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CJ Cheiljedang to spend 900 bln won on new facility, acquisition

All Headlines 17:21 June 12, 2017

SEOUL, June 12 (Yonhap) -- CJ Cheiljedang Corp., South Korea's leading maker of processed foods, said Monday it plans to spend a combined 900 billion won (US$797 million) in building a new plant in the country and taking over a foreign rival, as part of efforts to expand its presence.

The Korean firm said it will invest some 540 billion won into the construction of a processed food production facility in Jincheon, 90 kilometers southeast of Seoul, by 2020, which will play the role of strengthening the company's research and development capability based on cutting-edge technologies.

The company said the construction will begin in August with the plan to begin phased operation in October next year. When the construction is complete, it will be the country's largest processed goods factory, expected to produce some 120,000-ton of products annually, according to the firm.

CJ Cheiljedang is also planning to buy Selecta, a Brazilian company that manufactures soy protein concentrate, for 360 billion won. Selecta is a world-leading manufacturer of sustainable vegetable proteins with its sales reaching some 400 billion won last year. Its 2017 operating income stood at 55 billion won, the Korean firm said.

The massive investment plan came on the heel of group chief Lee Jay-hyun's return to management last month after a four-year hiatus.

The business tycoon served a prison term for embezzlement and tax evasion until he was released in August last year on a special presidential pardon granted by then President Park Geun-hye.

This photo provided by CJ Cheiljedang Corp. on June 12, 2017, shows a production base of Brazilian company Selecta in the northern city of Araguari. The Korean firm said it will purchase the Brazilian company for some 360 billion won (US$318 million). (Yonhap)

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