August 10, 2017
Meihua to make amino acids for Ajinomoto Animal Nutrition Group
Ajinomoto Co. Inc. has announced an agreement with Meihua Holdings Group Co. Ltd. in which its subsidiary, Ajinomoto Animal Nutrition Group Inc. (AANG) will sell lysine and threonine made by Chinese manufacturer Meihua Holdings Group Co. Ltd.
The products - which are purposed for animal feed use - will be sold worldwide from fiscal 2018 onwards. Meihua is reported to be the second company functioning as AANG's manufacturing subcontractor for feed-use amino acids. With the recent agreement, Ajinomoto would reestablish its global supply system for amino acid, the linchpin of its animal nutrition business.
The deal is a response to strong demand for amino acids which is prompted by rising feed productions as meat consumption in the world increases. These developments motivated AANG to ensure the various needs of the market and its customers are met by securing a steady supply of amino acids.
In addition, a fiscal 2017-19 medium-term management plan will see Ajinomoto bolster its business portfolio with specialties in its AminoScience business. The company will also expedite its shift to specialty in the animal nutrition business by implementing structural reforms, including the utilisation of external resources.