Calbee and Haitai form joint venture to produce chips in South Korea

Calbee Inc. said Tuesday it will set up in June a joint venture with Haitai Confectionery &Food Co. of South Korea that will make potato chips and other snacks in the country.

Amid a stagnant Japanese snack food market, Calbee aims to increase its earnings by expanding overseas.

The two firms will each hold a 50% stake in the new company, with Calbee providing the president. Calbee and Haitai had a previous joint venture in the 1990s, but had ended the partnership due to financial troubles at the Haitai group.

Calbee is expected to introduce its mainstay potato snacks such as chips in South Korea through the joint venture. It hopes to raise its annual sales to more than 3 billion yen within five years.