South Korea's largest food company CJ Cheiljedang Corp. plans to enter China's frozen dumpling market in a bid to expand its presence in the world's most populous market, company officials said Monday.
CJ DCH Guangdong Frozen Food Co., a joint venture between CJ Cheiljedang and Hong Kong-based Dah Chong Hong Ltd., held a groundbreaking ceremony last Friday to build a factory in the southern Chinese province of Guangdong, they said.
CJ and Dah Chong Hong formed the venture in March this year, which is based in Xinhui, a district situated in the Guangdong Economic Development Zone.
CJ invested 35 million yuan (US$5.48 million) in the joint venture, while DCH invested 23 million yuan.
The construction of the new plant is expected to be completed by early 2012 and to produce 4,000 tons of frozen dumplings next year.
Dah Chong Hong will be the distributor of the frozen and processed food for regions such as Hong Kong, Macao, Guangzhou, Shanghai, Zhejiang and Fujian.
The joint venture may seek an initial public offering in China depending on its business performance, a CJ official said.
Since entering China via Qingdao in 1995, CJ has been expanding its key businesses ranging from food, bio-pharmaceuticals to home shopping and logistics.