South Korea-based Orion Confectionery and Singapore-based Delfi Limited, formerly known as Petra Foods, have partnered to create Delfi-Orion, a joint venture based in Indonesia that is expected to corner 50% of the country’s US$4.28 billion chocolate market, reports Business Korea.

Delfi is Indonesia’s largest confectionery company, while Orion is one of South Korea’s largest snack and confectionery companies, however the two companies see the joint venture as being highly complementary and with a high level of synergies, with Delfi providing its strong sales, market knowledge, and marketing and distribution abilities with Orion’s manufacturing expertise and product knowledge according to a recent press release announcing the launch of the venture.

The project will be a 50:50 partnership with both parties contributing an initial combined investment of US$3 million to the venture.

“With this synergistic Delfi-Orion partnership, which combines the respective strengths of both Partners, we believe this collaboration will allow the Joint Venture to capitalize on the growth opportunities presented,” said John Chuang, Delfi Limited’s chief executive officer, adding, “This is Orion’s first-ever overseas joint venture partnership. We are very pleased to team up with the top confectionery company in Indonesia. It gives Orion a great opportunity to develop this fast growing market.”

Since selling its ingredients unit to Barry Callebaut for $860 million in December 2012, Delfi Limited has centered its attentions on its branded consumer confectionery business, according Confectionery News. This deal will provide the company with the ability to expand its product portfolio to include a wider range of offering including soft biscuits and cakes. The deal will also give both companies the ability to capitalize upon an expected 5% compounded annual growth rate for chocolate confectionery projected for Indonesia over the next five years by Euromonitor International, reports Confectionery News.