CJ CheilJedang is restructuring its business model, moving away from its traditional focus on food and bio sectors to concentrate on three key areas: K-food, technology materials, and core materials. This strategic decision aims to address the rapidly changing business environment by streamlining operations and reallocating resources more efficiently.
On July 1, CJ CheilJedang announced its plans for a business unit rebalancing to respond to future uncertainties. The existing organization will be reorganized into three new divisions: Lifestyle Food, Technology Materials, and Core Materials.
CEO Yoon Suk-hwan stated that this structural change is intended to enhance execution capabilities through strategies aligned with the essence and purpose of each business, emphasizing the goal of transforming into a more robust business structure to maximize competitiveness and evolve into a global lifestyle leader.
The newly established divisions will drive growth through distinct roles. The Lifestyle Food division will serve as a global K-food center, focusing on products under the 'Bibigo' brand, including dumplings, chicken, processed rice, sauces, and kimchi, to accelerate its global market penetration.
The Technology Materials division will be a core pillar in developing new markets, leveraging R&D capabilities and technological competitiveness. It will focus on high-value solution businesses, including seasoning materials like nucleotides, natural seasoning materials such as Taste & Rich (TnR), and eco-friendly plastic materials like PHA.
The Core Materials division aims to enhance synergies among feed amino acids like lysine and tryptophan, general materials (sugar, flour, cooking oil), processed materials (oligodex, premixes), and new materials (allulose) to establish a stable revenue base and explore new business models.
Leadership has been assigned to oversee each division. The Lifestyle Food division will be led by Gregory Yep, an expert with over 30 years of experience in R&D and business innovation in the global food and nutrition industry, who has been representing the food division since last year.
Yoon Suk-hwan will also oversee the Technology Materials division, drawing on his experience in driving technological innovation in the bio sector to directly manage the expansion of high-value solution businesses. The Core Materials division will be led by Kim Chan-ho, who has been recognized for his management achievements since taking over as CEO of CJ Foodville in 2020, including turning the company profitable and expanding its global operations.
This organizational restructuring is seen as a response to declining performance last year, aimed at enhancing competitiveness and profitability across business units. CJ CheilJedang reported an operating profit of 861.2 billion won last year, a 15.2% decrease from the previous year, excluding the impact of Daehan Logistics.
A CJ CheilJedang official stated, "This structural reorganization represents a disruptive change and innovation aimed at elevating the competitiveness of each division to world-class levels by deeply contemplating the essence of our businesses. By strategically reallocating resources and capabilities, we will respond swiftly to market changes and lead future growth."
* This article has been translated by AI.
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