Ajinomoto is to invest approximately JPY 900 million (€7.5 million) to construct a new factory dedicated to SAORI liquid seasoning in the food products factory at the Karawang Industrial Estate, West Java, Indonesia (Karawang Factory). This will, said the company, double current production capacity and respond to the ongoing rapid growth of the liquid seasoning market in Indonesia. The start of construction was in February 2013, with operations to start in June 2014.
Currently, SAORI production is handled at both contract manufacturers in Indonesia and the Mojokerto Factory in East Java. Construction of the new factory will allow consolidation of outsourced manufacturing and production at the Mojokerto Factory into the Karawang Factory to build an efficient production system for stable supply, said the company.
The Karawang Factory is already home to the production of Masako flavour seasoning.
According to Ajinomoto, Indonesia’s economy is expanding steadily because of its growing population (approximately 240 million in 2012 according to IMF estimates) and expanding domestic demand. Further growth is expected. The company has been doing business in Indonesia for more than 40 years since it began producing and selling seasonings and other products in 1969.
The Indonesian liquid seasoning market is said to be growing rapidly as a result of improved living standards due to economic development. It is estimated to be approximately 250 thousand to 300 thousand tons annually, with a growth rate of about 10 percent per year. In this market, Ajinomoto SAORI serves the oyster sauce and teriyaki sauce categories, which have an estimated market share of approximately 10,000 tons annually and a growth rate of about 20 percent per year.
