The largest food maker in Korea opened the factory in Fort Dodge, Iowa, on June 25. (image: CJ CheilJedang)
SEOUL, June 27 (Korea Bizwire) – CJ CheilJedang recently celebrated its opening of a new lysine production plant in the U.S. constructed to take the No. 1 position in the global bio-based animal feed market.
The largest food maker in Korea opened the factory in Fort Dodge, Iowa, on June 25. CJ poured US$300 to build the facility to advance into the U.S. lysine market, third largest after Europe and China. In the past, CJ’s presence in the U.S. was weak because it had no production base there. Lysine is an essential amino acid used in making animal feeds.
Especially, as it is considered a strategic location built in cooperation with Cargill, the world’s largest trader of agricultural commodities, which will provide the plant with starch sweetener, a key ingredient of lysine, CJ set the high mark in the factory.
Sohn Kyung-sik, chairman of CJ Group, said in his congratulatory speech, “Starting with the Indonesian factory with an annual capacity of 10,000 tons in 1991, our lysine business has made a leap to become a global leader by completing the Iowa factory producing 100,000 tons annually.”
Through the completion of the lysine factory, CJ will try to raise its share in the market currently dominated by Archer Daniels Midland (the U.S.), Ajinomoto (Japan) and Evonik (Germany). By overcoming its weakness of no production base, it aims to achieve the biggest market share by concentrating in the U.S. market. Last year, the three top lysine sellers accounted for more than 80 percent of U.S. market share.
The lysine market in North America ranks third with 450,000 tons, following China’s 700,000 tons and Europe’s 600,000 tons. Currently, CJ ranks first in the European market and second after China’s Global BioChem Technology in the Chinese market, which show a rising demand of lysine thanks to the explosive meat consumption by its 1.3 billion people.
As the North American market is one of the largest in the world, CJ plans to occupy the market through offensive sales and marketing activities in order to take the No. 1 title in the global bio feed market.
Written by John Choi (johnchoi@koreabizwire.com)
Business (Follow us @Biznews_Korea)
