KUALA LUMPUR: Felda Global Ventures Holdings Bhd said it had signed an initial deal with a unit of China’s grain stockpiler aimed at expanding its palm oil supply and distribution network in its third biggest market.
The world’s third-largest palm plantation operator said it signed the memorandum of understanding with Sinograin Oils, a subsidiary of state-owned China Grain Reserves Corp.
“We want to expand our business in China… With this MoU, we hope to extend FGV’s distribution and logistics network in China through Sinograin’s various strategic storage, processing and distribution facilities,” Felda Global CEO Zakaria Arshad said in a statement on Monday.
The CEO also said Felda Global hopes to explore the opportunity to integrate the operations of its Chinese unit with Sinograin’s domestic operations.
China is Felda Global’s third biggest buyer of crude palm oil with 308,040 metric tonnes of the edible oil exported in 2016.
Zakaria had told Reuters in March that the company was in talks with several companies, including Chinese firms, to establish partnerships to expand its distribution network and finance facilities.