JEOLLABUK-DO < invest Korea

According to Yonhap News,

(JEONJU=Yonhap News) Global dog and cat feed maker Royal Canin S.A.S. is pushing to build a pet food plant in South Korea's provincial city of Gimje at a cost of US$64 million, city officials said Tuesday.

The France-based pet food producer signed a preliminary agreement with the city government to build the plant by 2017, they said. Once built in the city, about 262 kilometers south of Seoul, it will be the company's 13th facility across the world.

"It was decided that Gimje will be the best location (to build our facility) based on the region's overall environment and its supply of skilled workers, as well as the government's support," said Loic Moutault, the regional director of the Asia Pacific branch of Royal Canin. "We will purchase most of the necessary ingredients for making our products from this region."

The deal is expected to give a boost to the local economy, as farmers here will be able to sell their rice and poultry, which is used for pet feed, to the new facility. The pet food business is also anticipated to create some 70 new jobs.

More than 80 percent of the feed produced here will be exported to neighboring countries including Japan, Taiwan, Vietnam, Australia and New Zealand, according to the company.

Demand for pet food in South Korea is growing. The country's pet market is one of the largest in Asia.

Royal Canin, founded in 1968, was the first to produce dry pet food in France and currently has facilities in the United States, South Africa, Brazil and China, among others. U.S. candy maker Mars, Inc., which holds about a 60 percent stake, took over the company in 2003.

yjkim8826@yna.co.kr

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