about half of its sales are outside Japan. With the start of production at LAFI, the Ajinomoto Group has four production bases for cosmetic ingredients: two in Japan (Kawasaki Plant and Tokai Plant), Limeira Plant in Brazil (which mainly manufactures humectants) and LAFI. Based on this global structure, the Ajinomoto Group will supply cosmetic ingredients to growing markets, mainly in Asia.


Sales of cosmetic ingredients produced by LAFI will be conducted by the Ajinomoto Group except in Indonesia, where sales will be conducted by local joint venture partner PT Lautan Luas Tbk (see below).


The Ajinomoto Group will contribute to the health of its customers' skin and hair with its unique amino acid-based cosmetic ingredients.



For reference


Overview of PT Lautan Ajinomoto Fine Ingredients

(1) Location:

Greenland International Industrial Center, Bekasi Regency, Indonesia

(2) Capital:

USD 3 million (approx. JPY 300 million)

(3) Equity ownership:

Ajinomoto Co., Inc.: 66.67%
PT Lautan Luas Tbk: 33.33%

(4) Established:

February 2013

(5) Start of operation:

March 2014

(6) Representative:

Tatsuya Hattori, President

(7) Employees:

15

(8) Business description:

Manufacture of amino acid-based cosmetic ingredients

(9) Item produced:

Surfactants (Amilite®,Amisoft®)
Amino acid-based surfactants characteristically wash away dirt gently, without depleting moisture from skin and hair, and are widely used in personal care products such as shampoo, body wash and soap.

Overview of PT Lautan Luas Tbk (As of 2012)

(1) Name:

PT Lautan Luas Tbk
http://www.lautan-luas.com/

(2) Location:

Graha Indramas, Jl. AIP II K.S. Tubun Raya No. 77, Jakarta 11410, Indonesia

(3) Established:

1951 (listed on the Indonesia Stock Exchange in 1997)

(4) Capital:

IDR 195 billion (approx. JPY 1.7 billion)

(5) Net sales:

IDR 6,213 billion (approx. JPY 54.1 billion)

(6) Major shareholders:

PT Caturkarsa Megatunggal: approximately 63%
Others: approximately 37%

(7) Business description:

Manufacture and sale of chemical products

(8) Representative:

President Director Indrawan Masrin

(9) Employees:

2,975


About Ajinomoto Co.

Ajinomoto Co. is a global manufacturer of high-quality seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals. For many decades Ajinomoto Co. has contributed to food culture and human health through wide-ranging application of amino acid technologies. Today, the company is becoming increasingly involved with solutions for improved food resources, human health and global sustainability. Founded in 1909 and now operating in 26 countries and regions, Ajinomoto Co. had net sales of JPY 1,172.4 billion (USD 14.1 billion) in fiscal 2012. For more about Ajinomoto Co. (TYO:2802)www.ajinomoto.com.


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