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(2nd LD) CJ Cheiljedang to spend 900 bln won on new facility, acquisition

All Headlines 19:15 June 12, 2017

(ATTN: CORRECTS typo in lead)

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) on building a new production complex in the country and taking over a foreign rival as part of efforts to expand its market presence.

The Korean firm said it will invest some 540 billion won into the construction of new facilities in Jincheon, 90 kilometers southeast of Seoul, by 2020, which will also play the role of strengthening the company's research and development capabilities.

Construction is scheduled to begin in August with the goal to partially launch operations in October next year. When the construction is complete in 2020, it will be the country's largest processed goods factory with an annual production capacity estimated at 120,000 tons of foodstuffs, the company said.

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 2016 operating income stood at 55 billion won, the Korean firm said.

The massive investment plan came on the heels of group chief Lee Jay-hyun personally taking charge of management last month after a four-year hiatus.

The business tycoon served a prison term for embezzlement and tax evasion and 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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