On 22 February, South Korea’s CJ CheilJedang signed a technology licensing agreement for its lysine products with Chinese state-owned enterprise Singhuipin (StarLakeEppen).
This agreement is expected to serve as a springboard for CJ Cheiljedang to expand its lysine business, currently focused on production and sales in global markets, including China, into future business models involving licensing and technology transfer.
Through this partnership, CJ Cheiljedang will provide Singhuipin with exclusive license rights to use its lysine strain in China. The plan is to maximize synergy by combining the former’s proven, differentiated lysine fermentation and strain process optimization technology with Singhuipin’s large-scale production capacity and global market network.
Singhuipin is a global biofermentation technology company that produces amino acids, food additives, and fertilizers. CJ CheilJedang CJ Cheiljedang expects to secure stable royalty income from the new licensing agreement.
CEO of CJ Cheiljedang Yoon Seok-hwan said, “This cooperation is meaningful as it goes beyond a simple technology licensing agreement and that the 2 companies have laid a solid foundation for sustainable growth in the amino acid industry.”
In addition, the two companies plan to continue their cooperation in the fields of biotechnology and bio-fermentation technology in the future.
Over the years, CJ Cheiljedang has expanded its green bio product portfolio starting with lysine in 1991 followed by threonine in 2000, tryptophan in 2010, valine in 2014, and methionine in 2015. Currently, the company possesses the world’s largest portfolio of 8 amino acids for feed use, and produces all of its products using proprietary fermentation technology.
The global feed amino acid market is huge and fiercely competitive, fueled by aggressive capacity expansion by Chinese companies. Nevertheless, CJ Cheiljedang maintains leading market share in tryptophan, arginine, and isoleucine, leveraging its proactive investments and advanced R&D capabilities.
