CJ CheilJedang (KRX: 097950) and ADM (NYSE: ADM) have agreed to form a joint venture to manufacture and market feed-grade amino acids, with a focus on serving the livestock industry in the Americas, according to a press release from the companies.

CJ will hold a majority stake in the new venture, which will combine CJ's fermentation production facilities in Fort Dodge, Iowa, and Piracicaba, Brazil, with ADM's feed-grade amino acid plant in Decatur, Illinois. CJ's sales offices in Mexico, Brazil, and the United States will also be folded into the venture. CJ will license intellectual property related to feed-grade amino acids for use by the joint venture within North and South America, while retaining ownership of that IP and its fermentation businesses outside the venture's scope.

The two companies will grant the joint venture exclusive rights to manufacture and sell feed-grade amino acids in the Americas. ADM's other Decatur operations and its remaining global fermentation assets are not part of the transaction.

"This joint venture will strengthen U.S. production, creating a more reliable U.S. source of supply by bringing together the right assets, products and capabilities to support continued production in a highly competitive environment," said Kris Lutt, ADM's vice president of Innovation and Growth.

Lutt also noted recent decisions by the U.S. Department of Commerce and U.S. International Trade Commission to address what he described as unfair trade practices affecting U.S. imports of lysine from China.

Lance Haeryong Choi, Senior Vice President of CJ CheilJedang, said the combination of CJ's fermentation technology and ADM's U.S. manufacturing footprint and feedstock supply is intended to seek enhanced cost competitiveness and support stable domestic production for North America.

The launch of the joint venture is subject to customary closing conditions and regulatory approvals. No financial terms were disclosed.