CJ Cheiljedang Corp., the food and beverage unit of South Korea's CJ Group, said Thursday it has broken ground for a flour plant due for completion in April next year in southern Vietnam.
Once completed, the plant will produce an annual 100,000 tons of flour and 10,000 tons of prepared dry mixes, available for home use and for small and mid-sized commercial bakeries, the company said.
CJ Cheiljedang set up a joint venture with Japanese trading firm Sumitomo Corp. in May last year for the project.
The two companies will invest a total of 50 billion won ($46.8 million) in the construction of the plant in an industrial complex in Vung Tau Province.
The Vietnamese flour market is estimated at 600 billion won, the South Korean company said, adding that it aims to have the biggest share of the country's flour market by 2020.
Cheiljedang said it also plans to expand its presence to the northern part of the Southeast Asian country. (Yonhap)