Starch firm expands in Asia
operations forward in Korea, buying up the remaining slice of its
Korean business from Doosan corporation.
The chunk will go for approximately $65 million (€48 million) in a deal expected to close within the month.
The $2.1 billion starch and sweeteners supplier said the move is an 'acceleration' of Doosan's right to sell its remaining interest to Corn Products, which was exercisable in 2005.
This latest investment in South Korea indicates a further step by Corn Products into growing, developing Asian markets that in 2004 saw the firm make headway into the largest of them all, the Chinese market.
The firm that operates 37 plants in 19 countries linked up with Shandong Juneng Electric Power Group Golden Corn Development company to manufacture modifed corn starch.
"Establishing what we expect will be our initial manufacturing presence in China is aligned with our company's strategy of growing businesses in new, high-growth regions," said Sam Scott, CEO of Corn Products International, announcing the Chinese venture.
Used widely in processed foods such as breakfast cereals, dairy goods, and chewing gum, demand for refined maize products, sweeteners, starch, and oil is intimately linked to the strength of the processed food markets.
And China is drawing in more ingredients players as their international food maker clients move into this fast growing region to gain a slice of the $275 billion currently spent annually on food by the 1.3 billion Chinese consumers.
