By doing so, it plans to strengthen its competitive advantage and further expand demand for its amino acids business, in which the company holds a strong number-one position. Demand is increasing substantially in the feed-use amino acids and umami seasonings markets, and Ajinomoto is pursuing a two-fold business strategy of providing a stable supply to the markets while improving profitability through cost reductions.
In its Medium-to Long-Term Management Plan, Ajinomoto plans to reinforce its strong number-one position and expand its business base with a basic four-part strategy of expanding markets and strengthening its competitive advantage, retail business and research and development. Specific details of the expansion areas are as follows.
Annual production capacity will be increased from 1,MT to 2,MT, with completion of construction scheduled at the beginning of In accordance with this long-term plan, Ajinomoto will successively increase production capacity of Lysine and Threonine at their plants in six countries worldwide as well as at a new production base.
The current increase in production is aimed at further reducing production costs and strengthening the earnings base. Ajinomoto is the leader in the umami seasonings market, which continues to grow strongly. In order to increase its market share, Ajinomoto plans to further enhance production capacity following the above initiatives.
Tryptophan is, in general, the third limiting amino acid for swine after Lysine and Threonine. As with these two feed-use amino acids, using Tryptophan as an additive helps, improve feed efficiency and promote animal growth.
