CJ Cheiljedang Corp., South Korea’s leading processed food maker, said Wednesday its dumpling factory in Russia has begun full-fledged operations after going through some stabilization work as the firm moves to expand its presence in the European market. (Image: CJ Cheiljedang)
SEOUL, April 18 (Korea Bizwire) — CJ Cheiljedang Corp., South Korea’s leading processed food maker, said Wednesday its dumpling factory in Russia has begun full-fledged operations after going through some stabilization work as the firm moves to expand its presence in the European market.
The company recently completed upgrading the facilities in St. Petersburg after wholly acquiring a local frozen food company in a 30 billion-won (US$28 million) deal last year.
The factory under the new subsidiary, CJ Raviollo Rus, began producing CJ Cheiljedang’s flagship frozen dumplings Bibigo, according to the key affiliate of South Korea’s food and entertainment giant CJ Group.
CJ Cheiljedang said it will continue to invest to improve local facilities and secure human resources to achieve 50 billion won in sales from its Russian unit in 2018 and raise the figure to 130 billion won in the next three years.
CJ’s takeover of the Russian firm came as the company has been bolstering offshore investment with its instant food business following the success of Bibigo.
CJ Cheiljedang said Russia’s geographical advantage will enable the company to tap deeper into the broader European market.
The food manufacturer is forecasting sales of its Bibigo dumplings to reach 1 trillion won by 2020, with a plan to generate some 70 percent of its revenue from abroad.
(Yonhap)
