CJ CheilJedang Bio Proves to Be a Cash Cow... Sales Soar to 3 Trillion Won

Operating Profit Margin 10.5% Highest in 8 Years
World No.1 in 5 Items Including Tryptophan
Focus on Eco-friendly 'White Bio'
Main Product PHA Biodegradable Plastic

[Asia Economy Reporter Lim Hye-seon] CJ CheilJedang's bio business has entered the era of annual sales exceeding 3 trillion won.

Bio Business Sales Reach 3 Trillion Won

According to CJ CheilJedang on the 9th, sales in the bio business division increased by 7.9% year-on-year to 2.9817 trillion won. Operating profit recorded 312.2 billion won, a 34.2% increase. In particular, the operating profit margin rose to 10.5%, the highest in 8 years, compared to 7.1% in 2018 and 8.4% in 2019.

A CJ CheilJedang official explained, "Prices of feed additives such as tryptophan and valine have risen, and demand for food additives such as arginine has rebounded." The sales proportion of high-profit products such as tryptophan, nucleic acid, valine, and arginine expanded from 29% in Q4 2019 to 32% in Q4 last year.

CJ CheilJedang is focusing on ‘Green Bio,’ centered on food and agricultural additives. Since entering the amino acid and food seasoning material market in the 1960s, it now has production bases in China, Brazil, the United States, Malaysia, and other countries, producing nine essential amino acids using eco-friendly processes. CJ CheilJedang ranks first in the world in five items including lysine, tryptophan, nucleic acid, and valine, surpassing global companies such as Evonik (Germany) and Ajinomoto (Japan). The global market shares of tryptophan and valine reach 60% and 75%, respectively. More than 95% of sales are generated overseas.

Eco-friendly Next-generation Food

CJ CheilJedang has identified the eco-friendly ‘White Bio’ business as the next-generation food. It is targeting the biodegradable plastics market, which is expected to grow to over 3 trillion won within five years. Biodegradable plastics are increasingly used in recycled vinyl, straws, PET bottles, packaging materials, and textiles, indicating high growth potential.

CJ CheilJedang has chosen PHA (Polyhydroxyalkanoate) as its main product. PHA is a 100% marine biodegradable eco-friendly plastic material. To establish an annual production system of 5,000 tons of PHA this year, CJ CheilJedang has newly installed a dedicated PHA production line at its bio factory in Pasuruan, Indonesia. Even before full-scale production, leading global companies in Europe and elsewhere have placed pre-orders exceeding 5,000 tons, surpassing initial mass production volumes. A CJ CheilJedang official said, "We will continue research and development centered on our bio research institute, which possesses world-class capabilities, and actively seek collaboration with innovative overseas companies."

This content was produced with the assistance of AI translation services.