CJ CheilJedang (097950.KS) said on the 2nd that its sub-subsidiary CJ Bio America has signed an investment agreement with U.S. grain processor ADM to establish a joint venture for feed amino acids. The company said the venture is aimed at strengthening the competitiveness of its global feed amino acid business and securing a stable supply of raw materials.
CJ Bio America will hold 63% of the joint venture and ADM 37%. CJ CheilJedang will contribute in kind its production facilities in Fort Dodge, Iowa, and Piracicaba, Brazil, along with sales offices in the United States, Mexico and Brazil. ADM will contribute amino acid production facilities and equipment at its plant in Decatur, Illinois, among other key assets.
"Through synergy between CJ CheilJedang's leading technology in feed amino acids and ADM's strengths in raw materials and logistics, the two companies will secure a stable supply of raw materials and strengthen local capacity to supply feed amino acids," a CJ CheilJedang official said.
