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CJ CheilJedang to invest $50 million to beef up animal feed material capacity in U.S.

2018.01.10 13:25:01 | 2018.01.10 16:34:59
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CJ CheilJedang Wednesday announced it has decided to invest a total of $50 million to build a production line for threonine, an essential amino acid for animal feeds, at its factory in Iowa.

Construction will begin in the second quarter with a goal to produce 20,000 tons of threonine from mid-2019.

Shares of CJ CheilJedang Wednesday ended 0.92 percent up at 385,000 won from the previous session.

In 2014, CJ CheilJedang built the factory to produce 100,000 tons of lysine, another essential amino acid used in making animal feeds, for US sales.

North America accounts for about 20 percent in the $1 billion global threonine market. It is the world`s third-largest after Europe and China.

The U.S. threonine market is dominated by Japan`s Ajinomoto Corp., U.S.-based Archer Daniels Midland (ADM) and China’s Fufeng.

CJ CheilJedang said it will make aggressive efforts to raise its share in the U.S. market to up to 20 percent in 2021, going head to head against Ajinomoto, the current market leader.

A company official said CJ CheilJedang is strengthening its threonine business with a bold short-term goal to become a dominant global player in the market of amino-acid animal feed supplements.

By Kim Byung-ho and Minu Kim

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

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