CJ CheilJedang and ADM have agreed to establish a new joint venture focused on the production and marketing of fermentation-derived, feed-grade amino acids. The companies said the venture aims to strengthen US production, improve supply-chain resilience and provide customers with a more reliable long-term source of amino acids.
The proposed venture will combine CJ’s fermentation technology and production assets with ADM’s US manufacturing footprint and feedstock supply. It will include CJ’s amino acid facilities in Fort Dodge, Iowa, and Piracicaba, Brazil, as well as ADM’s feed-grade amino acid plant in Decatur, Illinois. CJ will also provide licensed intellectual property related to feed-grade amino acids for use by the joint venture in North and South America.
The companies will give the new business exclusive rights to manufacture and sell feed-grade amino acids across the Americas. CJ will hold the majority ownership, while retaining its intellectual property and fermentation businesses outside the scope of the venture. ADM’s other Decatur operations and global fermentation assets will remain outside the transaction.
“By combining CJ’s industry-leading fermentation technology to produce amino acids for animal nutrition and technical marketing with ADM’s US manufacturing footprint and strong feedstock supply, the joint venture is positioned to seek enhanced cost competitiveness and support stable domestic production for North America,” said Lance Haeryong Choi, Senior Vice President of CJ CheilJedang. “Together, CJ and ADM will help to strengthen global food security and supply chain resilience as well as supporting American communities and manufacturing jobs.”
ADM said challenging global market conditions have put continued US production of feed-grade amino acids, particularly lysine, under pressure. The company also pointed to recent decisions by the US Department of Commerce and US International Trade Commission concerning imports of lysine from China as supporting the case for strengthening domestic production.
CJ BIO already supplies feed-grade amino acids under its Bestamino brand and uses fermentation technology across its animal nutrition business.
The joint venture remains subject to customary closing activities and regulatory approvals.
