Major trading house Sumitomo Corp. said Wednesday that it will manufacture and sell wheat flour and flour premix products in Vietnam in cooperation with CJ CheilJedang Corp., a major South Korean food company.
Sumitomo and Seoul-based CJ are expecting Vietnamese demand for flour and similar food products to rise as robust economic growth fuels the adoption of Western-style diets there.
They will set up a joint venture with a flour milling plant in Ba Ria-Vung Tau province with an eye to launching production in March 2015. The new firm, tentatively called CJ-SC Global Milling LLC, will be capitalized at $44 million, with 49 percent put up by Sumitomo and the rest by CJ.
The plant’s annual wheat milling capacity will be 160,000 tons, which is the equivalent of about 15 percent of Vietnam’s total domestic food consumption.