CJ buys Chinese amino acid makerFood maker CJ CheilJedang agreed to acquire Ningbo Zhenhai Haide Biochem, a Chinese manufacturer of amino acids, in a push to expand its bio business in the global market, the company said on Monday.
The food unit under CJ Group will acquire a 100 percent stake of the Chinese company for 36 billion won ($31 million).
With the takeover, CJ CheilJedang will increase its amino acid products portfolio to over 40, which will include functional amino acids and amino acid derivatives, according to a statement released by the food maker.
Functional amino acids are used in a wide range of products including food, cosmetics, fertilizers and health supplements.
CJ CheilJedang is also expected to use Haide’s expertise in refining technology in conjunction with CJ’s strength in fermentation technology.
Built in 1986, Haide has two production lines in the Zhejiang province of China, with some 300 distribution channels across the country.
“With the acquisition of Haide, we will continue our efforts to become a global player in the functional amino acid market,” said Noh Hang-deok, vice president at CJ CheilJedang.
The move is in line with CJ Group’s emphasis on targeting the global market this year.
CJ Group said earlier this year that it will focus on mergers and acquisitions as part of plans for global expansion, following a prolonged leadership vacuum that has halted major investment in recent years.
BY PARK EUN-JEE [firstname.lastname@example.org]