Japanese food company Ajinomoto and Japanese technology company Nippon Rika through a joint venture has established a company to manufacture Cysteine Hydrochloride, an amino acid that is used for food products and flavorings.
The new food company will commence operations in the second half of 2017.
Although Cysteine extracts are majorly produced in China, according to Ajinomoto, its supply was under threat due to stringent environmental regulations, fluctuations in exchange rates and increasing labor charges.
Ajinomoto expects the joint venture will aid in tapping the increasing demand for Cysteine, reported Foodingredientsfirst.com.
In the recent years, the demand for Cysteine has increased considerably and is mainly used in flavorings.
The company will take leverage of the fermentations technologies of Ajinomoto and the Cysteine production technologies of Nippon Rika.
Nippon Rika is a leading player in Cysteine production and has manufactured Cysteine derivatives primarily for pharmaceutical raw materials since the 1960s.
Last September, Ajinomoto announced that it was 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 would become operational by this year.
Image: Cysteine Hydrochloride is used for food products and flavorings. Photo: Courtesy of rakratchada torsap/FreeDigitalPhotos.net.
