Aggressive Management: CJ Starts Aggressive Management after Chairman Lee’s Return | BusinessKorea

Saturday, July 22, 2017

Lee Jae-hyun, chairman of the Cj Group.
Lee Jae-hyun, chairman of the Cj Group.
SEOUL,KOREA
14 July 2017 - 12:00pm
Michael Herh

CJ Group will make the biggest investment ever -- five trillion won this year and 36 trillion won (US$32 billion) by 2020. The group aims to post 40 trillion won (US$36 billion) in sales, a 9-trillion won (US$8 billion) increase from the previous year. Beyond “Great C”' in 2020, the group came up with a new vision of “World Best CJ” in 2030.

Chairman Lee Jae-hyun attended the opening ceremony for CJ Blossom Park, an integrated R&D institute built in Gwanggyo, Suwon of Gyeonggi Province on May 17. That was chairman Lee’s participation in an official event in four years. "In 2030, we will realize World Best CJ, which will be the world's best in three or more business sectors, ultimately becoming the world's best in all business sectors,” chairman Lee said in the ceremony.

"Achieving World Best CJ is a historic mission and responsibility that CJ must fulfill. This mandate will be a way to contributing to the growth of the national economy through business activities," he said. “Let’s make CJ loved by the people, recognized by people around the world."

CJ CheilJedang announced on June 12 that the company will invest 900 billion won (US$810 million) to expand its core business such as food and materials at home and abroad and scale up its competitiveness. The company will build a world-class integrated food production base with cutting-edge technology by investing 540 billion won (US$486 million) in Jincheon, North Chungcheong Province by 2020. After completion, its annual production volume is expected to reach 500 billion won (US$450 million). Ground will be broken in August this year. The base will begin to operate on a full scale in October of next year. The plant will be built on land of at about 100,000 square meters in the Songdu Industrial Complex in Jincheon and will have a capacity to produce up to 120,000 tons per year. The base will be the largest processed food factory in Korea.

We will also actively pursue global M&As following domestic investment. CJ Cheiljedang will buy Selecta, a vegetable high protein material company in Brazil for 360 billion won (US$324 million). Selecta is a global leader in production of soy protein concentrate (SPC) with annual sales of 400 billion won (US$360 million) and operating profit of 55 billion won (US$49 million). Selecta has a global network covering 37 countries. As Selecta is located in the main producing region of soybean which is the main ingredient, the company has strong competitiveness in logistics.

CJ Korea Express is accelerating its expansion into the global market by acquiring Darcl Logistics, the third largest logistics company in India, and Ibrakom, the largest logistics company in the Middle East earlier in April. For five years since 2013, the company has been actively expanding its global business, including cutting three M&A deals and establishing five joint ventures.

In addition, CJ Group is planning to invest US$1.05 billion in food, bio, logistics, and contents for the next five years in the United States. CJ CheilJedang will expand its food and bio production facilities and expand publicity activities for Korean food brand Bibigo. CJ E&M will increase investment in contents such as movies. Affiliates such as CJ Korea Express and CJ CGV will also actively pursue M&As abroad.

"The global expansion of core business such as food/biotech, logistics and culture is essential to achieving Great CJ in 2020 and World Best CJ in 2030," a CJ Group official said. “We expect that we will see our M&A deals steadily pay off in our major business divisions after we put an end to years of slumps based on strong owner leadership."

Meanwhile, in May, CJ Group made news by announcing an epoch-making plan for corporate culture innovation for work-life balance and the creation of a flexible working environment shortly after chairman Lee’s return to management.

 

 

 

 

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