CJ Corp. (CEO, Ju Hyung KIM) announced that 14.5 billion won will be invested in China Shandong Liaocheng to establish a nucleic acid production facility that will produce an annual production of 3,000 tons.
This is the second nucleic acid related overseas investment for CJ, the first being in Indonesia in 1999 in pursuit of globalization of nucleic acid, it was the first case in the industry. CJ stated that this direct investment will allow for higher price competitiveness then the present exports. CJ also stated that it expects through this investment in China, will bring about a global production of nucleic acid, finalization of sales distribution and widen the market gap between CJ and late-entry competitors.Presently there are only five companies in the world that possess the nucleic acid ferment technology Dae Sang, Japan’s Ajinomoto and Dakeda- Kirin, China’s Sung Ho(星湖) and CJ, the number one in the global nucleic acid market with about 40% of market share. CJ’s China production will start for the first time to produce nucleic acid around January, 2007 and most the production is expected to be sold in the Chinese markets.