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Ajinomoto forges joint venture for cosmetics ingredients in Indonesia

By Simon Pitman , 18-Oct-2012

Japanese ingredients player Ajinomoto has announced a joint venture with Indonesia-based chemical company PT Lauatan which will produce a range of amino acids produced for personal care products.

The initiative, which will take a total investment of $6m to get up and running, aims to expand the company’s overall production capacity for this ingredients area as raw materials to meet the rising demand for products such as shampoo and body care on a global basis, but particularly in Asia.

The new business, known as PT Lautan Ajinomoto Fine Ingredients will be established over the course of the next few months, with a view to beginning the manufacturing of cosmetic ingredients in the second half of the year.

Expanding beyond its mainstay food business

The company is expected to be legally established in December of this year, with an initial investment of $3m, Ajinomoto will hold a 66.7 percent share, against a 33.33 percent share held by PT Lautan Luas.

The facility will be located at Greenland International Industrial Center, Bekasi Regency, in Java and will be headed up by Tatsuya Hattori, who will initially oversee a team of 15 employees.

 After a further $3m investment, the project will assume production to become a part of the company’s ambition to increase its footprint in the global cosmetic ingredients industry, expanding on its mainstay business serving the food industry.

Cosmetics business has expanded on demand for amino acids

Ajinomoto began producing cosmetic ingredients in 1997 and currently claims to supply 3,000 cosmetic ingredients in approximately 50 different countries worldwide.

In particular the company says that it has grown its cosmetic business on the back of demand for cosmetics that use amino acids as a raw material, which is said to be a growth area as the naturally derived ingredient fits in well with demand for natural cosmetic products, particularly in Europe.

The company says that currently production of amino acids for cosmetics is centered around its Kawasaki and Tokai Plants in Japan, but assuming production at the Indonesian plant will help increase capacity by around 30 percent, while also being closer to potential business in the fast growing South Asian market.

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