admin Ajinomoto (Malaysia) has just acquired a plot of land in the town of Seremban in the south-west state of Negeri Sembilan on which it will build the facility with an investment of around MYR355m (US$84.6m), the company said in a notice to the local stock exchange.
The Malaysian unit of the Japan-based food and ingredients firm added it “plans to strengthen the development and production for halal-compliant products as the recognized and established halal food and seasoning manufacturer”. Ajinomoto hopes the new site will contribute to its “continuing profit growth” and aid future expansion.
It said the new plant would initially be for manufacturing its current range of halal consumer and industrial products, including Umami seasoning Aji-No-Moto, flavor seasonings, menu specific seasonings and products for the industrial food producers.
Ajinomoto said the new plant would also have capacity and space for the manufacture of new products that the company may launch.
“The introduction of advanced technology will enable the company to further improve its overall efficiencies and productivity,” it said.
Construction is expected to begin in October 2019 with completion envisaged by March 2022. The plant will be funded with internal cash and borrowings.
The costs of the new plant will be funded through a combination of internally generated funds and external borrowings.
“The cost of the new plant is not expected to have any effect on the share capital of the company and the shareholding of the shareholders of the company.
“However, it is expected to impact on the earnings of the company in the initial few years of operating at the new plant due to the depreciation of the new assets and repayment of external borrowings,” Ajinomoto said.
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