CJ, ADM to form new jv to strengthen amino acid production and supply chains

“This joint venture will strengthen US production, creating a more reliable US source of supply by bringing together the right assets, products and capabilities to support continued production in a highly competitive environment. Recent decisions by the US Department of Commerce and US International Trade Commission to eliminate unfair trade practices affecting US imports of lysine by China give us even greater confidence that this is the right step. ADM will continue to use its global fermentation capacity and expertise to meet customer needs and as a platform for growth as we explore new ways to serve food, feed and industrial markets through precision fermentation.”

The new joint venture will develop, manufacture and market fermentation-derived amino acids by bringing together:

• ✅ CJ’s fermentation production facilities in Fort Dodge, Iowa, and Piracicaba, Brazil.
• ✅ ADM’s Decatur, Illinois, feed-grade amino acid plant.
• ✅ CJ’s Mexico, Brazil and US sales offices.
• ✅ Via license, CJ’s intellectual property related to feed-grade amino acids for use by the joint venture within North and South America.

CJ and ADM will give the joint venture exclusive rights to manufacture and sell feed-grade amino acids in the Americas.

CJ will be the majority owner of the joint venture. CJ will retain ownership of its intellectual property and its global fermentation businesses outside the scope of the joint venture.

ADM’s other Decatur operations and its other global fermentation assets are not included in the transaction.

The launch date for the proposed joint venture is subject to customary closing activities as well as regulatory approvals.