August 29, 2017

CJ takes over Brazilian supplier of raw material used for animal feed

CJ CheilJedang Corp has taken over Brazil's Selecta, a company that supplies raw material for animal feed and which CJ holds a 90% stake in, the Dong-A Ilbo reported.

The move resulted in the formation of the CJ Selecta brand, which was launched in Goiania, Brail, late this month. The launch event was attended by CJ vice president Kim Chul-ha and other top executives.

With sales of about KRW400 billion (US$355 million) and an operating income at KRW55 billion (US$49 million) in 2016, Selecta creates soy protein concentrate, a key component in animal feed, and possesses a sales network reaching 40 countries.   

CJ Selecta's advent strengthens the portfolio CJ CheilJedang, which is known for making both fermented soymeal and soy protein concentrate. The company has plans to produce and supply several kinds of animal feed for poultry, pigs and aquaculture.

In the grand scheme of things, CJ seeks to achieve by 2020 more than KRW800 billion (US$709.3 million) of sales as result of engaging markets in South Korea, Brazil, Vietnam and China.

The company also aspires to raise its share of the global soy concentrate market to 40%.

- The Dong-A Ilbo