September 26, 2011

CheilJedang to establish feed factory in China

CJ CheilJedang Corp., South Korea's largest food producer, said Friday (Sep 23) it will construct a new Chinese feed factory in order to enhance its presence in China.

The food arm of South Korea's food and entertainment giant CJ Group said the feed factory to be built in Liaocheng city in Shandong province will be the company's ninth feed-manufacturing plant in China.

The plant will have a production capacity of 150,000 tonnes of feed after construction is completed early next year, it said.

CJ CheilJedang Chief Executive Kim Chul-ha signed the memorandum of understanding with the city officials Thursday (Sep 22), according to the company

The company, which currently runs a total of 17 production facilities in Southeast Asia, aims to push up revenues from its feed business to KRW1 trillion (US$877.5 million) in 2012.

The company, meanwhile, saw its second-quarter earnings plunge 73.4% on year as of end-June, mainly due to spikes in the global prices of sugar and wheat.