PETALING JAYA: The collaboration between Sime Darby Plantation Bhd’s (SDP) downstream arm Sime Darby Oils International Ltd (SDO) and Guangxi Beibu Gulf International Port Group Ltd (BGP) is expected to bring more opportunities for refined palm oil trading and distribution in the Guangxi region of China.
In a statement today, SDO said the collaboration is targeting a combined trading volume for shortening and refined palm oil of approximately 500,000 tonnes a year.
The two parties are expected to collaborate in areas such as port, logistics, trade and other interests in the Beibu Gulf Economic Region.
This includes the utilisation of existing bonded warehouses as a refined palm oil trading and distribution centre in the Qinzhou Free Trade Zone as well as the marketing of health products.
SDO managing director Haris Arshad said the collaboration offers an exciting opportunity for the producer of certified sustainable palm oil (CSPO) as its products will be sold and distributed in major consumer areas in mainland China through the Qinzhou Port.
“With the growing demand for palm oil products and the increasing trade volumes between China and Malaysia, we anticipate this partnership will promote the growth of a sustainable supply chain and help spur greater demand for palm oil in China.
“This collaboration with BGP will be another milestone for SDO as it builds its position as the preferred supplier of CSPO and high-value palm oil products for the global market,” he added.
Yesterday, Prime Minister Anwar Ibrahim and several other ministers witnessed the memorandum of understanding (MoU) exchange between SDO and BGP in conjunction with the prime minister’s one-day working visit to Nanning, China.
BGP is engaged in port construction and operation, harbour industry, logistics, domestic and international trade, real estate development, environmental protection, and energy-saving technology.
Meanwhile, SDO is involved in trading, manufacturing as well as sales and marketing of oils and fats products, palm oil-based biodiesel, nutraceuticals and other derivatives.
Besides China, SDO has a global network in countries such as the Netherlands, UK, South Africa, Thailand, Indonesia and Papua New Guinea.
SDP’s shares closed down 13 sen or 2.8% at RM4.45, giving it a market capitalisation of RM30.77 billion.