CJ CheilJedang Pursues Spin-Off and Sale of Starch Sugar Division... "Considering Various Options"

Recent Business Structure Overhaul
Plan to Divest Segments with Low Growth and Profitability
"Nothing Has Been Finalized Yet"

CJ CheilJedang is moving to sell its starch sugar business division.

CJ CheilJedang CI.

According to industry sources on July 28, CJ CheilJedang is sounding out major financial investors (FIs) on the potential spin-off and sale of its starch sugar business division. The starch sugar division produces syrup, glucose, and fructose using corn starch as the main ingredient, and these products are used as sweeteners in processed foods such as beverages. The potential spin-off and sale aligns with CJ CheilJedang's recent initiative to restructure its business portfolio and divest segments with low growth and profitability.

Previously, on July 1, CJ CheilJedang undertook a business unit rebalancing to proactively respond to the rapidly changing management environment and future uncertainties. As part of this, the company reorganized its business structure, which had been divided into "Food" and "Bio," into three new categories: "Lifestyle Food," "Tech Ingredients," and "Key Ingredients." In addition, the company announced its intention to decisively exit underperforming businesses with low growth and profitability. The starch sugar division is included in the Key Ingredients segment.

CJ CheilJedang Center

The domestic starch sugar market is currently dominated by four companies—CJ CheilJedang, Daesang, Sajo CPK, and Samyang Corporation—which together hold over 90% market share. Among these, CJ CheilJedang ranks fourth in the industry.

A CJ CheilJedang representative stated, "As part of our innovation for the future, we are boldly considering various options to exit businesses with low growth and profitability, but nothing has been finalized yet."

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