FUJI OIL CO., LTD. | News Release

2001 01.18

Fuji Oil discontinues soybean crushing in Japan

In September this year Fuji Oil will discontinue its soybean crushing in Kobe Japan. This is a part of the structual reforms Fuji Oil has been driving. Defatted soybean, raw material of soy protein will be imported from the USA and China.

Fuji Oil started crushing soybean at Kobe in 1955. Faced with the need to re-innovate the facility, Fuji Oil decided not to continue the operation at the same site but to import the raw material from overseas. The decision was made from the econimic viewpoint because the new investment would reduce the cost competitiveness of the soy products.

Defatted soybean will be produced from IP handled soybean in the USA and transported to Japan.

Outline of Fuji Oil's soy protein business
Recently the interest and demand for soy protein is growing rapidly due to increase of aged population and their health concern, many research reports on health benifits of soy protein and thanks to FDA's approval of health claims against heart disease.
To meet the inceasing demand, Fuji Oil's soy protein business has six devisions.

1)	Soy protein division Fuji Oil has the largest market share of isolated soy protein and textured soy protein in Japan. Plant locations:Hannan facility, Sakai factory, Jilin ( China )

2)	Processed soy protein foods division Fried foods for instant noodles, ganmo, frozen tofu and soy meatloaf for industrial use. Plants and subsidiaries:Hannan facility, Kobe factory, Ishikawa factory, Fuji Fresh Foods, Tsukuba factory (operation starts in July 2001), Shandong (China)

3)	New Material division Water soluble soy polysaccharides "Soya Fibe''

4)	Soymilk division Supplying raw material to Toraku and food service to bakery and cake shops

5)	"Soya Farm'' division Retail sales through co-ops and grocery chains

6)	Functional foods division "Isofla-10'', "Choleste-10'' and "Hizakoshi-Rakuho''