Ajinomoto Invests $20m in US Frozen Food Plant
25 Sep 2015 --- Ajinomoto Co is reinforcing its business infrastructure for frozen rice products to expand its frozen foods business in North America. The company will build a new production line for frozen rice products at the Oakland Plant of Ajinomoto Windsor, Inc to expand production capacity and create an efficient supply system throughout North America. Through this measure, Ajinomoto Co. will increase sales of high-quality, specialty frozen rice products and accelerate the expansion of its frozen foods business in North America. Investment will total approximately USD 20 million (approximately JPY 2.4 billion), and the full-scale operations will begin in September 2016.
Asian/Ethnic frozen rice products flavored with chunks of meat and vegetables are popular in North America, and AWI holds the top share of this market at 47%. Its Portland Plant, which has an integrated production line from rice cooking to flavoring and packaging, currently produces high-quality frozen rice products supported by the combined production technology of Ajinomoto Frozen Foods Co., Inc. and product development technology of AWI.
AWI will invest approximately $20m to build a new integrated production line for high-quality frozen rice products at its Oakland Plant in the eastern United States. Together with the existing Portland Plant in the western United States, this new line will expand production capacity by 1.5 times. Like the Portland Plant, the Oakland Plant is a USDA-inspected meat processing plant3 that can produce high-quality, specialty frozen rice products. By efficiently supplying products throughout North America from two production bases, one each in the east and the west, Ajinomoto Co. intends to increase sales of Asian/Ethnic frozen food products through the powerful sales network of AWI, which covers all of North America, and rapidly expand its entire frozen foods business.
In the Ajinomoto Group’s FY2014-2016 Medium-Term Management Plan, North America is positioned as a priority area where it aims to develop product quality and establish a sales network centered on the frozen foods business. In the massive North American frozen foods market, Ajinomoto Co. will develop the Asian/Ethnic food category of the frozen foods market ahead of other companies to establish the clear No. 1 position and promote the penetration of the Ajinomoto Brand.