Ajinomoto Signs Joint Venture for Indonesian Production Base

Oct 16, 2012 | Contact Author | By: Katie Schaefer
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Title: Ajinomoto Signs Joint Venture for Indonesian Production Base
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Ajinomoto Co., Inc. has signed a joint venture agreement with Indonesian chemical company PT Lautan Luas Tbk (LTL) to establish PT Lautan Ajinomoto Fine Ingredients, a production base for Ajinomoto's amino acid-based cosmetic ingredients in Indonesia. This is the first production base for Ajinomoto outside Japan.

This initiative will expand manufacturing capacity for cosmetic ingredients that use amino acids as raw materials to accommodate future expansion of the personal care market, particularly in Asia. The new company will be established in December 2012, with plans to begin manufacturing cosmetic ingredients in the second half of 2013.

Initial and future investment is slated to total US$ 6 million. Current production bases of Ajinomoto's cosmetic ingredients are in Kawasaki and Tokai; however, the company decided to increase its current cosmetic ingredients supply capabilities about 30% by constructing production bases in Indonesia to accommodate the anticipated growth. According to the company, Indonesia is a promising location as a market and a source of raw materials such as palm oil.

As Ajinomoto Co.'s representative in the cosmetic ingredients business since 1997, joint venture partner LTL has built a relationship of trust with Ajinomoto Co. that spans 15 years. The joint venture will leverage LTL's knowledge of chemical product manufacturing.