Trade Resources Company News Ajinomoto Invests $20m on New Production Line at Oakland Facility

Ajinomoto Invests $20m on New Production Line at Oakland Facility

Ajinomoto is investing JPY2.4bn ($20m) on a new production line for frozen rice products at the Oakland facility in the US, as part of its aim to boost production capacity.

This line will become operational by 2016.

The North American frozen foods market is pegged at around $40bn and the market for frozen rice products under the Asian/Ethnic food category is estimated to be $120m, with growth of this segment expected to be in double digits, reported Foodingredientsfirst.com.

The firm's frozen foods unit began operations in North America in 2000.

The investment is being used for building a new integrated production line at its Oakland facility in the eastern US. The Oakland facility along with the existing Portland facility in the western US will boost the company's production capacity by 1.5 times.

Both the Portland and Oakland facilities are a USDA-inspected and are claimed to produce quality, specialty frozen rice products.

The company intends to bolster the supply of frozen rice products across North America from two production facilities - one in the east and the other in the west.

The two facilities are owned by Ajinomoto Windsor, which was formed following Ajinomoto's acquisition of frozen food manfacturer Windsor Quality Holdings, through a subsidiary in 2014.

Recently, Dutch company HYET Holding B.V announced that it was acquiring Ajinomoto's European subsidiary, Ajinomoto Sweeteners Europe (ASE), for an undisclosed amount as part of its international expansion plan.

Both the parties signed a shared agreement for 100% of ASE shares to be transferred from Ajinomoto to HYET Holding.

Source: http://www.food-business-review.com/news/ajinomoto-invests-20m-on-new-production-line-at-oakland-facility-280915-4680145
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